Amateur Sports Law Outline – Spring 2004

 

I. Legal Relationships in Sports

  • NCAA Structure
    • Within the NCAA, there are separate divisions for members
      • Three Divisions: Division I, Division II, and Division III
    • Division I is composed of the major athletic powers in the country, as well as many other institutions that choose to compete at the major college level
      • Division I is divided into Division I-A and Division I-AA for purposes of regulating football
    • The members govern the organization through the establishment of rules designed to further its purposes and goals
    • The operating structure is that of three federations:
      • Day to day operation of the organization is overseen by the 20 member Executive Committee
        • Composed of institutional CEOs charged with ensuring that each division operates with the purpose, policies and principles of the association
      • NCAA also has a permanent professional staff, with individual departments for administration, business, championships, communications, communications, compliance service programs, legislative services and publishing
  • Jurisdiction and Responsibilities of the NCAA
    • Duties include athlete eligibility, recruiting, championships, rules of competition, and enforcement
    • The professional staff administers the rules and regulations of the association
    • Membership Services oversees the bulk of the administration
    • The enforcement department handles the investigation and prosecution of violation of the rules
    • Two concepts of the NCAA:
      • (1) Those relating to amateurism
        • All NCAA student athletes are to be amateurs and the association’s regulations set out explicit definitions of amateurism and specific prohibitions on the acceptance of extra benefits
        • Getting “paid” involves more than just the obvious salary or stipend
          • It is a violation of the rules for benefits to be provided to parents or close relatives of student athletes
        • Amateur status is forfeited when an athlete retains an agent or declares himself eligible for a professional sports draft (Note: NBA Draft)
        • There are also restrictions on promotional activities that benefit athletes because of their athletic abilities
        • There are restrictions on employment for athletes on full scholarship
      • (2) The importance of education
        • The associations establishes standards for initial eligibility of athletes entering the institutions, including specific thresholds for standardized tests and satisfactory completion of a minimum number of core courses in high school
        • NCAA also sets forth specific requirements for “satisfactory progress towards a degree” that athletes must maintain
          • Student athletes typically have four years of eligibility, and must complete them in five years
    • NCAA Rules limit recruiting
      • Number of visits by coaches, the number of visits to campuses by athletes, number and types of contacts made by coaches, the times of year that contacts may be made
      • Restrict the participation of alumni in recruiting
    • NCAA restrictions once athlete enrolled at institution
      • Number of hours for practice, times of year for competition, number of contests
  • NCAA bylaws require that each members control its program in a manner consistent with the rules and regulations of the association (The CEO of the institution has this ultimate responsibility)
    • The most serious violation the university can commit is “failure to maintain institutional control”
  • Athletes Rights
    • Rights Arising from the Athletic Scholarship
      • NCAA regulates the number of scholarships available and the terms of the scholarship
      • Taylor v. Wake Forest University
        • Facts: Taylor went to play football at Wake.  He received terrible grades, and told his coach he would miss practice so he could study.  His scholarship was terminated.  Taylor sued for recovery of education expenses after his scholarship was terminated.
        • Rules/App:
          • Taylor knew his scholarship was awarded for academic and athletic achievement
          • In consideration of this scholarship, Taylor agreed to maintain his athletic eligibility, and this meant both physically and scholastically
          • As long as his grades equaled or exceeded the requirements, he was maintaining his scholastic eligibility
          • Participation in and attendance at practice were required to maintain his physical eligibility
          • When Taylor refused to practice in the absence of any injury or excuse other than to devote more time to studies, he was not complying with his contractual obligations
        • Held: For Wake Forest
      • Ross v. Creighton University
        • Facts: Ross, a poor high school student took a basketball scholarship to Creighton.  The school promised he would receive a “meaningful education.”  Ross had a D average at the school, while taking many meaningless courses.  He alleges the Athletic department advised him to take these courses, and his work was done for him.  Ross asserts that the school failed to provide him with sufficient and competent tutoring, as it had promised. When he graduated he had skills equivalent to a child. He is suing the school for negligence and breach of contract in failing to educate him.
        • Ross’ Theories:
          • (1) Educational Malpractice
            • Courts defer to the schools’ decisions regarding academic qualifications of the students
            • The court bars any attempt to repackage an educational malpractice claim as a contract claim
          • (2) Creighton negligently inflicted emotional distress on him for employment after college
          • (3) Negligent Admission
            • Rejected by court because there are no adequate standards against which to measure such a claim
          • (4) Breach of Contract in failing to educate him
            • The basic relation between a student and a university is contractual in nature
            • To assert this claim, he must point to an identifiable contractual promise that the school failed to honor
        • The appeals court disagreed with the trial court, and held the allegations of the complaint are sufficient to warrant further proceedings
          • The court recognized that courts should not take on the job of supervising the relationships between colleges and student athletes
          • Further, the court noted that a formal university contract is rarely employed, and the terms of the agreement are usually implied from university publications, custom and usage
          • But the court believed Ross’ specific and narrow claims that he was barred from any participation in and benefit from the University’s academic program could be decided by the district court without second-guessing the professional judgment of the school
      • Jackson v. Drake University
        • Facts: Drake hired Tom Abatemarco as their head basketball coach, without being aware of an SI article alleging his reputation as a recruiter.  Abatemarco recruited Jackson, and emphasized he would receive an education, including a tutor provided to Jackson.  The coach scheduled practices during Jackson’s study time and tutoring successions. The coach made Jackson go to practice, with threats his scholarship would be taken away.  The coach offered people to do Jackson’s work and for him to take easy classes, which he declined.  During practices the coach singled out Jackson, and Jackson quit the team.  His scholarship was then taken away
        • Breach of Contract
          • The court concluded that the financial agreement do not implicitly contain a right to “play” basketball
