Monday, June 02, 2014

EA Paying Out NCAA

The case between Electronic Arts and former football and basketball players in the NCAA is drawing to an end. A $40 million settlement has been reached between the two parties, and EA will be paying up. Now that money will be used to pay for the NCAA's legal fees and the remaining split amongst 100,000 potential former college athletes. So really...the payout is pretty crappy.

Doing the math, even if the lead attorney for NCAA only took a 5% fee (attorneys are actually taking 33%), 100,000 players may get $200. Not 200 thousand, $200.00. Three athletes who were the primary fire starters named in the case will get $15,000, while others named and joined in later will receive anywhere from $2,500-$5,000. Good 10 years on a case well spent!

But it did bring up some very important issues that EA was skirting around for decades, regarding the likeness of a person being used in a product without their knowledge or compensation. It did cause developers to be more aware of the content they use. Which is good. And NCAA is shopping around for a new publisher for it's games, causing another ding in the money car that is EA.

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