Sources: NCAA could pay $2.7B in antitrust suits
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Pete Thamel
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Dan Murphy
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Dan Murphy
ESPN Staff Writer
- Covers the Big Ten
- Joined ESPN.com in 2014
- Graduate of the University of Notre Dame
The NCAA’s national office might be footing the bill for a settlement expected to be more than $2.7 billion in the landmark House v. NCAA lawsuit and other related antitrust cases, in hopes of reshaping and stabilizing the college sports industry, according to multiple sources on Thursday.
Sources told ESPN this week that parties have proposed the NCAA’s national office — rather than its individual member schools or conferences — would pay for the settlement of past damages over a period of 10 years. The NCAA payments would be paid to former college athletes who say they were illegally prevented from making money by selling the rights to their name, image and likeness.
The settlement would come with a corresponding commitment from conferences and schools to share revenue with athletes moving forward, per sources. The settlement would establish a framework for power conferences to share revenue with their athletes in the future. Sources have told ESPN that schools are anticipating a ceiling of nearly $20 million per year for athlete revenue share moving forward. (That figure for a revenue share is derived from a formula that’s expected to be, per sources, 22% of a revenue metric that’s still being discussed, which is set to be based on various revenue buckets. It would be up to the schools to share that much.)
The dollar value and timing, sources cautioned, is not yet set and could change due to the myriad variables involved in the case.
Steve Berman, co-lead counsel for the plaintiffs, told ESPN he believes the House case is “the difference-maker” after more than a decade of legal battles chipping away at the NCAA’s rules. Berman declined to comment on the specifics of the ongoing settlement talks, but said the plaintiffs’ leverage is growing as the case moves closer to trial.
“Our leverage is a big cannonball rolling down a hill and picking up speed,” Berman said. “The longer they wait, the more they’re going to have to pay. It’s that simple.”
The NCAA declined to comment.
Since a cadre of collegiate sports and NCAA officials met plaintiffs’ attorneys at the Hyatt Regency at the Dallas-Fort Worth airport on April 25, the details for potentially settling the House case have begun to be distributed to campuses. After interviews with more than a dozen college officials, industry sources and lawyers this week, ESPN has learned that many crucial details for a settlement remain unsolved, but both sides are making progress toward a deal that could serve as a catalyst for the new business model of college sports.
“They’ve got stuff on paper,” said an industry source. “This is not just lawyers and commissioners meeting and having a cocktail. This snowball is moving downhill. The horizon on this is about a month.”
Plaintiffs in the House case argue that the NCAA is breaking the law by placing any restrictions on how athletes monetize their name, image and likeness. The case is scheduled to go to trial in January 2025. If the NCAA loses the case at trial, it could owe athletes more than $4 billion in damages.
Along with saving money, the NCAA is also motivated to settle in hopes of laying the groundwork for a system that could help them avoid future litigation. A settlement alone might not provide that protection without additional help from Congress or a collective bargaining agreement with athletes.
The NCAA and its conferences are defendants in at least two other federal antitrust cases that are challenging what remains of the association’s amateurism rules. Those outstanding cases would also likely be resolved as part of the House settlement.
Earlier this month, the plaintiffs filed a motion for summary judgment, which asks the judge in the case to rule on several key arguments prior to trial. The hearing for summary judgment is scheduled for September, and a ruling in the plaintiffs’ favor could continue to increase their leverage in a negotiation.
One of the outstanding issues in the potential settlement of the House case is whether or not a settlement would eliminate future antitrust lawsuits against the NCAA and its schools.
“I’m very concerned about the fact that a settlement is really not a settlement,” an industry source told ESPN concerning looming issues that need to be resolved before settling. “It doesn’t have enough protections. If it were an all-encompassing settlement with congressional approval, I’d feel a lot better.”
College sports leaders have been asking Congress to write a new federal law for several years that would, among other things, protect them from future litigation.
Sources told ESPN that some school officials are hoping that a House settlement could spur action on Capitol Hill. Several members of Congress who have worked on college sports-related legislation in recent years declined to comment on what impact a settlement might have on the creation of a new federal law.
