EA and CLC to pay $40 million in student-athlete settlement - Report

New York Times report reveals sum of high-profile settlement announced this week.

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The Electronic Arts and Collegiate Licensing Company settlement deal announced yesterday for former college players amounts to $40 million, according to a new report from The New York Times.

Michael Hausfeld, a lawyer for the players, confirmed the $40 million figure to The New York Times, but said he was not sure how the money would be divided.

"We have to come up with a plan of distribution, and that's what we are working on now," Hausfeld said.

The settlement deal is expected to affect more than 100,000 current and former college players who have appeared in EA-produced basketball and football games.

Representative for Electronic Arts and the Collegiate Licensing Company declined to comment today when approached by The New York Times.

Following the settlement announcement yesterday, EA Sports canceled its 2014 next-generation college football game and said the company is evaluating its options for the future of the brand.

Discussion

95 comments
allever
allever

Good news, even though it's just pocket change for EA. 

The lawyers will divide it equally at 34 million for them, and 75 cents for everybody else.  The lawyers will keep any left over too.

ohjtbehaaave
ohjtbehaaave

The lawyers firm takes 35 million leaving $2 dollars to be paid to every player in the lawsuit.

Triton
Triton

Nothing but Greed all the way around. From EA to the players and the lawyers. 

Just Drop the NCAA out of the titles and work with the schools that want to be in it and keep their peeps in check.

Swan_Ronson8475
Swan_Ronson8475

Class Action Lawsuits are no more than a corporate shakedown.

KelboDelta
KelboDelta

And then they wonder why there are not great quality sports video games... all for as little as a few hundred bucks each.

SS4kronos33
SS4kronos33

Following the settlement announcement yesterday, EA Sports canceled its 2014 next-generation college football game and said the company is evaluating its options for the future of the brand.

thats because with this settlement they dont have enough money to sink into another one of their crappy sports games franchises.truthfully its no big loss either way.its just 1 less crappy EA SPORTS game out there flooding the market.

Chr0noid
Chr0noid

Man, all this shit is way over my head. 

dhsk8sb
dhsk8sb

So a college athlete would receive 300 at best while each lawyer in this case will receive a considerable sum in the 100 thousands. EA and the lawyers win. again.  

Xx_DemonSoul_xX
Xx_DemonSoul_xX

Why People Are Stupid: Lesson #48

In this episode we see how silly football players were lured in by scumbag attorneys looking for a nice payday. The problem with College Football is the greedy scumbags like conference commissioners, university presidents, and bowl directors cashing in on all the money while using the players to make it.

The real issue isn't their likeness in a videogame, rather it is a sorry excuse for a paycheck since the NFL careers didn't turn out so well. Most people, myself included, would love four years of free college. Less than 2% of all college players make it into the NFL draft. The average career in the NFL lasts 3 years. Most people are not Drew Brees or Hershel Walker. Finishing that degree helps you to find work after football. Most players don't value that education. They are looking for a quick entry into the NFL, universities know this, and pay them in scholarships they know many players will never use. They barely pass garbage classes like cooking and coaching baseball.

Now comes the lawsuit. $40 million. 20% fee for the attorneys leaves $33 million for 100k + players. So two or three lawyers made $8 million. Each player will get roughly $320 a piece. That is the equivalent of working part-time for a week at Wal-Mart. Class Action suits are fraud. The only people that make money are the attorneys. Everyone else gets a free coupon for a frosty at Wendy's. Maybe players should focus on graduating as much as they do the NFL. Because trying to get rich off of suing EA... is a bad prospect. EA sucks. And Universities suck for using football players. But this is not your solution. All you did was kill any college football game, and made  a whopping $320. EA got easy given the billions they've made. Good job guys... -_-

farcorners
farcorners

Maybe I should put the E.A executives images in my new game, without asking them. It's gonna be called Economic Rapists. You track these guys down in a dark downtown night environment, and do things to them without asking for their permission.

Quid pro Quo, Clarise!

BlackSquare
BlackSquare

$40mil and they made how much off the entire franchise? Oh wait that's right, hundreds of millions if not billions. Since the players are a key part of the game, EA should of been sued for much how they made from selling the games plus a 10% penalty. They stole the players' image rights and pretty much paid a fraction of a percentage of the game revenue as a penalty.

Stiler
Stiler

I know how it will be divvied up, 


lawyers - 39,950,000 dollars.


