California will allow college athletes to profit from endorsements under bill signed by Newsom (via Los Angeles Times)

Gov. Gavin Newsom has signed a bill that will allow California athletes to earn money from the use of their names, images and likenesses, despite warnings from the National Collegiate Athletic Assn. that the measure would upend amateur sports.

Senate Bill 206 by Sen. Nancy Skinner (D-Berkeley) garnered national attention, with athletes including NBA stars LeBron James and Draymond Green lauding the California effort to give college athletes a share of the windfall they help create for their universities and NCAA. The bill passed the state Legislature unanimously.

Newsom signed the bill on an episode of UNINTERRUPTED’S talk show The Shop with James, WNBA’s Diana Taurasi and former UCLA basketball player Ed O’Bannon, saying the new law addresses a “major problem for the NCAA.” . . .

The bill would prohibit the NCAA from barring a university from competition if its athletes are compensated for the use of their name, image or likeness beginning in 2023. NCAA rules strictly prohibit athletes from profiting in any way from their sports.

While the bill would allow athletes to sign endorsement deals with major companies, it would also open up smaller opportunities that were previously prohibited, such as paid youth coaching positions. SB 206 would still forbid schools from directly paying athletes.

The NCAA sent a letter to Newsom in September while lawmakers were mulling the bill, calling it “unconstitutional” and a “scheme.”

In September, a New York state senator introduced legislation similar to Skinner’s bill with the added provision that college athletic departments share 15% of annual revenue from ticket sales with student athletes. … Read More

(via Los Angeles Times)

Sports Law Roundup – 1/13/2017

aslr

I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.

Here are the top sports-related legal stories from the past week:

  • College football head injuries: A group of former Texas Tech, Oklahoma, and TCU football players has sued the NCAA and Big XII conference, alleging that those entities breached contractual obligations to warn players of and take adequate steps to prevent head injuries. The plaintiffs are seeking class action status, and their lawyer has said that he expects to file similar lawsuits on behalf of more players this year.
  • Olympic surveillance: Two years ago, the former mayor of Salt Lake City and six SLC residents filed a proposed class action against George W. Bush, Dick Cheney, David Addington, Michael Hayden, the FBI, and the NSA, alleging that the federal government improperly spied upon people attending the 2002 Winter Olympics. Now, a judge has denied the NSA’s motion to dismiss the case and will allow it to proceed.
  • Gymnast abuse: In more Olympic news, eighteen women sued USA Gymnastics, the national governing body for gymnastics in the United States; Michigan State University; and a gym in the Lansing area. Their complaint alleges that an affiliated doctor molested and sexually assaulted the plaintiffs, some of whom were as young as nine years old when the alleged attacks occurred, and that the defendants failed to act appropriately upon their knowledge of this doctor’s actions. This is the third civil action involving this doctor, and criminal complaints also have been filed. The FBI reportedly recovered child pornography from the doctor’s electronic devices and is in possession of video evidence of the doctor perpetrating sexual assaults.
  • Baseball land shark attack: The judge overseeing a dispute between the Miami Marlins and a fan who alleges she suffered a serious neck injury in 2013 when a shark mascot, following an on-field race with other mascots, leaned into the stands and pretended to bite her head has ordered the parties to participate in mediation in advance of the case’s June trial date.
  • Concert dodgers: A concert promoter sued the Los Angeles Dodgers and Guggenheim Partners, the entity that owns the team, because, the promoter alleges, they failed to pay him a share of the proceeds from concerts by Paul McCartney and AC/DC hosted at Dodger Stadium for his work in securing those performances. The promoter says he’s owed $2 million, while a leaked draft response from the defendants reportedly tells him to “forget about the check, we’ll get hell to pay.”
  • Sports gambling legalization: Legislators in South Carolina and New York separately proposed amendments to their state constitutions that would legalize sports betting. The South Carolina proposal would allow all forms of gambling, while the New York one would be limited to allowing sports gambling at racetracks and casinos.
  • Preemptive free agency: Last week, we highlighted an article suggesting that a California employment law could allow certain athletes playing for teams in that state to unilaterally opt out of long-term contracts and become free agents. High-profile baseball agent Scott Boras subsequently weighed in on the subject and counseled against the idea largely because the transactional costs of attempting the move (i.e., years of litigation) likely would outweigh– and, due to time delay, probably completely negate– any potential benefit to the player.
  • CTE: This also is not a legal news story, exactly, but this space has highlighted a number of sports-related head-injury lawsuits in the past, which makes sharing this compelling and well-told story of a young person’s struggles with CTE appropriate. If you only click through to one link in this post, make it this one.

