Lawyer files antitrust lawsuit to challenge NCAA business model

An ESPN report said high-profile sports labor attorney Jeffrey Kessler has challenged the business model of the National Collegiate Athletic Association on Monday. The lawsuit filed in a New Jersey federal court claims that the capping of player compensation at the value of a sports scholarship was unlawful.

Telling ESPN about the suit, Kessler, who represented a group of college basketball and football players, said, "The main objective is to strike down permanently the restrictions that prevent athletes in Division I basketball and the top tier of college football from being fairly compensated for the billions of dollars in revenues that they help generate. In no other business -- and college sports is big business -- would it ever be suggested that the people who are providing the essential services work for free. Only in big-time college sports is that line drawn."

Aside from NCAA, the lawsuit also named the five largest sports conferences, namely the Southeastern, Big Ten, Pacific-12, Atlantic Coast and Big 12, ESPN said. The plaintiffs are seeking injunction to the NCAA-style amateurism of its business model. The plaintiffs in the lawsuit include Cal tight end Bill Tyndall, UTEP tight end Kevin Perry, Clemson defensive back Martin Jenkins and Rutgers basketball player J.J. Moore. The sports news outlet also said that the lawsuit is also seeking group status and is wanting to represent all of the scholarship athletes who play in FBS football and Division I basketball.

Although a similar legal action was filed by a Seattle firm on behalf of ex-West Virginia running back Shawne Alston, ESPN said that the lawsuit did not ask for damages but only seeks a precedent ruling under the basis that there are no caps in a free market. The lawsuit also claimed that NCAA's business model is more of like a cartel that fixes compensation paid to athletes despite the fact that the latter might receive offers that are more than just tuition, room, board and books offered by the league.

Kessler stressed, "Do fans care that the coaches on these teams are making millions of dollars? Do fans care that these programs [collectively] are generating billions of dollars in revenue? I don't think it will be an issue for fans if some reasonable, fair portion of the revenue goes to the athletes, many of whom never gradate or most of whom never have a pro career but along the way contribute to the revenue pie of college sports."

Tags

NCAA athletes compensation, NCAA compensation capping, amateurism in the NCAA

© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.