Money Minute: Ex-College Player Sues NCAA, Wants to Get Paid

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A trial begins today that could change the landscape of college sports.

Former UCLA basketball star Ed O'Bannon is leading the charge against the NCAA. He says the association makes billions of dollars by putting college football and basketball players on TV, but won't share any of the revenue with the athletes. He's asking a judge in California to award tens of thousands of current and past players up to $1 billion to use their images for commercial purposes. This case is different from the one involving football players at Northwestern University, who could be granted the right to unionize and negotiate as employees.

Also disrupting the status quo is Uber, a fairly new service that allows people to hail a cab by using a smartphone app. At the end of last week, the company raised $1.2 billion from a group of private investors, so that it could expand beyond the 128 cities and 37 countries it already operates in. The money gives the fast-growing Uber an implied valuation of more than $18 billion. That makes the four-year old business bigger than corporate giants such as United Airlines (UAL), Alcoa (AA) and Sony (SNE).

Here on Wall Street, the Dow Jones industrial average (^DJI) and the Standard & Poor's 500 index (^GPSC) set several records last week and both closed at all-time highs on Friday. They both rose more than 1 percent for the week, and the Nasdaq composite (^IXIC) jumped 1.8 percent.

When you go food shopping, have you ever bought a bag of Apples -- maybe seven to a bag? Well, that's sort of what's happening to Apple's (AAPL) stock today. It closed Friday at $645 a share, and after Monday's unusual 7-for-1 stock split, the stock can be had for about $92 a share, but it will remain the most valuable company in the world. Over the past year, Apple's stock has jumped 47 percent.

Finally, less than a week after Folgers raised its price, coffee rival Maxwell House says it will do so too. The Kraft Foods (KRFT) brand is upping the price by about 10 percent.

-Produced by Drew Trachtenberg.


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prnyl

The public service unions are behind all of this as they are lined up to represent the athletes- more unions- more attorneys representing the unions- I guess they have to get their members from somewhwere as their numberscontinue to dwindle- High scjhool athletes will be next

June 09 2014 at 4:51 PM Report abuse -1 rate up rate down Reply
prnyl

I hope they tax all these so called employees on the value of their free education and all of the perks they get- Typical of these athletes to want more and more and more - it has been that way their entire life.

June 09 2014 at 4:45 PM Report abuse rate up rate down Reply
cat1bb1

Below are the figures published for the costs of the per year.
Now let's see if you as an "employee" would work 70-80 hour weeks (6 am practices, classes, weight lifting, afternoon practice,study hall, eating somewhere between the schedule and sleeping) missing holidays and summers. The "trips/travel" that some people are claiming the athletes get, are not hotels like the Ritz. They are shared rooms(sometimes four to a room - 6 ft -7 ft players, not much space) and very little free time after spending the cheapest way to travel to those games with 6-8 hour layovers to only finish the game and get back on the plane and go to the next game. There are no private planes and steak and lobster dinners!
None of you would do this for $41,000 a year. You especially would be angry knowing that your "company" is making millions of dollars a year off of your work.
Do not state that there many costs to run a college/university. There are alot of students who attend those college/universities, not just athletes.

Sector 2013-14 2012-13 $ Change % Change
Public Two-Year In-State $10,730 $10,496 $234 2.2%
Public Four-Year In-State $18,391 $17,817 $574 3.2%
Public Four-Year Out-of-State $31,701 $30,704 $997 3.2%
Private Nonprofit Four-Year $40,917 $39,447 $1,470 3.7%

June 09 2014 at 3:23 PM Report abuse +1 rate up rate down Reply
Stryyder56

Are you kidding me? You received a FREE EDUCATION plus you had the opportunity to play a sport. That also allowed you to travel for free, eat for free, lodge for free at away games. You were better off than the students that did have to PAY for their degree.................no way......

June 09 2014 at 1:52 PM Report abuse +1 rate up rate down Reply
2 replies to Stryyder56's comment
progressivehoax

AGREE 100%

June 09 2014 at 2:00 PM Report abuse rate up rate down Reply
Kahuna

So I take it your college didn't make any money televising your beer bongs at the frat house...