As information has been brought back to campuses, the biggest concern is how protective the settlement would be from future antitrust lawsuits.
“You can’t just settle the lawsuits,” said another industry source. “You’ve got to be able to emerge with something in return, other than the settlement. If you don’t have the requisite ability to structure the future. All we’re going to do is shake hands and wait five minutes for the next filing. You don’t want to be waiting for the next lawsuit here.”
NASHVILLE, Tenn. — New York Rangers captain J.T. Miller will miss at least one game after getting injured Saturday and is not traveling with the team to Nashville.
Coach Mike Sullivan said Miller was still being evaluated back home for an upper-body injury and would not play Sunday night against the Predators.
Miller left the Rangers’ game against Philadelphia with about eight minutes left after taking a big hit from Flyers defenseman Nick Seeler and landing awkwardly. The 32-year-old forward appeared to be favoring his right arm or shoulder while in pain on the bench and skating off to go down the tunnel for medical attention.
“You don’t want to lose any teammates,” center Mika Zibanejad said. “When you see your captain go down and you don’t see him come back, that obviously becomes [a situation] for us to step up and everyone has to do a little more when a guy like that leaves. Just hoping everything is OK.”
Miller was named captain before training camp. He has 10 goals and 12 assists in 35 games this season and is believed to be in consideration for the U.S. Olympic team, though it’s unclear whether this injury could cloud that possibility.
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Greg Wyshynski
New Jersey Devils star Jack Hughes, out since Nov. 12 with a “freak” hand injury, will return to the lineup against the Buffalo Sabres on Sunday.
Hughes, 24, injured his hand at a team dinner in Chicago on Nov. 13, underwent surgery on his finger and was given a recovery window of eight weeks. He has been skating throughout his rehab and was recently spotting using a stick again on the ice.
He returned to Devils practice Sunday at an optional skate.
“Yeah, I’m going to play tonight. Might as well ease my way in,” Hughes joked after practice.
Both Hughes and the Devils were off to flying starts before his injury. New Jersey was 12-4-1, with the second-best points percentage (.735) in the NHL behind the Colorado Avalanche (.794) and first place in the Metropolitan Division. Hughes had 20 points in his first 17 games, including 10 goals.
The Devils struggled without their top-line center, going 8-10-0 (.444) and scoring 3.35 goals per game with Hughes to 2.28 goals per game without him. But they have remained in the playoff race in a competitive Eastern Conference, holding the final wild-card spot entering Sunday.
Hughes is one of three key players returning to the Devils’ lineup Sunday against surging Buffalo, which has won five straight games. Forward Timo Meier last played Dec. 9, having taken leave from the team for a family matter. He has 11 goals and 12 assists in 30 games. Forward Arseny Gritsyuk has missed the past four games due to injury. The rookie has 16 points in 31 games.
“To come back from the road trip and to have those guys in the building and then on the ice, it gives the [team] a boost,” coach Sheldon Keefe said Sunday. “There’s an emotional impact.”
Keefe said the challenge for his team is not to become suddenly passive because help has arrived.
“We’ve got to keep playing the way we’ve been playing and have those players enhance that,” he said. “Sometimes when you bring important people back to your group, there can be a tendency for the rest of the group to take a back seat. And that cannot happen.”
Sunday was Hughes’ first appearance since the injury and the first time he has faced questions about his brother, star defenseman Quinn Hughes, being traded to the Minnesota Wild last week.
Sources told ESPN that the Vancouver Canucks went to the Devils first in discussing trade destinations for Quinn Hughes, as his brothers Jack and Luke both play in New Jersey. Ultimately, the Canucks opted to trade Hughes to the Wild for center Marco Rossi, forward Liam Ohgren, defenseman Zeev Buium and a 2026 first-round pick.
“It happened fast,” Jack Hughes said, adding that there was a “little bit” of disappointment that the three brothers weren’t united together. “I think he’s happy in Minnesota now. They have a great team there, and they’re playing well. … We’re happy for him.”
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