100,000 players -  0.5 cents each.

blackothh
blackothh

so each kid gets a few hundred..... whoop-de-doo!   But im happy its costing EA something

OrgeLambart
OrgeLambart

lol the players will enjoy that 10 dollar check they will get eventually... I mean you divide 40 million up by the thousands of players and it'll be pretty much nothing... the only one that wins will be the lawyer, who will probably see 10 - 15 million of that money flat off the top... lol

Now the only good EA game got cancelled, so stupid in all honesty.

Jinzo_111887
Jinzo_111887

I wonder when people will start suing over streamed content getting pulled. Given the lawsuit for McDonald's getting sued over the coffee being scalding hot resulting in a warning label that would seem like common sense being put on the cup, I can see it happening in America. Would be pretty cool if it made sure companies kept offering content through other mediums or resulted in the content becoming public domain once its been taken down.

xeoneex66
xeoneex66

YAY EA getting screwed *high fives all around*  Now if only this shit company would implode already and remove its filth from the planet then we could have a REAL victory dance!

Jinzo_111887
Jinzo_111887

This is one reason why I don't approve of streaming. With these kinds of things, games can get canceled physically and pulled digitally and streamed. With streamed versions, you don't have the older versions to fall back on if it happens.

rtehrani
rtehrani

i cant see how anyone could call this a "victory." this is one of those things that could potentially open the flood gates for people to sue even MORE than they already do. the ONLY person(s) that won here are the lawyers, and I mean every lawyer currently practicing.

Hurvl
Hurvl

40 million divided by 100 000 equals 400 dollars each, heh. Even considering that each person won't get an equal share, it looks like EA got off easy.

Tuckpoint
Tuckpoint

"Michael Hausfeld, a lawyer for the players, confirmed the $40 million figure to The New York Times, but said he was not sure how the money would be divided."

40 million divided by 100,000 players is like 400 bucks.  That's before he takes his 40% lawyer fee.  What a great example of justice.

StephenSays
StephenSays

@Xx_DemonSoul_xX 

Your right but the problem is the money they continually make off these college students.  Yes winning a class action lawsuit really only benefits the lawyers but it also sends a message on ethics.  What EA has done is ethically wrong and now it can be proved.   They also shouldn't be allowed to show college football on TV without the players signing a waiver.  Even crappy reality shows stars get paid to be on TV, why not these athletes who put their bodies on the line.  Making millions off of video taping someone to do something without proper compensation is wrong.  And No not everyone on the football team has a fully paid scholar ship.  A scholar ship is just paying an athlete to go to your school.   

funny16
funny16

@Xx_DemonSoul_xX This win was more about principle for the college players. This is a huge win in that regard because the NCAA and CLC have admitted to being wrong for the first ever in a case like this.  This may lead to players getting paid in the next few years.

dpadam450
dpadam450

@BlackSquare Eh. What percentage of profit should the players get for having a 3D piece of text with their name and number? As of now it is only their #. I don't think they deserve more than bonus' given to the developers (actual employees).

WolfgarTheQuiet
WolfgarTheQuiet

@BlackSquarewho needs official teams and players, what makes the game good is gameplay mechanics and all that stuff

inthepastxx
inthepastxx

@b74kd3th thats a blistering 400 dollars to every player. Most likely less if the lawyers decide to take a cut which they will.

dhsk8sb
dhsk8sb

@Stiler Your math is off. Lawyers - 39,750,000 dollars

                                               players .25 cents

Mkeegs79
Mkeegs79

@xeoneex66 No. Screw that and your cynical view of EA. I will take my Battlefield 4, Mirror's Edge 2, Dragon's Age 3, and the next Mass Effect while I give you the finger.

Jinzo_111887
Jinzo_111887

@xeoneex66 They need to take MS with them. Whatever good stuff they have left needs to get to better parties like Sega or Valve.

Thanatos2k
Thanatos2k

@rtehrani People being able to sue EA and the NCAA even more is absolutely a victory.

Jinzo_111887
Jinzo_111887

@rtehrani Well, it means one less boring sports game. The side is that it shows a problem with cloud gaming.

inthepastxx
inthepastxx

@funny16 @Xx_DemonSoul_xX ha, your funny.  College athletes will not be payed to play the game.  Your in school to get an education, not to make millions playing for a University.  As well I promise you no school has the money to pay 80+ students to play football.  Not to mention the kids that have scholarships going to school for free plus getting paid to play come on now.  We can't forget about all the other student athletes.