Sports court is in recess.

Sports Law Roundup – 1/6/2017

aslr

I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.

Here are the top sports-related legal stories from the first week of 2017:

  • Baseball stadium funding: The Arizona Diamondbacks, seeking the right to “explor[e] other stadium options,” have sued the Maricopa County Stadium District after the District refused to authorize funding for the $185 million needed for capital repairs and improvements to Chase Field, which opened in 1998, according to an assessment completed by the District.The team has expressed willingness to cover all of the District’s expenses, but the District apparently must give its permission to proceed and thus far has declined to do so.
  • Student-athlete classification: In a case we have been monitoring in this space (here and here), the U.S. Court of Appeals for the Seventh Circuit has denied the request of a group of former Penn student-athletes for full-court (en banc) review of that court’s earlier rejection of their claim that they were employees entitled to minimum-wage compensation under the Fair Labor Standards Act. The denial of the request for further review leaves in place the court’s decision handed down last month. It is unclear whether the plaintiffs will request permission to appeal to the Supreme Court.
  • Daily Fantasy Sports: A DFS website argued that daily fantasy sports actually are illegal gambling in an attempt to avoid a $1.1 million lawsuit based on an advertising and sponsorship contract with the Minnesota Wild. I wrote more about this case here earlier this week. Meanwhile, a Maryland law authorizing the lawful, regulated conduct of DFS contests in that state, which is regarded as less restrictive than similar measures in other states, went into effect on Monday; a Florida legislator introduced a bill Wednesday that would declare DFS legal in that state; and FanDuel earned another win in a patent-infringement suit brought by two gambling technology companies in Nevada.
  • Preemptive free agency:  Nathaniel Grow has an interesting article on FanGraphs that illuminates a California employment law that could apply to allow even union employees like professional athletes to unilaterally opt out of long-term contracts after seven years of employment. This poses a potentially tantalizing, if legally unproven, opportunity for someone like Mike Trout, a generational talent not yet in his prime who likely could fetch an even more historically large contract were he to hit the open market now, at age twenty-five, rather than after the 2020 season, which is when his current contract ends.

Sports court is in recess.

NCAA Tournament: Day 1 Recap

spartyondrumsFor the most part, everyone did what they were supposed to do yesterday, with a few exceptions. Some of the highlights:

  • Despite some fight from Valparaiso and surrendering turnovers in spades, Michigan State pulled away to a win in the tournament’s opening game.
  • Newly anointed Gonzaga nearly blew their opportunity and almost became the first #1 seed to go down in the first round, escaping with a win over a Southern team that would not go away.
  • Harvard University, which has so little going for it, finally found some success in the realm of sport, securing its first tournament win with an upset of #3 New Mexico.
  • New Mexico State also lost yesterday, making this article really sad.
  • Colorado State’s win over continually hapless Missouri was a yawner…until it wasn’t!
  • When will we stop underseeding the Pacific Twelve? Oregon pulled one of the least surprising 12-5 upsets ever by knocking off Eddie Sutton-less Oklahoma State, while #12 Cal eked one out against #5 UNLV.
  • As usual, I got greedy with underdogs in the early rounds, so the dispatching of UNLV and Belmont wasn’t too kind to my ALDLAND bracket. (If you’re a junkie, you can see the updated standings here. We’ll do a deep analysis after the first two rounds are complete.)

On that last point, keep an eye on Ole Miss and Wisconsin today, outcome to be determined by the severity of Marshall Henderson’s inevitable hangover.