        • Negligence (Educational Malpractice)
          • Reasons for not recognizing this claim (from Moore case):
            • 1. A lack of a satisfactory standard of care by which to measure the defendant’s conduct
            • 2. To recognize this claim would result in enormous litigation
            • 3. To recognize this claim would force the courts blatantly to interfere with the internal working of a school
            • 4. It has been recognized that academic freedom thrives on the autonomous decision-making of the academy itself
          • Jackson’s claim asks the court to pass judgment on the manner in which Drake runs its basketball program, which does have an academic compartment.
          • The court does not recognize this Jackson’s negligence claim
      • Notes:
        • NCAA defines an amateur student athlete as one who engages in a particular sport for the education, physical, mental and social benefits derived therefrom and to whom participation in that sport is an avocation.
    • Workers’ Compensation
      • Injured employees give up their rights to pursue common law tort claims in exchange for a more certain, recovery under the workers’ compensation act
      • A WC claim makes the employer strictly liable for an injury to an employee that occurs in the course of employment
      • An employee is defined as a person in the service of another under a contract of hire, written or implied
      • Test: Whether particular worker is an employee or an independent contractor
        • Two Categories:
          • 1. Nature of the work test – Court focuses on whether the worker’s efforts are inextricably linked to a significant aspect of the employer’s business
          • 2. Right to control test – The focus is upon the employer’s ability to manipulate the efforts of the worker
        • Whether personal injury arose out of or was in the court of employment
          • Courts look for a causal connection between the injury and the employment
          • The test is met if it is the employment which brings the worker into the orbit of the risk that in fact resulted in injury
      • Recovery: Medical expenses and lost earnings
      • Waldrep v. Texas Employers Insurance Association
        • Facts: Waldrep played football for TCU where he severed an injury that paralyzed him.  He filed a WC claim for his injury.
        • Discussion:
          • Is a student athlete on scholarship and employee of the school?
            • The letter of intent and financial aid agreements are contracts, but they only partially set forth the relationship between the student and the school
            • One may receive a benefit from another in return for services and not be an employee
            • An employee is a person in the service of another under a contract of hire, express or implied, oral or written, whereby the employer has the right to direct the means or details of the work and not merely the result to be accomplished
          • Was there a contract for hire?
            • The NCAA does not consider the acceptance of financial aid from the school to be “taking pay”
            • Waldrep was not on the payroll, he was intended to participate at TCU as a student, not an employee
            • He could not be fired as an employee
          • Right to Direct the means of Waldrep’s work
            • To determine whether there is a right to control the court looks to the terms of the employment contract
            • Where there is no express contract, the exercise of control may be the best evidence available to show the actual terms of the contract
            • TCU did not have the right to direct or control all of Waldrep’s activities during his tenure at the school
          • Held: Waldrep was not an employee of TCU, and cannot get WC
      • Note: Schools are typically insured for claims against the university, which covers players who are injured during play
    • Coaching and Institutional Contracts
      • Coaching Contracts
        • Rodgers v. Georgia Tech Athletic Association
          • Facts:  Rogers was head football coach at Georgia Tech.  His contract provided him with certain prerequisites, which are incidental profits attaching to the position beyond a salary.  Rogers was relieved of his head coaching position, but remained an employee of the school.  He sues to recover these prerequisites.
          • Issue: Whether Rogers is entitled to recover the value of certain prerequisites or fringe benefits of his position as head football coach under the terms of his contract.
          • Discussion:
            • First, look to the intention of the parties as to the scope of the prerequisites to which Rogers was entitled under the contract.
              • Court held the parties’ intentions were that Rogers would receive the perquisites as head football coach, not merely as an employee.
            • Rogers was not entitled after his removal to the services of a secretary, administrative assistant, and the cost of trips for football ventures – these were specifically granted to him as the head coach
            • As a rule, a party is entitled to recover profits that would have resulted from a beach of contract into which he has entered, where the breach is the result of the other parties’ fault
        • Monson v. Oregon
          • Facts: Monson was the head basketball coach at Idaho.  He earned additional income as coach from outside activities from sponsors and radio and television shows.  The school wanted to remove Monson and told him he could remain as golf coach, which Monson declined.  Monson sued for breach of contract.
          • Discussion:
            • The court held that with respect to nontenured faculty members (as Monson), the school has the authority to reassign individuals based on its assessments of its overall staffing needs.
              • The school may determine that a staff member is no longer the most effective and someone would be better served in that position.
            • Monson failed to identify any evidence that his reassignment from his head basketball coach position was not in accordance with the applicable administrative rules.
        • Campanelli v. Bockrath
          • Campanelli was fired as basketball coach at Cal.  A newspaper reported the reason for his termination was the use of profane and abusive language to his players in a postgame speech which was released by school administrators.  Campanelli sued, alleging a due process violation whereby a state may not deprive a person of his liberty interest “to engage in any of the common occupations of life” without due process of law.
          • Discussion:
            • Campanelli must first prove the statements rose to the level of stigmatizing him
              • There was a question of fact on this point
            • Campanelli must also allege defendants made their statements in the course of his termination
              • May be met when defamatory statements are so closely related to the discharge from employment that the discharge itself may be stigmatizing in the eyes of the public
              • There must be a temporal nexus between the employer’s statements and the termination
                • This was satisfied by Campanelli
            • Campanelli must also allege that the defendants’ statements were false
              • The issue of whether his statements arose to the level of abuse and psychological damage to his players is a question of fact that should not be determined during the pleadings stage, but on the basis of evidence
        • NOTE: Rick Neuheisal contract talked about in class