June 09 2014 at 2:41 PM Report abuse -1 rate up rate down Reply
1 reply to Kahuna's comment
unitedpaintings

Did yours?

June 09 2014 at 3:01 PM Report abuse rate up rate down
chuckpitboss

This is the beginning of the end for big time college sports. While you can make a case that players should be paid it will effectively eliminate sports scholarships. Also minor sports will go by the wayside as they are bankrolled by football and basketball. If this case is successful players would have to try out for team positions and would be subject to being dropped without recourse and without a scholarship. That means that most players might also have to drop out of school. Also, they would have to be students at the colleges/universities and teams would probably be of the "club" type.

June 09 2014 at 1:16 PM Report abuse rate up rate down Reply
1 reply to chuckpitboss's comment
bartonlyle

Once upon a time what's now known as the Ivy League had nationally recognized and powerful athletic teams, but when academic standards had to be loosened to attract big time athletes they deemphasized sports. Since the early 1950's they've been nonentities on the national scheme but maintain their programs in all sports competing with like-minded colleges and universities. Notre Dame and Stanford aer examples of major universities that have managed but only after a long spell of being irrelevant.

June 09 2014 at 1:32 PM Report abuse rate up rate down Reply
sam54ct

Pay are you kidding me, does he realize how much more in tuition non athletic scholarship students pay to cover the cost of sports. If the athletes want to be paid, fine, but first, subtract the cost of facilities, coaches, equipment, travel, lodging food, medical, trainers, support staff, insurance, and tuition for athletes would come in around $1,000,000 per athlete.

June 09 2014 at 1:10 PM Report abuse rate up rate down Reply
1 reply to sam54ct's comment
Kahuna

Sam, the major sports subsidize the other sports AND the student body in general. The marginal cost to the university is next to nothing. One more in a class, one more in the cafeteria. No way it costs the schools anywhere near that amount. These programs bring in revenue by the tens of millions in many schools.

June 09 2014 at 2:50 PM Report abuse rate up rate down Reply
toxicman7068

Another black man trying to get a free hand out because he could not make it in the NBA. But lets not forget he got a free education from UCLA, oh forgot about that, obviously he is not using that education.

June 09 2014 at 12:57 PM Report abuse rate up rate down Reply
texastotenmom

all illegal immigrants that obamit let "break" into america ,have no rights in our cities , schools or in our country ,n need to be "DEPORTED IMMEDIATELY along with all their anchor babies. !!!!

June 09 2014 at 11:19 AM Report abuse -4 rate up rate down Reply
2 replies to texastotenmom's comment
junior

Oh grow up. Bush was best buds with the President of Mexico and Janet was governor of Arizona and THEY ARE THE ONES that opened the flood gates for illegals. And if your dumbass would take a minute and do some research, you would know that Obama has deported more illegals than ANY OTHER PRESIDENT.

June 09 2014 at 12:15 PM Report abuse +4 rate up rate down Reply
chuckpitboss

Does that include scholars and professors, too? Or is it just the jocks? Maybe we should eliminate ALL research and development grants, including military ones, and let private industry pick up the tab.

June 09 2014 at 1:21 PM Report abuse rate up rate down Reply
telepole

These bozos forget that school costs money. Ask a dad who has to pay out of state tuition if he thinks these athletes should be paid. They already are. Thousands of dollars for tuition, room and board. I hope the court tells this jerk to go to He11.

June 09 2014 at 10:26 AM Report abuse +3 rate up rate down Reply
1 reply to telepole's comment
Kahuna

Envy is one of the seven deadly sins, my friend...

June 09 2014 at 2:43 PM Report abuse rate up rate down Reply
pipetsa

AS TO THE BASKETBALL PLAYER THIS IS ASKING TOO MUCH FOR PAST SERVICES. FEES OF ANY AMOUNT MUST BE DEALT WITH BEFORE A SITUATION NOT AFTER.

June 09 2014 at 9:31 AM Report abuse rate up rate down Reply