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Steven A

Is It Time for the NCAA to File Chapter 11 Bankruptcy?

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The article reads:

 

A national title-winning college basketball team has filed a lawsuit against the NCAA.

 

N.C. State's 1983 national title-winning men's college basketball team has filed a lawsuit against the NCAA, wanting past earnings when NIL wasn't legal.

 

Members of the 1983 team, led by legendary head coach Jim Valvano, are claiming that the NCAA "systematically and intentionally misappropriated the Cardiac Pack's publicity rights ... without the players' consent and while paying them nothing."

 

The lawsuit was filed by Stacy Miller of the Miller Law Group.

There are thousands - millions, maybe - of former college athletes who would have benefited tremendously from Name, Image and Likeness being in place when they were in school.

N.C. State's 1983 team is obviously part of that group. The Wolfpack's national title-winning team was one of the most popular in the country at the time.

 

However, it seems like a stretch to file a lawsuit against the NCAA, given everyone was aware and accepting of the situation at the time.

 

It'll be fascinating to see how this all plays out."

 

When will the madness stop? If I was still practicing law, I would hope never.  But since I am a fan, NOW!

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The line of demarcation in the House case is 6/15/2016 until the class was established in the case in 2023.

 

The $2.8B settlement if approved by Judge Wilkins, will be paid over ten years. Attorneys fees between 25% and 35% of the judgment are expected to be awarded to the plaintiffs' attorneys. The House settlement does not bar further litigation. The NCAA hopes that if the House settlement is approved, college athletics will receive much-needed relief from Congress.

 

Congressional relief may require forming a recognized players union for football and other sports, that can negotiate issues with 'management' however defined. In the Dartmouth basketball case, the players voted to join the Service Employees International Union Local 560. I doubt that Local 560 has much experience negotiating on behalf of athletes. 

 

As evidenced by the Dartmouth case and the Labor Department's suit against USC and the once-was Pac-12, expected to be amended to include B1G members, in addition to attorneys stirring the pot, you also have federal and state regulators and state legislatures chiming in.

 

And, colleges are bringing litigation against the NCAA via their attorney generals to thwart any regulation of transfers and NIL. In short, it is a complete out-of-control mess. Imagine the NFL having two openings every year when players could switch teams for any or no reason.  

 

At what point does Atlas shrug? The NCAA has 1,000+ members but fewer than 50 are movers and shakers in money-making sports. Looking at the proposed House settlement, IMO it would have behooved the NCAA to file an anticipatory Chapter 7 Liquidation Bankruptcy procedure that would have stayed the House case, other litigation, and regulatory actions and limited the NCAA's liability to assets in hand. Bring the proposed filing to Congress and either obtain Congressional relief or file and liquidate the NCAA, limiting current member's damages,

 

What possible sense does it make to settle House for close to $3B without relief from future litigation? Relief can only come from Congress or via a Super League where the athletes are employees and union members and negotiate enforceable agreements with the Super Conference management. 

 

The student-athlete model is dying a lingering death, Let's cut to the chase where schools unwilling to invest at least $X in athletics cannot participate at championship levels and where Northwestern isn't getting the same piece of the pie as Ohio State. 

 

Meanwhile, I'll enjoy what we have knowing that the Oregon Ducks may be brought to you by Nike but will not disappear.

 

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What do you need when 100 attorneys are buried up to their necks in sand?
 

More sand. 

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On 6/10/2024 at 5:56 PM, Drake said:

What do you need when 100 attorneys are buried up to their necks in sand?

What do you call when 100 attorneys are buried up to their necks?

 

A good start!

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A Power 4 in name only. As this article from Bama Hammer notes the ACC is on the brink of imploding. These dismal, to date, recruiting numbers for the B12 are additional evidence of how far behind the Power 2 the B12 lies, in recruiting, financially, and referring to 2023 Nielson ranlings, in the number of viewers tuning in. 

 

The B12 does not have a dedicated conference network. The B12 is a broadcasting afterthought for  ESPN and Fox. 

 

Consolidation of big-time football programs will continue.

 

BAMAHAMMER.COM

The pace of change in the college football world continues unabated. With more unknowns than ever before coaching staffs must rebuild rosters that change drasti

 

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Posted (edited)

The NCAA has not only given up trying to regulate transfers but is giving an extra year's eligibility to any athlete forced to sit out a year in 2019-20. How many athletes still enrolled this covers I have no idea.

 

WWW.NYTIMES.COM

The DOJ reached a settlement with the NCAA that will permanently bar the organization from restricting athletes’ transfer eligibility.

 

The Justice Department joined the suit against the NCAA regarding restrictions on transfers. Not only is Congress not helping the NCAA, but the federal government via the Justice and Labor Departments is doing everything it can to assure college athletes 'free agency' while at the same time working to make college athletes 'employees.'

 

The NCAA is no longer able to regulate as it so desires. So, why not liquidate the NCAA and form a new regulatory agency with the 1,000 + NCAA members cut back to a 'Power 2' regulatory body that can negotiate with a 'student-athlete' collective and agree on issues including eligibility, APR (should it even exist?), restrictions on transferring, NIL, tampering, etc. 

 

It's also time to form a football Super Conference. With B1G and SEC teams, if they so desire, such as Northwestern and Vanderbilt, opting out for football but opting in for all other sports. Teams such as Clemson, FSU, CU, and Utah would be added for football only.  

 

Title IX, NIL, tampering, and other issues such as antitrust liability would also be addressed, and the Super Conference, and all other college athletic programs that sign on to the agreement between students and 'management,' would receive the same Congressional protections afforded the NFL, MLB, NBA, etc. 

 

As I asked in an earlier comment, why settle without protection against further liability? Why agree to kick in $20M a year, and still be subject to litigation?  

 

Then again, I never would have agreed to take on one-twelfth of the Pac-12's liabilities while handing two-member teams 100% of the assets. Someone with 'street smarts' and not college presidents best get involved or the baby could be tossed out with the bath water.

Edited by Jon Joseph
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Forgive my colloquialism, but the NCAA is screwed, blued and tattooed.  I agree with you Jon and you don't have to be a lawyer to know that any settlement that doesn't cap future damages would be disastrous in the long run.

 

It's a new world order and college athletics (or at least the moneymaking portion) has to start with a clean slate by whatever means necessary.  If that includes bankruptcy protection then so be it.

 

I think most of us agree in principle that the athletes deserve compensation, but at some point you have to draw the line and move forward.  Do we really need to compensate the estate of Knute Rockne for "The Gipper"?

 

 

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An update on Congress possibly taking action to help out college sports.

 

WWW.NYTIMES.COM

H.R. 8534 — dubbed the “Protecting Student Athlete’s Economic Freedom Act" — was approved by the House committee with a 23-16 vote.

 

 

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