May 31, 2014, 1:10 PM EST
Video game manufacturer and NCAA licensing partner EA Sports has reached a $40 million settlement with college football and basketball players for improperly using the likenesses of athletes, according to a report from ESPN.com‘s Tom Farrey.
The settlement was reached with a federal court in Oakland, California on Friday night and it leaves the NCAA alone to defend itself in the upcoming antitrust trial spearheaded by former UCLA basketball star Ed O’Bannon.
The settlement could deliver up to $4,000 to as many as 100,000 current and former NCAA athletes who appeared in EA Sports college basketball and college football video games since 2003.
“I’m thrilled that for the first time in the history of college sports, athletes will get compensated for their performance,” said Steve Berman, co-lead counsel for the plaintiffs to Farrey. “It’s pretty groundbreaking.”
Berman represents former Nebraska and Arizona State quarterback Sam Keller and 77 percent of this latest proposed settlement would go to players represented by Berman. O’Bannon’s class of players would receive 12 percent of the settlement while former Rutgets football player Ryan Hart and former West Virginia football player Shawne Alston would receive the final 10 percent for their group of players.
O’Bannon, Keller, Hart, Alston and all other named plaintiffs will also receive payments between $2,500 and $15,000 for their time and efforts in representing the classes in the case.
The settlement still needs approval from U.S. District Court Judge Claudia Wilken, and if it is approved, the lawyers in the case will receive up to one-third of the settlement funds, or $13.2 million, plus a maximum of $2.5 million in legal fees.
If Wilken approves, former players in EA Sports video games since 2003 will be alerted to the availability of payments and will need to register to collect. Each player will use a formula based on how many years they appeared on rosters in EA Sports video games. Lawyers representing to plaintiffs estimate that there are approximately 140,000 to 200,000 annual roster appearances in all three classes.
Some current college athletes would also be due compensation under this proposed settlement and the legal outcome creates a new dilemma in the NCAA’s quest to keep athletes from profiting from the use of their images as athletes.
An agreement in principle happened last September through Electronic Arts and the Collegiate Licensing Corporation, but issues held up the proposed settlement. The NCAA objected to their co-defendants leaving and the lawyers representing the three different classes of players couldn’t agree on the financial aspect.
In September of 2013, EA Sports announced that it’s college football series would be placed on hiatus with no new game coming in 2014 while EA hasn’t made a college basketball video game since NCAA Basketball 2010.
This is a landmark settlement as college athletes look like they’ll finally claim some money for their NCAA likenesses appearing in video games and it sets up an interesting court battle between O’Bannon and the NCAA in the upcoming antitrust lawsuit that is scheduled to begin on June 9th.
Jan 25, 2015, 10:35 PM EST
Northwestern has lost its last three games by a total of five points.
Jan 25, 2015, 9:36 PM EST
Lucas Siewert joins small forward Brendan Bailey as Arizona State’s second four-star verbal commitment in the 2016 class.
Jan 25, 2015, 7:00 PM EST
Eight days after attempting 25 three-pointers in their loss to No. 5 Duke, the Cardinals attempted just 12 and scored 40 points in the paint against Pittsburgh.
Three-pointer with 5.2 seconds remaining completes second-half rally for No. 20 Northern Iowa (VIDEO)
Jan 25, 2015, 6:24 PM EST
UNI erased a 12-point second half deficit to win at Illinois State, and they remain a game behind No. 14 Wichita State in the Missouri Valley standings.
Jan 25, 2015, 5:38 PM EST
Chris Perry leads the Bulls in rebounding, and chest pains suffered during the team’s workout Saturday resulted in his having to be hospitalized.
Jan 25, 2015, 5:09 PM EST
Also of note on Sunday was Ohio State picking up its first RPI Top 50 win of the season, and both No. 8 Notre Dame and No. 13 Maryland coming back from double-digit deficits.
Jan 25, 2015, 4:13 PM EST
Duke head coach Mike Krzyzewski picked up career win No. 1,000 as the No. 5 Blue Devils bested St. John’s.
Jan 25, 2015, 2:30 PM EST
Well-traveled former Ole Miss guard Derrick Millinghaus has found a new home.
Jan 25, 2015, 1:21 PM EST
Kentucky is on the board in the 2016 class with a highly-touted big man from New Zealand.
Jan 25, 2015, 1:00 PM EST
A former four-star prospect is heading to Rhode Island.
Jan 25, 2015, 12:00 PM EST
A former Miami point guard is finding tremendous success on the football field and is a even being talked about as a first-rounder in the 2015 NFL Draft.
Jan 25, 2015, 10:10 AM EST
One of the best big men in the 2016 class could decide between three powerhouse programs on Sunday.
Jan 25, 2015, 9:00 AM EST
Coach K goes for win No. 1,000 against St. John’s and a fun battle of elite freshmen guards in the Big Ten are Sunday’s highlights.
Jan 25, 2015, 1:05 AM EST
I feel comfortable saying I’m a better dancer than Josh Pastner. Not by much, though.
Jan 24, 2015, 11:58 PM EST
Get caught up on everything that has happened in college basketball on Saturday.
Northwestern State staff wears special pants for ‘Suits and Sneakers’ game against McNeese State (PHOTO)
Jan 24, 2015, 11:34 PM EST
The pants worn by the coaching staff were one of the highlights in Northwestern State’s 92-68 win over McNeese State.
Jan 24, 2015, 9:31 PM EST
Crawford and his teammates are looking to rebound from the 18-point loss they suffered at Tulsa Wednesday night.
Jan 24, 2015, 9:20 PM EST
Peel finished the game with 17 points, 13 rebounds and five blocks as the Blue Devils picked up their first win in NEC play.
Jan 24, 2015, 8:34 PM EST
Baylor really needed this win, but Oklahoma has now lost three of their last four.
Jan 24, 2015, 7:20 PM EST
The Tribe bounced back from a loss at Delaware earlier in the week to move into a tie for first in the CAA.
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