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{"id":1349,"date":"2015-10-09T16:37:06","date_gmt":"2015-10-09T16:37:06","guid":{"rendered":"http:\/\/j469.ascjclass.org\/?p=1349"},"modified":"2015-10-09T16:37:06","modified_gmt":"2015-10-09T16:37:06","slug":"money-ethics-and-college-sports","status":"publish","type":"post","link":"http:\/\/j469.ascjclass.org\/2015\/10\/09\/money-ethics-and-college-sports\/","title":{"rendered":"Money, Ethics, and College Sports"},"content":{"rendered":"

College sports are an important fragment of most universities. Athletics create a sense of community and pride for the schools and can ultimately lead to more applications and alumni donations if a specific sport performs well. Those sports in particular are male football and basketball teams. Many universities receive millions of dollars in revenue from television broadcast deals and merchandise sales for college football, and to an extent, men\u2019s basketball. It is no wonder why the question of \u201cshould college athletes get paid?\u201d is in discussion as well as currently being discussed in court.<\/p>\n

One man who stepped up and voiced an opinion is former UCLA basketball star and NBA player, Ed O\u2019Bannon. In July of 2009, O\u2019Bannon filed a lawsuit against the National College Athletic Association pleading the department violates antitrust laws by using former and current players images, names, and likenesses for commercial purposes. What sparked O\u2019Bannon\u2019s reason to be a lead plaintiff was seeing his image in an NCAA video game that he was not compensated for. The O\u2019Bannon v. NCAA case is fighting against the college organization and believes players should be compensated a fraction of the billions of dollars generated by college athletics from its huge television contracts. After six years the case has caused much controversy for the NCAA and universities. But just recently, some court decisions have impacted the case.<\/p>\n

The NCAA has created multiple laws to keep college athletics as amateurism sports. This includes that all athletes cannot be compensated for the use of their name, image, and likeness while attending the university. If such actions are performed, punishments can be anywhere from losing playing time to being kicked of the team. For instance, during the 2014 football season, former Georgia player Todd Gurley was suspended from the team for four games because he made money off his own autograph. It even goes to as far as former players, like Ed O\u2019Bannon, not compensated for their image used in video games authorized by the NCAA.<\/p>\n

The NCAA is fighting for college athletes to receive no compensation beyond their scholarship because it would ruin amateurism status of athletes and goes against \u201celigibility\u201d rules. Others argue paying players would destroy the moral purpose of college athletics and drive spectators away. But let\u2019s not leave out a big factor here, money. It has been debated whether or not universities could generate enough money to pay athletes while also supporting them and contribute to other less popular sports. However, these concerns still leave out the main point. People are arguing that it is the athlete\u2019s own name, and ethically he\/she should be able to make money from it. Several college players have testified that the sport they play in college is their occupation and the many hours they devote to the game makes it difficult to function as a regular college student. An article from the Business Insider<\/a> discussed one of the O\u2019Bannon v NCAA trials over a year ago and how O\u2019Bannon viewed his student-athletic career. “I was an athlete masquerading as a student,” O’Bannon said at trial. “I was there strictly to play basketball. I did basically the minimum to make sure I kept my eligibility academically so I could continue to play” (Dahlberg). This statement from the article demonstrates the commitment student-athletes have and why many are arguing for players to receive payment.<\/p>\n

Recently some major decisions have been ruled in the O\u2019Bannon v NCAA case. In June of 2014, a federal judge ruled that the NCAA cannot stop players from selling the rights to their names, images, and likenesses. This conclusion hit hard on the NCAA regulations which prohibit student-athletes from receiving anything more than a scholarship. The court suggested an idea that money generated from television contracts be put into a trust fund that college football and basketball athletes would receive after eligibility. The cap for the money would be up to $5,000 a year, and the most a player could make is $20,000 after four years. The NCAA of course disagreed with this statement and fought against it.<\/p>\n

On September 30th<\/sup>, 2015 The Ninth Circuit of Appeals confirmed the districts court decision that the NCAA amateurism rules violated antitrust laws. This of course was a big gain for O\u2019Bannon but was not a complete victory. The court went against the injunction that would have forced universities to pay athletes up to $5,000 dollars a year. However, schools now must cover full cost of attendance, which is food, rent, books, etc., on top of scholarship. An article from Sports Illustrated<\/a> claimed that Judge Jay Bybee, one of three judges out of the panel, expressed concerns that cash sums past educational expenses would transform NCAA sports into \u201cMinor League\u201d status. However, many still believe the cost of attendance is not enough for college athletes whose universities negotiate billion-dollar TV contracts.<\/p>\n

The situation does not end there. Even though O\u2019Bannon did not win the trust fund debate, the Lawsuit is far from over and he is not the only one striking down on the NCAA. Shawne Alston, Martin Jenkins, and two dozen other former and current players argue that the cap of athletic scholarships and cost of attendance are not enough and violate antitrust laws. If the cap was demolished, Universities may be forced to pay student-athletes market price scholarships, which can extend up to seven figures. This litigation will be heard in the U.S. District Court for the Northern District of California soon. That being said, let\u2019s look at the possible financial decisions college athletics and universities would consider if athletes were required to receive money.<\/p>\n

To help understand the situation better, I sat down with USC Sports Information Director Jeremy Wu and discussed the conditions that have athletic departments in dismay.<\/p>\n

According to Jeremy, the new ruling that declares that Universities must pay full cost of attendance, food, rent, books, and more, is the first strain on schools financially. Some schools already proved this for football, such as USC, but now are required for all sports. Other major and smaller universities are in the process of making this transition.<\/p>\n

The money for funding full attendance does come from the \u2018billions of dollars\u2019 schools receive from television contracts. But what a lot of people have a hard time understanding is the money received from these contracts are not just supporting football, but an entire athletic program. \u201cA lot of schools even with TV contracts don\u2019t make more money than they lose\u201d Jeremy said, \u201cEven though contracts are huge, such as millions of dollars, funding a full athletic department is a lot and it is covering more than just football, but all the sports\u201d. Jeremy also continued to mention the money generated from TV contracts pays coaching staffs for all teams and buys necessities for the sports.<\/p>\n

Before we dig in deeper, here are some interesting facts from the article, Cracking The Cartel<\/em><\/a>,<\/em> that talks about where the money for athletics is going:<\/p>\n