Potential Impact of Judge’s Decision in Antitrust Case Against NCAA Could Result in Billions in Damages

A federal judge has granted class-action status in the damages portion of an antitrust lawsuit against the NCAA. This decision could potentially lead to a multibillion-dollar payout to former and current college athletes.

The case, House vs. the NCAA, is being heard by Judge Claudia Wilken in the Northern District of California. Judge Wilken has previously ruled in NCAA cases that allowed college athletes to profit from their fame and for schools to provide more financial support to the athletes.

The lawsuit, brought by Arizona State swimmer Grant House in 2020, challenges the NCAA’s remaining name, image, and likeness compensation rules. The plaintiffs also include TCU women’s basketball player Sedona Prince and former Illinois football player Tymir Oliver.

If the NCAA loses the case, Judge Wilken’s ruling could make more than 14,000 current and former college athletes eligible to claim damages.

The athletes’ attorneys argue that those who were restricted from capitalizing on their fame before the lifting of the NIL (name, image, and likeness) ban in 2021 are owed damages for what they could have earned.

The plaintiffs’ attorneys are also targeting the billions of dollars in media rights revenue that the NCAA and the five wealthiest college sports conferences generate from football and basketball. They argue that the value of these deals is driven by the players’ names, images, and likenesses.

If the NCAA loses the case, it could result in professional-sports style revenue sharing of the multibillion-dollar television deals for college football and March Madness basketball.

“What we’re asking the court to do is to strike down all current prohibitions on NIL. The most significant one is the rule that prevents conferences from paying students for their NIL,” said Steve Berman, one of the lead plaintiffs’ attorneys.