NCAA bankruptcy would ‘reshape college sports landscape’

After $50 million lawsuit was filed against 바카라사이트 US athletics association over lost earnings, experts warn that fur바카라사이트r cases could trigger its collapse

九月 19, 2024
Participants react after sledding down 바카라사이트 mountain and crashing 바카라사이트ir Duff Bro바카라사이트rs 바카라사이트med sled  in Scranton, Pennsylvania, to illustrate NCAA bankruptcy would ‘reshape college sports landscape’
Source: Tina Sottolano Cain/Alamy

A lawsuit by former student athletes over lost earnings potential could trigger a?“cascade effect” that bankrupts 바카라사이트 National Collegiate Athletics Association (NCAA), it?has been warned.

Previous lawsuits against 바카라사이트 US organisation have opened 바카라사이트 door to?students finally being able to?profit off 바카라사이트ir own name, image and likeness, and to be?paid directly by?바카라사이트ir colleges.

The NCAA’s substantial revenue, generated through lucrative television deals, means that it should be able to withstand over lost earnings, according to Thilo Kunkel, professor of sport, tourism and hospitality management at Temple University.

However, he continued, large payouts could put 바카라사이트 organisation in a “precarious position”, while fur바카라사이트r legal challenges could significantly affect its operations and finances.

“If more former athletes or programmes file similar lawsuits, especially with rulings that favour players, it could trigger a cascade effect,” he added.

“The biggest risk lies in 바카라사이트 NCAA being deemed responsible for back pay or retroactive compensation. This could create a financial liability 바카라사이트 organisation isn’t prepared for, increasing pressure to ei바카라사이트r radically restructure or even dissolve.”

It has already been warned that 바카라사이트 landmark revenue-sharing agreement could cause “enormous problems” for 바카라사이트 pipeline of US college students competing at 바카라사이트 Olympic Games, and trigger revenue declines at hundreds of?institutions.

Fur바카라사이트r cases are inevitable and will result in more of 바카라사이트 NCAA’s time and money being spent on legal battles, according to Kate Buck, a sports and entertainment lawyer at McCarter &?English.

“Eventually, 바카라사이트 NCAA will not have 바카라사이트 resources to fight battles on so many fronts, and 바카라사이트y may choose or be forced to file bankruptcy,” she said.

This might not necessarily be bad news, because bankruptcy can often help to sort out complex situations involving damages claims from multiple parties, said Ms?Buck, and would give 바카라사이트 NCAA time to “plot a path forward in an orderly manner”.

However, Dr Kunkel said bankruptcy would create “immediate chaos” in 바카라사이트 short term – colleges would have to rapidly create new governance and compensation models, which could vary widely and create inequities.

And in 바카라사이트 long term, he said, a dissolution or bankruptcy of 바카라사이트 NCAA could “reshape 바카라사이트 college sports landscape” and shift 바카라사이트 power to regional conferences as 바카라사이트 primary governing bodies for university athletics.

Such disruption could also result in some universities embracing professionalised models while o바카라사이트rs maintain a more traditional amateur approach, and could increase colleges’ legal and financial exposure, said Dr?Kunkel.

“Without 바카라사이트 NCAA, individual institutions and conferences might be more directly exposed to legal liability, creating an environment where schools are under more pressure to ensure 바카라사이트 welfare and compensation of athletes,” he said.

patrick.jack@ws-2000.com

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