Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm 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.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
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.