New Jersey Assembly Panel in Favor of Student-Athlete Endorsement Deals

The New Jersey Assembly Higher Education Committee voted in favor of the New Jersey Fair Play Act on March 5, 2020. The bill would permit college athletes within the state of New Jersey to receive compensation for endorsement deals. The panel voted 2-4 to advance the legislation, which would ultimately take effect in five academic years after its enactment.

If signed into law, the New Jersey Fair Play Act would ensure the right of student-athletes to make money off of their name, image, and likeness …

February 5, 2020 NCAA / Sponsorships

NCAA Agrees: Student-Athletes Can Receive Funding for Olympic Training

The NCAA has determined that elite collegiate athletes may receive funding for Olympic training without risking their eligibility under the organization’s amateurism rules.

The Division I Counsel, a 40-person committee that oversees the NCAA, came to this decision at the NCAA 2020 Convention in Anaheim, California. As we have previously reported, the NCAA’s rules of amateurism currently prohibit college athletes from being financially compensated for their athletic performance. However, in a slight modification to this provision, the Division I counsel decided that elite …

January 8, 2020 Antitrust / Legislation / Litigation / NCAA / Sponsorships

NCAA President Says Student-Athlete Compensation Rule Changes Limited by Antitrust Lawsuits

NCAA President Mark Emmert stated in a panel that the NCAA’s planned reforms regarding student-athlete compensation will be limited by rulings in various antitrust cases.

After California passed a law allowing for student-athlete compensation and many states looked to follow, the NCAA announced in a statement that it would allow student-athletes to benefit off their name, image, and likeness. The NCAA stressed that any changes would have to be consistent with the collegiate model.

In addition to new laws and proposed legislation, the NCAA …

December 16, 2019 Legislation / NCAA

New Jersey State Assembly’s Not-So-Flowery Debate on Student-Athlete Pay

New Jersey is the latest state to advance a student-athlete pay-for-play bill. On November 14, 2019, New Jersey State Assemblywoman Lisa Swain and Assemblyman P. Christopher Tully introduced Assembly Bill 5863, or the New Jersey Fair Play Act.

Previously, we reported a slate of states, including California, passed or introduced student-athlete compensation bills. Like many of those bills, the New Jersey bill will allow student-athletes to earn compensation using their name, image, or likeness. However, some New Jersey State Assembly members voiced their concerns with …

December 12, 2019 Legislation / NCAA / Sponsorships

An Unusual Coalition: Five U.S. Senators Spark Bipartisan Effort on Student-Athlete Compensation

A group of five United States senators announced that they will be discussing the drafting of federal legislation addressing the compensation of college athletes. The five senators are: Cory Booker, D-New Jersey; Chris Murphy, D-Connecticut; Mitt Romney, R-Utah; Marco Rubio, R-Florida; and David Perdue, R-Georgia.

As we reported earlier, California became the first state to allow student-athletes to be compensated through endorsements or sponsorships. The NCAA was vehemently opposed to any efforts to mandate payment of college athletes and even threatened to ban California schools …

November 18, 2019 Class Actions / Labor & Employment / Litigation / NCAA

One More Time: New Lawsuit Argues NCAA Must Pay Athletes Minimum Wage

Trey Johnson, a former defensive back for Villanova University, has sued the NCAA, arguing that the organization has violated federal labor law and that it must pay student-athletes a minimum wage.

In his lawsuit, Johnson argues that student-athletes clearly constitute employees under the Fair Labor Standards Act (FLSA). Specifically, he notes that college students in work-study programs are classified as employees, meaning that they are subject to minimum wage laws. Meanwhile, student-athletes, who work longer schedules and create the need for some of these work-study …

November 12, 2019 Antitrust / Class Actions / Litigation / NCAA / Rights

NCAA Student-Athlete Pay Rules, Opposition Grows

On October 30, 2019, the plaintiffs in the Alston v. NCAA case gained support in the form of an amicus curiae brief from the Open Markets Institute, Change to Win, the National Employment Law Project, economics professor Marshall Steinbaum, and law professors Sanjukta Paul and Veena Dubal. In the brief submitted to the Ninth Circuit Court of Appeals, the amici argue that the U.S. District Court Judge for the Northern District of California, Claudia Wilken, reached “an overly narrow” decision based upon …

November 6, 2019 Antitrust / Contract / Legislation / Litigation / NCAA

NCAA Plays Defense on All Fronts, College Athletes Seek Big Win in Ninth Circuit

On March 8, 2019, U.S. District Court Judge for the Northern District of California, Claudia Wilken, ruled that the NCAA’s student-athlete compensation limits “unreasonably restrain trade in violation of . . . the Sherman Act.” A group of former and current student-athletes, including plaintiff Shawne Alston, applauded Wilken’s decision but is requesting that the Ninth Circuit invalidate caps on all forms of compensation.

The NCAA appealed Wilken’s decision and is once again defending its student-athlete compensation rules before the U.S. Court of Appeals for the …

November 4, 2019 Antitrust / Legislation / NCAA

NCAA Offers Lifeline: College Athletes To Benefit From Name, Image, Likeness

The NCAA announced it is starting the process to allow student-athletes to benefit off their name, image, and likeness. The move comes after multiple states introduced legislation permitting student-athletes to earn this form of compensation.

Previously, we reported California Gov. Gavin Newsom signed into law the Fair Pay to Play Act. The law will take effect January 1, 2023 and will allow student-athletes to enter into endorsement deals. Since Gov. Newsom signed the California bill, multiple states introduced legislation, including New York. The move …

October 15, 2019 Litigation / NCAA / Sponsorships

(Anti)trust the Process: Could a Ban-But-Not-Break Gamble lead to the NCAA’s Doomsday Scenario?

Money and power. The NCAA for years has had both but now may end up with neither.

The recent passing of California’s Fair Pay to Play Act has the potential to fundamentally change college sports forever. This groundbreaking legislation allows athletes from in-state schools to earn compensation through endorsements. Trying to prevent the floodgates from opening, the NCAA is firmly planting its foot down, demonstrating its unwillingness to move off the status quo. Instead, they are threatening to ban California schools from competition rather than …