NCAA Settles Lawsuit with Student-Athletes

While dishing out big hits on the field, players may be taking big hits in their wallet.

The NCAA settled a class-action lawsuit last week brought by former scholarship athletes who claim their educational expenses were not fully covered. Forget the ongoing debate over how much schools profit and whether players should be better compensated. These guys just wanted to break even.

"A full scholarship at every school falls short by $2,000 to 3,000 per year," said former UCLA linebacker Ramogi Huma, president of the National College Players Assn. (NCPA). Those extra expenses can include the real costs of attending school, from toothpaste to transportation. "They [NCAA officials] have admitted it, but it's something they don't advertise."

According to Huma and documents released by both sides, the players won a number of concessions in the settlement:

The Student-Athlete Opportunity Fund, which the NCAA uses to reimburse players for various expenses related to their education, was increased by $218 million. This money will help students with costs like medical insurance premiums, clothes, and "other personal and family expenses." The fund's estimated total for 2007-2013 is now over $445 million. Players must apply for aid through their school.
All limitations on health care, as provided by a student-athlete's school, have been lifted. Schools are not required, but may choose to cover all year-round health care expenses for their players.
A $10 million fund has been established to help pay for educational and career development expenses, but only for certain football and basketball players who recently exhausted their playing eligibility. Full details are available on the NCAA website.

The NCAA declined to discuss specifics but did issue a written statement. President Myles Brand said, "It is the NCAA’s intention to help meet any true additional needs of its student-athletes."

Under NCAA bylaws, student-athletes are allowed to have outside jobs and take out certain kinds of loans, but may not receive any extra consideration because of their status as an athlete. A few notorious violations have occurred involving players being compensated at an outrageous rate or being paid for work not performed.

For the vast majority of student-athletes, it's already a tough load being a full-time student and dedicating as much as 20 hours per week to their sport. A low-paying, part-time job isn't an easy solution. Now that more support is available, the NCPA hopes to raise awareness among student-athletes and ensure that these funds are used before they expire. Some application deadlines are only a year away.

-- Adam Rose