Skip to Content
In an article published on 7/29 in the Daily Business Review, Segal McCambridge Associate Ryan Musleh discusses actionable measures that compliance offices, third-party sponsors, colleges, and attorneys will need to implement given the game-changing decision in House v. NCAA. As this court decision exposes universities to new risks, erodes longstanding enforcement mechanisms, and more, compliance strategies beyond NCAA bylaws must be reoriented.
“For the first time, the ability to block athlete endorsements rests not in Indianapolis but in the hands of arbitrators,” Musleh notes. “And, now that direct compensation from school to athlete is above board, Title IX scrutiny is sure to intensify.”
Musleh encourages institutions to audit their name, image and likeness (NIL) collectives and booster involvement actions; develop or refine arbitration response teams; outline Title IX challenges proactively; and document compensation structure information and decisions to address endorsement disputes. Compliance officers, general counsel, and outside advisors must quickly get up to speed with the coming collegiate school year and competitive athletic field.
“The settlement agreement strips the NCAA and its member schools of their power to unilaterally block potential endorsements and execute disciplinary functions related to the same,” Musleh writes. “Education institution control is therefore strikingly weakened with this mandatory arbitration structure. Now, arbitrators will have to issue written decisions, which creates a semi-public record of disputes, and without appellate review the risk of inconsistency increases. Yet, as arbitration rulings stack up, precedents will be created that will carve out a path for long-term success and more predictable outcomes.”
Read the story in full, click here (subscriber-based).
