A federal judge ruled Friday that the NCAA’s rules prohibiting athletes from being paid for use of their names, images and likeness violate antitrust law. The ruling in the five-year case of the Ed O’Bannon lawsuit allows for trust funds to be established for athletes to share in licensing revenue.
In a 99-page opinion, U.S. District Judge Claudia Wilken issued an injunction “that will enjoin the NCAA from enforcing any rules or bylaws that would prohibit its member schools and conferences from offering their FBS football or Division I basketball recruits a limited share of the revenues generated from the use of their names, images, and likenesses in addition to a full grant-in-aid.†Wilken said the injunction will not prevent the NCAA from implementing rules capping the amount of money that may be paid to college athletes while they are enrolled in school, but the NCAA will not be allowed to set the cap below the cost of attendance.
The injunction will also prohibit the NCAA from “enforcing any rules to prevent its member schools and conferences from offering to deposit a limited share of licensing revenue in trust for their FBS football and Division I basketball recruits, payable when they leave school or their eligibility expires,†Wilken wrote. Her injunction will allow the NCAA to set a cap on the money held in that trust, but prohibits the NCAA’s cap to be less than $5,000 for every year an athlete remains academically eligible to compete.