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NCAA’s strongest argument might be cap limit

By WTOP Staff

MICHAEL MAROT
AP Sports Writer

INDIANAPOLIS (AP) — The NCAA’s best argument against the Ed O’Bannon ruling may be the financial limits imposed by U.S. District Judge Claudia Wilken — the same ones the NCAA lauded in her decision.

Less than two weeks after the court decision opened the door for college athletes to receive a small portion of the millions of dollars they help generate, several attorneys told The Associated Press they believe the NCAA should now attack that cap. Wilken ruled Aug. 8 that the NCAA violated antitrust law by restricting schools from providing money beyond current scholarship limits to athletes.

She said schools should be allowed to put up to $5,000 per year of competition into a trust fund for football players and men’s basketball players, money that could be collected once they are finished with school.

Legal experts question how she reached that number and wonder whether it will hold up on appeal.

“The cap is inconsistent with a judicial decision that the restraint (of trade) is unreasonable,” said Robert McTamaney, an antitrust lawyer with the firm of Carter, Ledyard & Milburn. “If the restraint is unreasonable out it goes, there’s no partial remedy under the Sherman Act and, frankly, judges aren’t supposed to construct one. Either it’s good or it’s not.”

Within an hour of the ruling, NCAA chief legal officer Donald Remy issued a statement noting that the governing body disagreed with the ruling but supported the cap. The NCAA, which faces a Wednesday deadline to appeal the decision, declined to comment Monday.

Wilken said she set the $5,000 annual threshold to balance the NCAA’s fears about huge payments to players.

“The number is immaterial, it’s the concept,” said Jim Ryan, an attorney at Cullen and Dykman. “It does seem rather arbitrary. Why isn’t it $3,000 or $10,000? She pulled the $5,000 somewhat out of the air, so it could be $3,000, it could be $10,000, what’s a few thousand?”

In October 2011, the NCAA Board of Directors approved a $2,000 annual stipend for athletes, legislation that was shelved when more than 125 schools signed on to an override measure. The five richest conferences are attempting to bring back the stipend now that they have been given autonomy over some of the trickiest issues in college sports.

McTamaney believes if the stipend were already in place and Wilken applied the same logic to the O’Bannon case, the NCAA might have already won in court.

Instead, the NCAA is headed back to a playing field where it has traditionally been successful.

According to a study released last month by Illinois professor Michael LeRoy, athletes suing the NCAA won 49 percent of the initial cases but the NCAA won 71 percent of the appeal in the second and third rounds.

This time, the governing body’s lawyers face a vastly different obstacle. The appeal, promised by NCAA President Mark Emmert, will be heard by the 9th U.S. Circuit Court, a venue that has a reputation for siding with labor. Remy has repeatedly said the NCAA will take this case to the U.S. Supreme Court if necessary.

If the ruling stands, some worry it could ruin non-revenue sports and others believe the NCAA could face additional litigation from female athletes who could argue they are not being compensated equally in violation of Title IX laws.

Still, NCAA critics contend Wilken’s decision didn’t go far enough in compensating players for the merchandise and video games that have produced millions in revenue for the NCAA and its members but not for the athletes themselves. Joseph Farelli, an attorney with Pitta & Giblin who specializes in labor law, argues there should be no cap at all. He’s not alone.

“I think how the court framed its injunction, exposed itself to some vulnerability,” said Jeffrey Shinder, managing partner of Constantine Cannon and a self-described NCAA critic who declined to go into specifics because he didn’t want to give the NCAA any advice.

Even NCAA supporters understand the rationale that if antitrust laws were broken, the players’ options should not be limited.

But they’re urging the NCAA attorneys to question Wilken’s reasoning in setting the cap and continue to argue that college sports will be damaged if players are paid.

“I think the key to this case is whether these restraints are reasonable or not. I personally think that they are,” McTamaney said. “If the athletes turn out to be compensated for their performances, the fan perception and alumni perception, I think, would be dramatically different. I think their support of the schools would decline significantly. And all of that sort of comes full circle, because if the restraints are substantial to keeping the fiction of the student-athlete, then they are reasonable.”

___

Online:

NCAA statement on appeal: http://www.ncaa.org/about/resources/media-center/press-releases/ncaa-will-appeal-o%E2%80%99bannon-ruling

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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