Oliver vs NCAA Settled
October 12th, 2009 - byLast week the NCAA agreed to pay former Oklahoma State pitcher Andrew Oliver $750,000 to settle the case he filed challenging the NCAA’s rule banning players from using legal advisers in contract negotiations with professional teams. Richard G. Johnson, Oliver’s attorney, wrote NCSA to air his view on the settlement and the NCAA.
Apart from class actions, I’m not aware of another student-athlete who won a declaratory judgment or permanent injunction, or who has prevailed on liability on one of our two jury counts, and I’m not aware of another individual student-athlete that the NCAA has settled with for any amount of money let alone a substantial amount of money.
In regards to the obvious question: What this means is that there is no declaratory judgment now against the NCAA invalidating its Bylaws 12.3.2.1 or 19.7.
So the NCAA can continue to act with its typical arrogance and try to continue to deny student-athletes the right to counsel, or it can realize that it will lose 100/100 of any such future lawsuits over this rule, since no court is going to allow the NCAA to regulate lawyers or prohibit nonmember student-athletes from retaining counsel (Can you imagine what would happen if they had a rule that its members couldn’t have counsel when negotiating their media rights?). As has been reported recently, the NCAA has sent out a baseball questionnaire to student-athletes who were drafted, but who did not sign, and this questionnaire goes beyond even the bad-faith the NCAA evidenced towards Andy. No student-athlete legally has to respond to this inquiry, but we’ll see if they are bowed into submission or whether someone decides to challenge this new affront to student-athlete rights.
Since I represent Andy, I had to do what was in his best interest, and without a settlement here, we would have won the trial, and probably received a very large verdict, in my opinion, and then we would have been stuck in 3-5 years of appellate hell. Andy needed to move on with his career and life, and to do so, the NCAA was able to “extort” its way back to the status quo–which it can only do, because no one regulates it as a nonprofit unincorporated association with a $20MM annual legal budget that it spends to beat up on student-athletes and anyone else that dares to challenge it. In fact, the NCAA is the only unregulated monopoly in the United States. Until Congress gets involved, decides to regulate undergraduate sports and the NCAA, and passes a national Student-Athlete Rights Act, the kids will continue to be mistreated by the NCAA as well as by its member colleges and universities, who at the Division I level hide behind “amateurism” while chasing the mighty dollar as fast as they can (See Myles Brand’s quote in the April 2nd U.S.A. Today, I believe, but I don’t have it in front of me, about how the NCAA wanted to compete with the professional sports leagues for revenue.). For instance, the NCAA Eligibility Center, LLC is now a for-profit, wholly owned subsidiary of the NCAA, which is now making money off of the NCAA’s supposed tax exempt purpose! I could think of a thousand more hypocrisies within the NCAA. Why is this allowed? Why, apart from an historical accident, does the NCAA have tax-exempt status as a 501(3)(c), when it acts like a trade association for its members, when its primary purpose by revenue is to, well, generate revenue, and when its spends less than 5% of its budget on its tax-exempt purpose, as far as I can tell from its IRS Form 990 filings (it spends more than this on executive salaries and private jet service)?
I’ve got plenty to say on the topic, but the NCAA is a billion dollar bully, we could not fight this battle alone forever, nobody came to our aid, and so we did what was in Andy’s best interests, which, unfortunately, is not in the best interests of the other 360,000 or so student-athletes nationally, which I regret.