YukoAsho
YukoAsho

@WolfgarTheQuiet @BlackSquare That's what makes a game good, but unfortunately, not what makes a SPORTS GAME sell.  Otherwise, All-Pro 2K8 wouldn't have failed in the market.

WolfgarTheQuiet
WolfgarTheQuiet

@b74kd3th all you people do is sue each other, this could have been solved with few nice fist fights, one on one man to man lol

xeoneex66
xeoneex66

@Mkeegs79 @xeoneex66 You do that, but while I'm only getting the finger, your getting shit shoved up your ass and paying through the nose :) so have a shitty day.  Oh and GO BACK UNDER YOUR BRIDGE TROLL, no one gives a shit about your opinion.

xeoneex66
xeoneex66

@Jinzo_111887 @xeoneex66 bit worried about the new valve stuff as well I don't know...  That steambox, and the ouya seem like good idea's but the execution is just... balls.

inthepastxx
inthepastxx

@dpadam450 @Hurvl between football and basketball; with how many years they've been making college sports games I'm surprised its not higher

Mkeegs79
Mkeegs79

@YukoAsho @inthepastxx @funny16 @Xx_DemonSoul_xX 

You people need to stop acting like its a job. Its never been a job. Its college. They don't get paid to play. The get paid to get education and better themselves. Getting paid takes that out. If you want more corruption than pay them. That is just going to take the fun out of watching them play for the love of the sport. Its going to further cement goes further to specific schools that has more money and make things more lopsided.

They have it easier compared to any other students. Nobody realizes how easy they have it. They are treated extremely well in college with an incredible amount of benefits. A lot of them have become too used to having it easy.

inthepastxx
inthepastxx

@YukoAsho @inthepastxx @funny16 @Xx_DemonSoul_xX Being someone who goes to one of these "division one" schools I can tell you, even with all the money they make they don't have enough to pay students so they can "live" on their own thats well over 1000 students.  Now lets talk about students who are going to school completely free to play that sport.  Who are you to blame the school because that kid only wants to play football and take lack luster classes?  By this time most know if they have a chance of making it or not.  These kids can as well live at home with mommy and daddy until they are done with school.

YukoAsho
YukoAsho

@inthepastxx @funny16 @Xx_DemonSoul_xX The problem is that you really don't get an education when you're a so-called "student athlete."  Academic fraud is rampant in Division One athletics, and most "students" only ever study the playbook.  Honestly, paying athletes (not millions, but at least enough to live on their own without taking money from agents, or to get a real eductation when their football time is over) is at least fair given the sheer amount of money corrupt Division One schools make off these kids.

Mkeegs79
Mkeegs79

@xeoneex66 @Mkeegs79 Nope. I will be having fun obviously. A troll? Do you even comprehend what I troll is? Sorry but I think your view is pretty pathetic in the large scheme of things, especially when every company does EXACTLY what EA does and even more so with Ubisoft and Activision.

Battlefield 4 is going to be awesome. Like it or not. Hating on EA won't change the quality of the game or Dice which is talented at multiplayer. Boycotting EA is your thing, ok but your not going to win any brownie points from me by jumping on a that wagon. You minority live it up on the boards, numbers for the sales will and always have say a different story! :)

xeoneex66
xeoneex66

@DaRq_MiNoS @xeoneex66 @Jinzo_111887 Well I suppose.  I don't care for Micro$hits anymore either.  But I still have alot more I do that I dont think I could do with a steambox so I'm not so lucky :P

DaRq_MiNoS
DaRq_MiNoS

@xeoneex66 @Jinzo_111887 If you already have a gaming PC, then yeah it's pointless other than the streaming.  But it makes PC gaming more affordable.  I love it because I'll probably never have to buy another Microsoft product ever again.

xeoneex66
xeoneex66

@Jinzo_111887 @xeoneex66 It just doesn't seem logical to me to create something that a PC already does...  I don't know thats just me and my opinion I guess, people can take it for what its worth to them :P.

Jinzo_111887
Jinzo_111887

@xeoneex66 @Jinzo_111887 Steambox is an open source PC disguised as a console. Ouya's a Smartphone pretending to be a console. PCs can stand toe to toe with consoles better than smartphones can.