EA Sports Student Athlete Settlement Could Cost $40 Million

EA Sports Student Athlete Settlement Could Cost $40 Million

EA Sports

Electronic Arts could pay as much as $40 million to a potential 100,000 student athletes according to the terms of a recently revealed settlement.

For a long time, Electronic Arts and the College Licensing Company were on the winning side of an arguably lousy deal. EA would make millions selling games featuring the names and likenesses of student athletes, while said athletes wouldn't receive a dime for it. That arguable exploitation would, in turn, lead to several lawsuits from understandably miffed sports players who weren't too keen on the whole "raking in dough with my name thing." Said lawsuits came to a close last year after EA and the CLC agreed to settle with the aggrieved players. Now, the potential terms of said settlement have been revealed.

According to reports, EA and the CLC could wind up paying a proposed $40 million to more than 100,000 student athletes who have had their likeness used in NCAA video games. Among those potentially eligible for the settlement are 7,000 current student athletes. The inclusion of current athletes could pose a problem for the NCAA which still imposes a rule banning student players from earning money from their sports activities, though there has been some recent precedent moving away from that.

The amount paid to each athlete, in turn, may vary depending on several factors. While several of the central plaintiffs will receive larger amounts, other players could receive smaller or larger rewards depending on how many eligible athletes opt into the case. Likewise, the amount of each individual payout will vary depending on how many games a player was featured in and during what time period said games were released. Attorneys estimated, for instance, that athletes who appeared in NCAA titles between 2003 and 2005 could receive between $96 and $517 per game.

If "a certain number" of players opt out of the settlement, meanwhile, EA has the option of cancelling it. While we imagine that the potential for more money might convince some to push for a better deal, we somehow suspect the draw of quick cash will keep that from being an issue.

Source: CBS Sports

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None of that money will be coming out of the pockets of EA's executive for sure. The consumers and EA's employees will be biting that bullet.

400$ per student on average if it was evenly split amongst the 100,000 potential individuals. That's pathetic. But at the same time, I ask myself how there can be 100,000 players between everything. Shows what I know eh?

evilnancyreagan:
None of that money will be coming out of the pockets of EA's executive for sure. The consumers and EA's employees will be biting that bullet.

Yeah, that's kind of the depressing thing isn't it? EA will tear their own company apart before giving up so much as a penny of their beloved money.

Well...I hear employees at that company are overworked anyway. Odds are they'll be happier seeking employment elsewhere.

this is good news. not because i hate EA, i mean, i DO, i'm only human (as far as i'm aware...) but it's good news because it's ending the exploitative nature of college sports and specifically in THIS case, college sports games.

also, why is the P black in the middle on that logo? it's doing some serious damage to my world view.

why is Captcha trying to sell me used vehicles? i mean, someone DID hit my car today, but captcha couldn't know that, could it? ... ...

...

could it?

I'm personally hoping for a mob of 100K college athletes to stampede EA's home officer building. I know that means EA would have to piss them all off more, but there is a possible chance of them doing that, and...I'd like to see them run down like a orcs from the Riders of Rohan.

Though yeah, if both the likeness and the names are being used, I would only think it's fair that they would get paid atleast a bit. Unless a contract/agreement with both EA and the students would say otherwise. I dunno how that is formed so I don't gonna go into that.

An average of $400 per student is insulting to be frank. These kids likely already sustained permanent brain damage as a result of their "scholarship" and they get $400 for their pain? What is this, the 1920s? EA can find $40M in their couch cushions. This is why these lawsuits are so skewed toward the defendant - even if the claimants win, they still lose because nobody does the math. They just see the big number and say "We're punishing the big company for their hubris. It's a symbolic win." I'd prefer an actual win to symbolism.

EA shoud be forced to pay more money then they made of making those games, insted this is just a minor cost, but if it actual hurt them, they and others woud think a second time before doing this, also the CLC/NCAA shoud pay also.

Tigurus:
Unless a contract/agreement with both EA and the students would say otherwise. I dunno how that is formed so I don't gonna go into that.

The NCAA prohibits student athletes from making money for their playing, but that's bullshit and blatant exploitation since college sports is essentially a multi-billion dollar industry built on the backs of hard working kids that don't get any actual financial compensation for their efforts, and aren't even supposed to make money from things like this when their name and likeness is used.

Anyone else annoyed at the logo's letter P having a black hole in it?

Other wise, only $40mil? I don't make more than $20k a year, but, $40mil seems kind of small compensation when you do the math breakdown between 100k players.

As other comments have said, the NCAA is a multi-billion dollar industry making money off people who are forbidden to get paid for their work.

Vivi22:

The NCAA prohibits student athletes from making money for their playing, but that's bullshit and blatant exploitation since college sports is essentially a multi-billion dollar industry built on the backs of hard working kids that don't get any actual financial compensation for their efforts, and aren't even supposed to make money from things like this when their name and likeness is used.

Seriously American players get the royal screw, I thought America had banned exploitation that's practically slave labour, how do they get away with this?

To be fair, the players aren't getting completely screwed over by the colleges; any athlete that would be able to make any money is very likely getting a free education. On the other hand though, I went to a D1 university and had a couple of classes with some football and basketball players, and they were far from "educated". It's kinda sad, but from my experience I'd say that a lot of D1 college athletes disregard their studies and are just banking on being able to get into the pros (for the sports that this is possible at least; I would imagine/hope that track & field, wrestling, volleyball, etc. athletes put more focus on their studies).

I think the that EA better dig bloody well deep, modern day slavery.

OT: Whats with the logo? that the best one you could find?

 

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