Student Athletes Sue NCAA For Profits From Their Images

Headline Legal News

Courthouse News is reporting that the National Collegiate Athletic Association forced thousands of student athletes to sign away rights to their own images and cheated them of a share in the profits from DVD and video game sales, according to an antitrust class action in Federal Court. Led by former UCLA basketball star Edward O'Bannon, the class claims the NCAA forced students to sign the misleading "Form 08-3a" if they wish to play NCAA sports, which "commercially exploits former student athletes" by giving the NCAA the right to profit from their images without compensation, long after the athletes have left school.

The attorney for Edward O'Bannon, Jon King, believes athletes sign under duress and forms are not explained adequately.

"The athletes are herded into a room and given forms to sign. No one explains anything, there are no lawyers and no one has any idea what's going on. But they sign because they just want to play ball," he said.

The NCAA has acknowledged that student athletes possess a right of publicity. In a September 2008 statement on why the NCAA would not sue CBS over its use of college player information, NCAA President Myles Brand wrote, "In the case of intercollegiate athletics, the right of publicity is held by student-athletes, not the NCAA. We would find it difficult to bring suit over the abuse of a right we don't own."

King believes the NCAA did not expect old players to take action against this statement.

The complaint seeks health insurance for players as well as "additional education or vocational training and pension plans to benefit former student athletes."

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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