This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

O'Bannon v. NCAA Suit Could Be a Game Changer in College Athletics

Stocks in this article: CBS TWC EA CMCSA DTV

NEW YORK (TheStreet) -- The landscape and future of big-time collegiate athletics continues to be played out in an Oakland courtroom where former UCLA Bruin basketball star Ed O'Bannon took the stand Monday on the first day of the class-action antitrust lawsuit he brought on behalf of former players against the NCAA in 2009.

The suit charges the NCAA has been profiting from the names and images of its players in its television broadcasts as well as other commercial purposes while unlawfully restricting the players' ability to do the same. The outcome will have a major impact on the business of pro and college sports.

While past players stand to be compensated if the NCAA loses this case, the decision will have an impact on future players in Division 1 basketball and Football Bowl Subdivision (FBS) programs and their ability to claim a piece of the bountiful pie that comes from fat television deals the NCAA makes.

March Madness, one of the most popular events on the sports calendar, is aired by CBS (CBS) and Time Warner's (TWX) Turner Networks under a decidedly non-amateur $10.8 billion agreement that stretches to 2024.

It was announced at the beginning of the trial that the NCAA had settled a related case brought by former Arizona State quarterback Sam Keller involving the likeness of players in video games. The NCAA agreed to pay $20 million ($4,000 per player approx.) to certain players whose photos were used for avatars in video games produced by Electronic Arts (EA) and Collegiate Licensing Company, which is owned as a subdivision by IMG Worldwide, a private company.

While the Keller settlement is in no way connected to the O'Bannon case, the case narrows the scope strictly to the television issue, according to NCAA attorney Glenn Pomerantz. Pomerantz looked to draw U.S. District Judge Claudia Wilken's attention just after the settlement was announced.

"This will allow us now to focus on the issues of live broadcasts and rebroadcasts," he said in the courtroom.

Judge Wilken listened as O'Bannon took the stand and said he'd spend as many as 40 to 45 hours a week during his time at UCLA from 1991-1995 focused on basketball and less than a quarter of that time on his studies.

"I was an athlete masquerading as a student," O'Bannon said. "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."

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs