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[Update] EA And Collegiate Licensing Company Settling Athlete Likeness Suit For $40 Million
Update: What was previously a report has now been confirmed by the attorneys handling the legal suit against Electronic Arts and NCAA Football. Lead plaintiff attorney for the case Michael Hausfeld said, "This is a historic settlement. This settlement represents an acknowledgment that the NCAA's rules barring payment to current and former players cannot stand."
Electronic Arts has agreed to pay "tens of millions of dollars" to the athletes featured in current NCAA Football video games, as well as previously released NCAA games.
Original story:
Yesterday, we reported that EA has decided to halt its NCAA Football series and that the publisher and the Collegiate Licensing Company are settling a suit with former college athletes. The lawsuit stems from the use of player likenesses in EA's college football titles.
According to the New York Times, the settlement is worth $40 million and will be used to compensate student-athletes. According to the report, there is no plan yet for how to divide and distribute the funds.
[Source: New York Times]
Our Take
The pressure is all on the NCAA right now, as that organization is the only defendant who hasn't settled. Should that group lose in court, it could very well imperil collegiate athletics as we know them. There could be remuneration required for previous student-athletes, and it will likely mean a structure in place for students moving forward.
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