II. Amateur Sports Associations

-          From Nutshell

o       Amateur sports can be divided into 2 basic forms:

§        Restricted competition – includes high school and college. It means competition is restricted to essentially the same groups at different levels. Competition is controlled and organized by athletic conferences or associations or leagues, which establish rules and organize schedules.

§        Unrestricted competition – open to all athletes. EX: Olympic competition – allows competition among all types of people and groups and is not restricted by age or college or other restrictive criterion

o       Definition of an amateur athlete may change from one organization to another

o       Voluntary associations may adopt reasonable laws, rules and regulations which will be valid and binding on their members unless their rules violate law or public policy

 

THRESHOLD CONSTITUTIONAL ISSUES:

 

-          If state action is not involved, the law says the private association can make it’s own rules as long as they are not arbitrary or unreasonable

-          A person who alleges a denial of constitutionally protected rights must at the outset demonstrate that it is indeed the action of the government that is being challenged

o       The merits of the claim will Not be reached unless it can be shown that, somehow, the government has acted

o       These are easily shown where an individual challenges the constitutionality of a state statute

-          Purely private disputes ordinarily do not raise constitutional issues no matter how egregious the private act

-          The difficulty arises in cases where state action is not apparent but where the state is nonetheless somehow involved

-          Although many amateur athletic organizations are private in the sense that they are not formal creatures of the state,

o       they arguable perform state like functions and the state itself is inevitably somehow involved with their operations (directly or indirectly)

