Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NCAA Facing Lawsuit Over the Value of Scholarships

Author: Scarinci Hollenbeck, LLC

Date: April 28, 2014

Key Contacts

Back

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.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Commercial Real Estate Trends to Watch in 2026 post image

Commercial Real Estate Trends to Watch in 2026

Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]

Author: Michael J. Willner

Link to post with title - "Commercial Real Estate Trends to Watch in 2026"
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know post image

One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know

Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]

Author: Scott H. Novak

Link to post with title - "One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know"
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know post image

One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]

Author: Scott H. Novak

Link to post with title - "One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know"
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business post image

New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]

Author: Dan Brecher

Link to post with title - "New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business"
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026 post image

How to Reduce Legal Risk as Your New Jersey Business Grows in 2026

For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]

Author: Ken Hollenbeck

Link to post with title - "How to Reduce Legal Risk as Your New Jersey Business Grows in 2026"
Crypto Investor Protection: SEC and CFTC Enforcement Trends post image

Crypto Investor Protection: SEC and CFTC Enforcement Trends

Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]

Author: Dan Brecher

Link to post with title - "Crypto Investor Protection: SEC and CFTC Enforcement Trends"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!