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M Business 5th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell
Edition 5ISBN: 978-1259578144M Business 5th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell
Edition 5ISBN: 978-1259578144 Exercise 4
The National Collegiate Athletic Association(NCAA) was founded in 1905 to serve as a national regulator and organizer of college football in the United States. It has around 1,100 member schools and regulates a wide variety of intercollegiate sports.
Since its founding over a century ago, the NCAA has refused to allow student athletes in its sports to be paid other than through academic scholarships. This is true even though the organization and its member colleges make millions of dollars off licensing top players' names, images, and likenesses for use in television, videogames, and other media. The NCAA's continuing stance has been that college athletes are "amateurs," and to pay them would destroy the pure competitive spirit and nonprofessional nature of college sports.
In August 2014, a California federal district court judge struck down this long-standing practice, finding it violated federal anti trust laws. The judge ruled that starting July 2016,the NCAA must allow member colleges to create trust funds for student athletes where a portion of their licensing revenue can be deposited and later accessed by them after graduation. The NCAA may cap the amount each student makes at $5,000 per year, but that still adds up to hundreds of millions in revenue potentially redirected back to the players.
The NCAA is in the process of appealing the decision and may also seek a special congressional exemption from anti trust laws (Major League Baseball enjoys a similar exemption). If the decision stands, however, only time will tell how the ruling will affect the NCAA and the atmosphere of college sports in general. 12
Why has this issue become such a controversial topic?
Since its founding over a century ago, the NCAA has refused to allow student athletes in its sports to be paid other than through academic scholarships. This is true even though the organization and its member colleges make millions of dollars off licensing top players' names, images, and likenesses for use in television, videogames, and other media. The NCAA's continuing stance has been that college athletes are "amateurs," and to pay them would destroy the pure competitive spirit and nonprofessional nature of college sports.
In August 2014, a California federal district court judge struck down this long-standing practice, finding it violated federal anti trust laws. The judge ruled that starting July 2016,the NCAA must allow member colleges to create trust funds for student athletes where a portion of their licensing revenue can be deposited and later accessed by them after graduation. The NCAA may cap the amount each student makes at $5,000 per year, but that still adds up to hundreds of millions in revenue potentially redirected back to the players.
The NCAA is in the process of appealing the decision and may also seek a special congressional exemption from anti trust laws (Major League Baseball enjoys a similar exemption). If the decision stands, however, only time will tell how the ruling will affect the NCAA and the atmosphere of college sports in general. 12
Why has this issue become such a controversial topic?
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Case Summary:
The NCAA is an associatio...
M Business 5th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell
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