President Baker's Proposal, Two Major Antitrust Lawsuits, + ICYMI & More | NIL Newsletter #204
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Major News
Baker Proposes New NCAA Framework
On December 5th, NCAA President Charlie Baker published a letter outlining a new vision for an upper echelon of Division I universities.
“First, we should make it possible for all Division I colleges and universities to offer student-athletes any level of enhanced educational benefits they deem appropriate. Second, rules should change for any Division I school, at their choice, to enter into name, image and likeness licensing opportunities with their student-athletes.”
After outlining his reasons for the recommendation, Baker recommended that this new subdivision with “the highest resources” should be required to do two things: (1) within the framework of Title IX, invest at least $30,000 per year into an enhanced educational trust fund for at least half of an institution’s student athletes, and (2) create rules with their peer subdivision institutions that differ from standard NCAA policies.
Baker stressed flexibility and the growing financial gap between the highest resourced athletic departments and other institutions in Division I.
Seven States File Lawsuit Against NCAA
On Thursday, seven states filed a joint-suit against the NCAA, challenging the association’s transfer eligibility rule under the Sherman Antitrust Act.
The lawsuit argues that the multi-time transfer rule, requiring athletes who transfer more than once to sit out for a year, is unlawful under the Act.
The suit was filed in the Northern District of West Virginia, and includes Ohio, Illinois, New York, Colorado, North Carolina, Tennessee, and West Virginia.
North Carolina’s inclusion comes as no surprise, considering their multiple warnings during the Tez Walker eligibility decision.
The lawsuit seeks relief for all multi-time transfers, not just those in the seven states. “We only name a couple [athletes] for illustration purposes. […] We’re suing on behalf of the state’s interest in a competitive marketplace and enforcing antitrust law,” said Ohio attorney general Dave Yost.
Athletes File Antitrust Suit Against NCAA
Also on Thursday, a trio of student-athletes filed a lawsuit against the NCAA claiming that the association’s rules prohibiting schools from paying players violate antitrust law.
The three lead plaintiffs are Duke Football’s Dewayne Carter (above), Stanford soccer’s Nya Harrison, and TCU basketball’s Sedona Prince (who is also involved in the ongoing House case).
The lawsuit was filed in the Northern District of California, a district home to the O’Bannon, Alston, and House cases, and one often partial to athletes.
The three athletes are represented by Jeffrey Kessler and Steve Berman, who previously sued the NCAA in Alston.
The lawsuit mentions Baker’s recent proposal as proof that the wealthiest institutions can afford to pay their players: “This step by the NCAA shows that paying college athletes is perfectly compatible with the big business of college sports and that the restrictions the NCAA seeks to maintain on these payments, including limiting them to ‘educational’ benefits or payments through trust funds, cannot be justified in the current environment.”
For Athletes
Deal of the Week
Dylan Harper, the top ranked guard in the class of 2024, committed to Rutgers on Wednesday.
Harper announced his commitment from Fanatics headquarters in New York City, while also announcing a multi deal with the company.
ICYMI
Student-Athlete NIL released a breakdown of collective funds by position group. LINK
Drexel announced the Dragon Fire collective in partnership with Student Athlete NIL. LINK
UCLA is partnering with Advance to host NIL educational sessions. LINK
Arizona continues its partnership with Altius by hiring an Altius NIL GM. LINK
Senators Chris Murphy and Bernie Sanders reintroduced a bill to amend the NLRA to define college athletes as employees. LINK
Have you checked out OSC’s website?
Head to www.OptimumSportsConsulting.com to find important resources and features relating to all things NIL. These resources include State by State Resources for Admins, Agents and Athletes, including our initial “OSC Summaries” for over a dozen states coming soon.
More to come too, including links to helpful state information- agency laws and information about school policies, as well as seminar/congressional notes, worksheets, and much more!