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NFL Free-Agent Lawyer to Unlock $16 Billion in NCAA Athletes

http://www.bloomberg.com/news/2013-10-02/nfl-free-agent-lawyer-set-to-unlock-16-billion-in-ncaa-athletes.html

Jeff Kessler, an attorney who helped bring free agency to the National Football League, is about to focus on the unpaid athletes who generate more than $16 billion in college sports television contracts.

New York-based Winston & Strawn LLP is starting what it describes as the first college-focused division at a major law firm to represent players, coaches, schools and conferences against what Kessler, 59, described as “the unbridled power and influence” of the National Collegiate Athletic Association.

“The NCAA should stand up and take notice that Jeff is involved,” said Bob Lanza, a former National Basketball Association players’ union general counsel who worked alongside Kessler and is now a partner in O’Neill & Lanza, a professional sports advisory firm. “I can’t think of anybody more qualified to start this type of department.”

Ed O’Bannon, a former basketball All-American at UCLA who is suing the NCAA over the use of his image in commercial ventures, reacted to the news by saying: “Wow! Jeff Kessler.”

College athletes, past and present, are taking increasingly vocal, visible and litigious steps against what they consider to be unfair rules set by the NCAA, which doesn’t permit athletes to be paid. The agency faces lawsuits by former players that could seismically alter the sports landscape and, according to Steve Berman, managing partner of the Seattle-based law firm Hagens Berman Sobol Shapiro, dissolve the 107-year-old governing body of college athletics.

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‘Huge’ Addition

Kessler’s addition to the college scene is “huge,” O’Bannon, now selling cars in Las Vegas, said in a telephone interview.

“If players coming out of high school had some type of representation, or if somebody like Jeff initially made sure the players are represented in the right fashion, where both parties are happy with the deal, then a lot of this stuff wouldn’t even happen,” he said.

The plaintiffs in the likeness case say a victory over the NCAA could reduce the $6.4 billion in annual revenue universities earn from athletics by as much as 50 percent. Moody’s Investor Service said in June that it may downgrade $40 million of NCAA debt because of pending litigation and concern that the amateur business model will be changed in some unknown way.

“Even a casual observer of college sports senses a growing pressure on the NCAA and its policies,” Dennis Gephardt, lead analyst of the public finance group at Moody’s, said in a telephone interview.


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NCAA Revenue

The NCAA had $841 million in revenue in fiscal 2011-12. About 84 percent comes from its 14-year, $10.8 billion men’s basketball tournament television contract with Time Warner Inc.’s Turner Sports and CBS Corp. Walt Disney Co.’s ESPN agreed to pay more than $5.5 billion over 12 years for the right to broadcast college football’s playoff, which begins after the 2014 season. The Dallas Cowboys’ AT&T Stadium in Arlington, Texas, will host the inaugural championship game, and eight cities and regions from San Francisco to South Florida entered bidding two days ago to stage the following two title contests in a process akin to cities wanting the Super Bowl to visit.

Football makes more money than any other college sport, generating median revenue of $18.6 million, about three times that of basketball, according to NCAA statistics. The sport was at the center of two years of conference shuffling, with schools leaving traditional geographic alignments to form leagues sometimes reaching from coast to coast. The realignment isn’t over, said Williams, the Marquette athletic director.

“My sense is the biggest change will center on how universities affiliate based on their ability to fund their programs,” he said. “Some programs rise and some fall.”


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Lawyer Jeff Kessler to Reportedly Create Firm Representing College Athletes


http://bleacherreport.com/articles/1795020-lawyer-jeff-kessler-to-reportedly-create-firm-representing-college-athletes


Jeffrey Kessler, a high-profile antitrust lawyer best known for bringing free agency to the NFL, is on the precipice of embarking on an endeavor that may bring similarly sweeping changes to college athletics.

Winston & Strawn LLP, a New York law firm where Kessler serves as a partner and member of the executive committee, is on the verge of starting a law firm to help those within college athletics recoup money the NCAA makes from television contracts, according to Scott Soshnick of Bloomberg.

The yet-to-be named branch won't just be representing players. It will represent NCAA member conferences, coaches and the schools themselves to protect against what Kessler calls “the unbridled power and influence” of college sports' governing body.

