NCAA WARNS OF $4B DEATH KNELL IN NIL CLASS ACTION APPEAL

In the ongoing legal battle between college athletes and the NCAA, the case of In Re College Athlete NIL Litigation emerges as a potential game-changer. In a recent petition to the U.S. Court of Appeals for the Ninth Circuit, the defendants—comprising the NCAA and Power Five conferences—caution that a loss in this case could result in a staggering payout exceeding $4 billion in damages.

This class action, certified by U.S. District Judge Claudia Wilken, originated from a lawsuit brought by athletes Grant House, Sedona Prince, and Tymir Oliver, representing over 14,500 college athletes. The allegations focus on antitrust law violations, accusing the NCAA and Power Five of hindering athletes’ opportunities to benefit financially from broadcasting revenue, video game appearances, and Name, Image, and Likeness (NIL) endorsements.

NCAA WARNS OF $4B DEATH KNELL IN NIL CLASS ACTION APPEAL

The defendants are now seeking a permissive interlocutory appeal, a type of appeal before a final judgment. However, interlocutory appeals in class actions are seldom granted, as appellate courts typically prefer reviewing cases after the merits are fully determined.

The petition filed on November 17 ardently asserts that denying this appeal would be the “death knell” for the litigation, emphasizing the potential financial ramifications of a $4 billion-plus damages award. The defendants suggest that such a substantial award could force them to settle irrespective of the merits of the athletes’ claims, highlighting the economic threat it poses to the NCAA and Power Five.

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The petition criticizes Judge Wilken’s certification of the class, arguing that NIL issues are highly individualized and should not be consolidated into a class action. They contend that determining the economic value of an athlete’s NIL requires individual assessment. The petition also cites USC quarterback Caleb Williams, who questioned the fairness of a flat $500 fee offered to college football players by Electronic Arts for appearing in its game.