A federal judge ruled against the NCAA in the Ed O’Bannon vs NCAA case, paving the way for college athletes to profit off their likeness. College athletes were previously forced to forfeit the rights to their own names while they produced billions for the NCAA. Although the NCAA will be allowed to cap the athlete’s amount of licensing revenue, this is a major victory over the hypocritical NCAA. From SI.com:
A federal judge has ruled against the NCAA in a landmark antitrust suit brought by a group of plaintiffs led by former UCLA basketball player Ed O’Bannon.
U.S. District Judge Claudia Wilken ruled that the college governing body’s limits on athlete compensation violate antitrust laws.
Wilken issued an injunction that will “enjoin the NCAA from enforcing any rules or bylaws that would prohibit its member schools and conferences from offering their FBS football or Division I basketball recruits a limited share of the revenues generated from the use of their names, images, and likenesses in addition to a full grant-in-aid.”
Though the NCAA may still cap football and men’s basketball players’ compensation while they are enrolled in school (the cap cannot be below the cost of attendance), the athletes are entitled to a “limited” share of licensing revenue from a trust after they leave school or upon their eligibility expiring.
The NCAA will be allowed to cap the amount of money held in the trust, but the cap cannot be below $5,000 for every year athletes remain academically eligible.
The injunction will not take effect until the start of the next football and basketball recruiting cycle, meaning it won’t apply to athletes who enroll before July 1, 2016.
Wilken also ruled that the NCAA can continue to prohibit athletes from being compensated for endorsements.