§        by providing money, services, facilities, permission or encouragement

-          if the putatively private actor is really performing a public function, then perhaps it ought to be treated as though it were the state

o       or if the level of state involvement is significant, then perhaps the action of the organization ought to be treated as state action

 

DeFrantz v. United States Olympic Committee:

-          Facts:

o       Dealing with the 1980 boycott of the Olympics

o       Moving for an injunction against the Olympic Committee in doing resolution

§        That they were not going to send a U.S. team to the summer Olympics in Moscow

o       Denied 25 people the right to compete in the Olympics

§        B/c that was when Russia invaded Afghanistan

o       The Committee:

§        Are the sole authorities responsible for the representation of the respective countries at the Olympic Games

o       Plaintiff claims:

§        Alleges that defendant’s action constituted “governmental action” which abridged plaintiff’s rights of liberty, self expression, etc..

-          Holding:

o       Under International Olympic Committee rules and the Amateur Sports Act of 1978, the Committee not only had authority to decide not to send an American team to the summer Olympics but also could do so for a reason not directly related to sports considerations

o       Amateur Sports Act of 1978 did not confer an enforceable right on amateur athletes to compete in Olympic competition, where the United States Olympic Committee House of Delegates had decided not to accept an invitation to enter an American team in the competition

§        Even if amateur athletes had a right to compete in Olympic games under Amateur Sports Act of 1978, despite United States Olympic Committee's determination not to enter a team, they did not have an implied private cause of action to enforce such right.

o       Since this is a private industry

§        They must show that this was a regulated state or government action

o       Must show that the government had some control of the decision making of the private industry

o       This was no such control here:

§        b/c they could not establish a nexis b/w the two

§        the committee is an independent body, and nothing in its chartering statute gives the federal government the right to control that body or its officers

§        and the facts here do not indicate that the federal governments was able to exercise any type of control over the Committee

o       The federal government may have had the power to prevent the athletes from participating in the Olympics even if the USOC had voted to allow them to participate,

§        But it did not have the power to make them vote in a certain way

§        All it had was the power of persuasion

o       They accordingly found that the decision of the Committee not to send an American team to the summer Olympics was not a state action,

§        and therefore, does not give rise to an actionable claim for the infringements of the constitutional rights alleged

 

NCAA v. Tarkanian

-          Facts:

o       NCAA put UNLV under investigation for violating recruiting rules.

o       U After a lengthy investigation of allegedly improper recruiting practices by the University of Nevada, Las Vegas (UNLV), a state university, the Committee found 38 violations, including 10 by respondent Tarkanian, UNLV's basketball coach.

§        The Committee imposed a number of sanctions upon UNLV, and requested it to show cause why additional penalties should not be imposed if it failed to suspend Tarkanian from its athletic program during a probation period.

o       UNLV had 3 choices put before them: (1) Reject the sanctions and keep Tark, and run the risk of heavier sanctions; (2) Recognize the NCAA’s authority and reassign Tark; or (3) Pull out of the NCAA.

§        They chose (2).

o       He sued NCAA and school, and got an injunction against school.

o       In suit against NCAA, he claims that NCAA is a state actor and deprived him of due process.

o       Won at trial ct., but Ct. of App. reversed (NCAA is private org., has no govt. powers, and UNLV made the ultimate decision).

o       Tark claims UNLV had no choice.

-          Holding:

o       As general matter, protections of Fourteenth Amendment do not extend to private conduct abridging individual rights.

o       S.Ct. said if a  can show NCAA was calling the shots for a state org. as Tark claims,

§        then it will be deemed a state actor.

o       Court said it would be more appropriate to conclude that UNLV conducted its athletic program under the color of the policies adopted by the NCAA,

§        rather than that those policies were developed and enforced under color of Nevada law.

o       Held that university's imposition of disciplinary sanctions against basketball coach in compliance with National Collegiate Athletic Association rules and recommendations did not turn the Association's otherwise private conduct into state action,

§        and thus Association could not be held liable for violation of coach's civil rights.

