- NCAA. Deion Sanders and Shilo Sanders address the rumors surrounding the bankruptcy case
- NCAA. Duke freshman Cooper Flagg shines in scrimmage against Team USA stars
In a landmark decision, a U.S. appeals court has ruled that college athletes whose efforts primarily benefit their schools may qualify as employees entitled to pay under federal wage-and-hour laws. This ruling poses a significant challenge to the NCAA's long-standing concept of "amateurism" in college sports.
The court highlighted the need to develop a test to differentiate between students who play sports for fun and those whose efforts legally constitute work. U.S. Circuit Judge L. Felipe Restrepo stated, "With professional athletes as the clearest indicators, playing sports can certainly constitute compensable work."
"Ultimately, the touchstone remains whether the cumulative circumstances of the relationship between the athlete and college or NCAA reveal an economic reality that is that of an employee-employer," said the judge.
The case, which had been dismissed by a district judge, will now return to the trial judge for further fact-finding. The NCAA, which had sought to have the case dismissed, expressed concerns that treating athletes as employees could negatively impact student-athletes' experiences and opportunities, especially in women's sports and smaller school programs.
The NIL ruling paved the way
This ruling follows a 2021 Supreme Court decision that led the NCAA to allow athletes to profit from their name, image, and likeness (NIL). In May, the NCAA announced a nearly $2.8 billion revenue-sharing plan, potentially directing millions of dollars to athletes. Despite these advancements, the key issue of whether college athletes are employees entitled to direct pay remains unresolved.
The plaintiffs, Division I athletes, and former athletes are seeking modest hourly wages comparable to those earned by peers in work-study programs. Lawyer Paul McDonald, representing the plaintiffs, noted, "This notion that college athletes cannot be both students and employees is just not accurate when you have student employees on campuses."
The NCAA has been expanding core benefits for athletes, including healthcare and career preparation. However, the organization compares athletes to students who participate in theater groups and orchestras without pay, a comparison McDonald disputes "The most controlled kids on any campus are the student-athletes," the lawyer stated earlier this year.
Universities see potential danger
Baylor University President Linda Livingstone, chairperson of the NCAA's Board of Governors, warned that treating student-athletes as employees could have a "sprawling, staggering and potentially catastrophic impact on college sports broadly. We need Congress to affirm student-athletes' unique relationship with their universities."
The relationship between college athletes and their schools has faced increasing scrutiny, with players demanding a fair share of the revenue generated by college sports. In 2021, a top lawyer for the National Labor Relations Board suggested that college athletes should be treated as school employees.
The unanimous Supreme Court decision allowing NIL payments criticized the NCAA for building a "massive money-raising enterprise on the backs of student athletes who are not fairly compensated," as Justice Brett Kavanaugh wrote in a concurring opinion. As the case progresses, the court's ruling could significantly alter the landscape of college athletics and the compensation of student-athletes.