Kessler plans to focus particularly on the $16 billion the NCAA rakes in from television contracts. College football and college basketball—specifically the NCAA tournament—represent a lion's share of that sum.

“The NCAA should stand up and take notice that Jeff is involved,” Bob Lanza, a former National Basketball Association players’ union general counsel, told Bloomberg. “I can’t think of anybody more qualified to start this type of department.”

Although his speciality is in antitrust law, the 59-year-old Kessler has become a notable fixture in many disputes between sports unions and their league. He counts the NBAPA and NFLPA as clients and has worked with members of the NHLPA and MLBPA in the past.

Kessler was the main litigator for the NFLPA in McNeil v. NFL, the landmark case that opened free agency across the NFL. He also worked with the NFLPA during the 2011 lockout, serving as the primary litigator in Brady v. NFL. That antitrust case is regularly credited with catalyzing the end of the lockout.

Although there is no word on how close Winston & Strawn LLP are to creating this new branch, having such a high-profile attorney spearheading the cause could be yet another critical blow for the NCAA.

Donald Remy, the NCAA legal chief, told Steve Berkowitz of USA Today earlier this week that the organization had no interest in settling a case filed by former basketball player Ed O'Bannon and many other former and current athletes over the illegal use of their likeness. Co-defendants EA Sports and Collegiate Licensing Co. settled their dispute with the former UCLA forward's team late last month.

“If players coming out of high school had some type of representation, or if somebody like Jeff initially made sure the players are represented in the right fashion, where both parties are happy with the deal, then a lot of this stuff wouldn’t even happen,” O’Bannon said.

It's unclear how Kessler plans on going about recouping compensation at this time. But it is clear that uncertain times for the NCAA just got a whole lot more disconcerting.

EddieJonesFan wrote:I think this is awesome. It's their names and likenesses, the NCAA has no right to just steal it from them and sell it for a **** ton of money.

Damon_3388 wrote:So it's not enough that they get their food, board and education paid for, and receive guaranteed national exposure to high-paying future employers, they want to be paid on top of that too? Come on...

Iplaytolose wrote:So for instance, if you were an ex-NCAA athlete, and the NCAA used your name to make a profit after the fact, you would be perfectly fine with them doing so? Would you be okay with someone taking complete credit of your work without getting anything for it? I don't know how anyone can be okay with what the NCAA goes about their business.

Damon_3388 wrote:

Iplaytolose wrote:So for instance, if you were an ex-NCAA athlete, and the NCAA used your name to make a profit after the fact, you would be perfectly fine with them doing so? Would you be okay with someone taking complete credit of your work without getting anything for it? I don't know how anyone can be okay with what the NCAA goes about their business.

How are/have the NCAA used O'Bannon's name after his college career was over to make profit, exactly?

Iplaytolose wrote:I wasn't speaking about O'Bannon specially, hence I didn't mention him in my post. I'm speaking from a general perspective, which is what this is about; how the NCAA does its business.

Now answer my question: would you be okay with bigwigs making millions, already on top of the millions they already have, off your name while you don't get anything from that profit?

Ayt wrote:It is mind boggling anyone would think that is a fair trade.

Damon_3388 wrote:

Ayt wrote:It is mind boggling anyone would think that is a fair trade.

So free food, board and education (all given to scholarship holders), and guaranteed national exposure to high-paying future employers (the NBA, Europe) and top "job training" (coaching) isn't enough? Please... It's a whole lot more than the average college kid gets, and it's a great head start in life for any young person.

NO-KG-AI wrote:Yea, but the average college kid doesn't bring in nearly the revenue that the athlete does, so it's not an analogous trade off.

NO-KG-AI wrote:YThis, like most things in life is just designed so the rich can get richer.

NO-KG-AI wrote:The NBA and the NCAA have created a system where you HAVE to play in the NCAA more or less, but you don't get paid. It's ridiculous. They aren't getting scholarships, and aren't getting better coaching than they would receive at the next level.

I think paying students would benefit everyone. Raw players wouldn't be forced to try and jump to the NBA for a pay day, and college basketball would actually get to keep the great prospects for more than 1 season.

Aren't the "best and the brightest" already a commodity to universities? Better players get into better schools and will get a better pay. If a school doesn't want to pony up the dough necessary, kids are going to go elsewhere, as it should be.