Jim Harbaugh Suspended by the NCAA, NCAA Hit With Another Antitrust Lawsuit, + ICYMI | Newsletter #260

Aug 08, 2024

Today’s Thursday newsletter includes highlights from this week, important news from last week, and what to watch for.

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Recapping Major News This Week:

The NCAA Division I Committee on Infractions panel issued a four-year show-cause order and a one-season suspension on coach Harbaugh. This means that Harbaugh would have to sit out an entire year if he is hired at any time during the show-cause period.
The case involves Michigan and five individuals who work/worked for the football program for violations concerned with recruiting and coaching activities by non-coaching staff members that occurred within the football program. The case is not related to the alleged sign-stealing investigation that is currently ongoing.
Harbaugh’s specific infractions had to do with “impermissible recruiting contacts and inducements during the COVID-19 dead period.” Harbaugh’s violations were considered Level II violations, but were raised to a Level I violation due to Harbaugh’s “intentional disregard for NCAA legislation and unethical conduct”.
After winning the 2023 National Championship with Michigan, Jim Harbaugh signed a five-year, $80 million dollar contract to serve as the head coach of the Los Angeles Chargers.
CLICK HERE to learn more.

The new suit is brought by Riley Cornelio - a former college baseball player from Texas Christian University. The suit seeks damages for athletes who were on partial scholarships because of an NCAA rule that limits the number of scholarships by sport.
The class action complaint specifically states that “NCAA Bylaw 15.5.4 limits NCAA schools to only offering 11.7 baseball scholarships. But that’s not nearly enough players for a college baseball team. These scholarships are spread amongst 27 players (or sometimes 32 in recent years), so on average, each player is on a 43% scholarship. No matter the school’s resources, and no matter how much a school wants to invest resources in baseball, the limit is the same.” The complaint goes on to suggest that if NCAA schools were permitted, they “would offer more scholarship money to their college baseball players.”
The class action complaint comes after the NCAA announced that they are eliminating scholarship restrictions and replacing them with roster size limits as part of the submitted House settlement.
Cornelio’s attorney is also the plaintiff’s attorney in Fontenot v. NCAA - an antitrust case that challenges a NCAA Bylaw which prohibits athletes from receiving direct compensation related to their athletic endeavors.
CLICK HERE to learn more.

House case hearing set for September 5th - LINK
NCAA releases proposal for Women’s March Madness “prize money” system - LINK
Pitbull is purchasing the naming rights to FIU’s football stadium - LINK
NIL agency Profound Sports is offering House back damage payments, upfront, through private equity for a 15% cut - LINK
Ole Miss football coach sued for copyright infringement for tweeting a passage from the book “Winning Isn't Normal” - LINK

Fontenot v. NCAA Case Adds Four New Plaintiffs - Still Proceeding Despite the House Settlement

Fontenot attorneys filed an amended complaint adding four other names to the case caption: Mya Hollingshed, Sarah Fuller, Deontay Anderson and Tucker Clark. The quartet joins original complainant Alex Fontenot, a former University of Colorado running back.
The antitrust case challenges the NCAA’s Bylaw 12, which prohibits athletes from receiving direct compensation related to their athletic endeavors. Specifically, Fontenot targets the billions of dollars in television revenue generated in recent years.
Although House attorneys believe Fontenot will eventually be incorporated into the House settlement, Fontenot’s lawyers amended their complaint to explain why they believe their case should proceed whether or not the settlement is approved.
The Plaintiff’s Attorney is also the same attorney in Cornelio v. NCAA - the new antitrust class action suit that was filed on Wednesday against the NCAA.
CLICK HERE to learn more.

Cornelio v. NCAA adds to the growing list of antitrust lawsuits being filed against the NCAA. Although the NCAA recently submitted their groundbreaking settlement in the House-NCAA case, it does not help them against other antitrust suits because these agreements were not collectively bargained.
In the months following the proposed settlement, there have been multiple legal developments surrounding the NCAA. (1) Two lawsuits were recently filed by two groups of former college basketball players - one led by Mario Chalmers and the other led by the famous 1983 NC State National Championship team - against the NCAA for the unauthorized use of their name, image and likeness. (2) two ongoing lawsuits against the NCAA - Johnson v. NCAA and Fontenot v. NCAA - had recent developments that could lead to more trouble for the NCAA. And now (3) the recent Cornelio complaint which was issued against the NCAA.
The NCAA is desperate for Congress to step in and help resolve the organization’s mounting legal troubles. NCAA President Charlie Baker has often said that action by Congress is needed to protect the vast majority of athletes whose ability to play college sports is being threatened. As a result, the NCAA has been outspoken about the need for an antitrust exemption that would allow the NCAA to make rules safeguarding college sports without the constant threat of litigation. Without an exemption, the NCAA’s laundry list of antitrust cases will continue to grow.

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