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NCAA Facing Lawsuit Over the Value of Scholarships

Author: Scarinci Hollenbeck, LLC

Date: April 28, 2014

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The NCAA has been under fire recently

The organization is facing multiple lawsuits over its definition of amateurism and whether or not collegiate athletes are fairly treated.

Former University of Minnesota football player Kendall Gregory-McGhee recently added to the NCAA’s legal issues by filing a lawsuit claiming the value of scholarships is below the actual cost of living at universities, according to AL.com.

The main reason why this is such a hot topic is the fact that major collegiate athletic programs are bringing in tens to hundreds of millions of dollars each year from ticket and merchandise sales, among other things.

The Suit

If successful, Gregory-McGhee’s lawsuit – as well as the one filed by former West Virginia running back Shawne Alston – could change the NCAA as we know it. The days of amateurism could cease to exist and collegiate athletics could become a minor league of sorts for professional teams with compensated players.

Last week, the NCAA took a step to further “compensate” athletes by making unlimited food available. Previously, student athletes were only able to receive a “snack” in between meals, which once led to a violation because a player put cream cheese on his bagel – considered a meal under past NCAA rules.

Simple rule changes such as the food example are simple, as even NCAA President Mark Emmert agreed the fact that athletes couldn’t get a meal whenever they wanted was ridiculous. However, more significant changes could have much greater hurdles.

For example, Title IX would likely require female athletes be compensated the same as male athletes. But, how do you come up with a fair system while Division 1 football brings in millions while female track and field probably costs a university money?

It will be interesting to see if these lawsuits force the NCAA to change any additional rules, but you probably shouldn’t expect to see the downfall of amateurism any time soon.

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