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Student-Athletes Benefit from Lawsuit
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Student-athletes could see enhanced financial aid following the settlement of a class action lawsuit. (File Photo)
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Student-athletes at universities across the country, including at
the University of San Francisco, are benefiting from the outcome of a
lawsuit initiated by Dan Rascher, USF associate professor of sport
management.
The class action lawsuit, which was settled earlier
this year, allows universities to enhance the financial aid available
to certain former, current, and future student-athletes.
Under the terms of the settlement:
- The NCAA will provide, for the academic years 2007-08 through
2012-13, an additional $218 million to NCAA Division I member
institutions.
- The NCAA will provide a total of $10 million over a three-year
period, to be distributed to former student-athletes for reimbursement
of certain educational expenses incurred in the future.
- The NCAA adopted a rule permitting Division I schools to provide year-round comprehensive health insurance to student-athletes.
- The NCAA will investigate the possibility of offering student-athletes multiyear scholarships and aid through graduation.
- Arrangements were made under which the NCAA’s Division I
member schools can provide basic accident insurance for injuries
sustained by student-athletes while participating in college athletics.
The idea for the lawsuit first came about while Rascher was working
for an economic consulting firm in 1999. He had already begun taking an
interest in sports economics when a colleague noticed how much college
football coaches made, a stark contrast to the reality that
student-athletes are not paid. NCAA rules prevent universities from
paying athletes, and although they are allowed to award scholarships to
athletes, the money often doesn’t cover all of an athlete’s true costs
of attending school. Emergency trips back home, for example, must be
paid for out-of-pocket. Such discrepancies made Rascher and his
colleague realize how unfair the rules were.
“We just knew the
economics were there (for a lawsuit),” Rascher said. “We just realized
there’s a lot of money being made by college sports, by everyone other
than the athletes.”
Rascher and his colleague shopped the case
around and eventually found Los Angeles-based law firm Susman Godfrey.
The firm then found several student-athletes willing to serve as
plaintiffs in a suit against the NCAA. Because universities follow the
regulations set by the NCAA, suing the NCAA made more sense than going
after individual universities, said Rascher, who helped provide
behind-the-scenes analysis for Susman Godfrey.
At USF, the
settlement means the university can offer additional money to
student-athletes for particular needs, including emergencies and
academic-related purposes, said USF Athletics Director Debi Gore-Mann.
“I think it has had a positive impact,” Gore-Mann said. “It’s definitely had a real impact.”
Although
the $218 million set aside as part of the settlement is less than
Rascher had hoped, he’s pleased the lawsuit prompted some action and
encouraged discussion about the broader issue of student-athletes and
pay. The case has also become a teaching tool in his classes.
- Originally posted March, 26, 2009 -
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