The Implications of the NCAA’s Ongoing Lawsuits

Written By: Jonathan Merlin

When the NCAA started allowing student-athletes to benefit from their NIL, they failed to consider many of the possible consequences and liabilities they would be opening themselves up to. These oversights have led to 2 critical lawsuits that the NCAA has been forced to fight. The decisions and results of these suits will have a seismic impact on student-athletes across the county.

The first case currently being fought in California is Hosue vs. NCAA. In this antitrust case, the NCAA has $4 Billion in liability for not compensating three classes of NCAA student-athletes. The case hopes to redefine NIL to include “broadcast deals, game promotions, and team apparel.” Back in November, Judge Claudia Wilken established that the three classes in the case are:

1. Players who played before June 1, 2021, and missed out on potential NIL compensation

2. Male players who played before June 15, 2016, and missed out on potential NIL compensation

3. Female players who played before June 15, 2016, and missed out on potential NIL compensation

If Judge Wilken rules in favor of the players, the NCAA would be forced to rethink its current compensation rules and find a way to get creative with how it intends to reimburse $4 billion in damages without going bankrupt. The case will not be tried until 2025, but there are significant financial implications for MKHustle clients and student-athletes nationwide. In the most extreme case, this ruling could allow student-athletes to benefit from broadcasted commercials, video games like the new NCAA 2025, and jersey sales.

Also, in California, the NLRB filed a case against USC, the PAC-12, and the NCAA seeking to establish student-athletes as employees. Earlier this year, a judge ruled that the student-athletes are, in fact, employees of USC and the NCAA is a joint-employer. This grants USC student-athletes the ability to unionize and ultimately collectively bargain with the school over issues like salary, health benefits, and academic resources. With this precedent, student-athletes across the country will try and start fighting for their own unions with their schools. This ruling will fundamentally change college sports as athletes will begin to be treated more like NFL or NBA players than college amateurs. This will affect college sports in a myriad of different ways, specifically NIL, as athletes would essentially have no limitations to sign deals and gather endorsements as long as they are within the new CBA agreement. While this case only has $180,000 in liability, the nationwide implications of this decision are worth way more than the monetary value of the case.

This is yet another example of how the NIL industry is constantly changing. We at MKHustle pride ourselves on remaining up-to-date on everything NIL to put our clients in the best position to succeed. As these changes continue to come into effect and more doors continue to open for student-athletes, MKH is always here to guide you through your journey