 

Brentwood Academy v. Tennessee Secondary School

-          Facts:

o       Private high school sued state interscholastic athletic association under § 1983, seeking to prevent enforcement of rule prohibiting use of undue influence in recruitment of student-athletes.

o       The Association’s board of control found that Brentwood violated a rule prohibiting “undue influence” in recruiting athletes,

§        When he wrote to incoming students and their parents about spring football practice

o       The association put Brentwood on probation for 4 years

§        And would not allow them to play in the playoffs

o       When these penalties were imposed, all the voting members of the board of control and legislative council were public school administrators

-          Issue:

o       Whether a statewide association incorporated to regulate interscholastic athletic competition among public and private secondary schools may be regarded as engaging in state action when it enforces a rule against a member school

§        Determining whether athletes are eligible to play

-          Rule of Law:

o       That a state action may be found if, though only if,

§        there is such a “close nexus b/w the State and the challenged action” that seemingly private behavior “may be fairly treated as that of the State itself”

-          Holding:

o       The nominally private character of the Association is overborne by the pervasive entwinement of public institutions and public officials in its composition and workings,

§        And there is NO substantial reason to claim unfairness in applying constitutional standards to it

o       Regulatory enforcement action by state interscholastic athletic association was "state action" for purposes of Fourteenth Amendment, despite association's nominally private character, in light of pervasive entwinement of public institutions and public officials in its composition and workings;

§        public schools constituted 84% of its membership, half of council and board meetings were held during official school hours, public schools provided for association's financial support by giving up sources of their own income, state board of education members served as members of association's governing boards, and association's ministerial employees were eligible for membership in state retirement system.

o       Entwinement with government will support conclusion that ostensibly private organization ought to be charged with public character and judged by constitutional standards

o       When relevant facts show pervasive entwinement between government and ostensibly private organization to point of largely overlapping identity,

§        implication of state action is not affected by pointing out that facts might not loom large under different test

o       There was just to much intertwinement b/w the association and the public school and its officials

§        Therefore it was considered a state action

 

-          Prof. Said:  The above cases give good idea of state action

 

 

NCAA ENFORCEMENT AND ELIGIBILITY ISSUES:

 

 

-          From Nutshell:

o       The question is whether the actions of the governing body are state action or fall under the color of state action

§        This question is extremely important as regards the actions of the NCAA

o       The supreme court suggests that NCAA eligibility regulations may no longer be viewed as state action

§        This is however a narrowly drawn opinion that established that the NCAA did not assume the role of the state when it directed a state university to initiate certain particular actions against one of its employees

§        This case however, does not definitively settle the question of whether the NCAA can ever be a state actor

o       The court observed that the action of removing a coach from a state institution is a state action

§        But the NCAA did NOT take part in that particular action

o       The state action nonetheless might lie if a university by embracing the NCAA’s rules transforms them into state rules

§        And thereby arguably transforms the NCAA into a state actor

o       Some state have passed legislation that provides for liability for violation of an NCAA rule

§        With legislation of this type the NCAA’s regulations will arguably be deemed to represent state action

 

Pryor v. National Collegiate Athletic Association:

 

-          Facts:

o       Eligibility case under proposition 16

o       College students sued collegiate athletic association, challenging rule under which they were denied opportunity to participate in athletic competition as freshmen.

o       Plaintiff’s alleged intentional race discrimination

§        b/c the purpose behind proposition 16 was to increase the graduation stats ( by using both the SAT scores and GPA)

·               so they claim that they are being excluded from the university b/c of the impact of the proposition

-          Holding:

o       They pass summary judgment, but that does not mean that they have won

o       Held that the allegations that rule was adopted to reduce number of black athletes who would become eligible for athletic scholarships and compete in intercollegiate athletics as freshman stated claim for purposes race discrimination in violation of Title VI

§         And the allegations that challenged rule was adopted with deliberate indifference to rule's purported disparate impact on black student athletes failed to state Title VI claim

o       Both Title VI, which bars discrimination with respect to participation in, and benefits of, programs receiving federal financial assistance, and civil rights statute guaranteeing equal rights under the law

§         provide a private cause of action for intentional discrimination only

o       To prove intentional race discrimination by a facially neutral policy,

§         plaintiff must show that the relevant decisionmaker adopted the policy at issue "because of," not merely "in spite of," its adverse effects upon an identifiable group;

·    mere awareness of the consequences of an otherwise neutral policy will not suffice.

o       College students stated claim for purposeful race discrimination in violation of Title VI, which barred discrimination with respect to participation in, or benefits of, program receiving federal financial assistance,

§         when they alleged that collegiate athletic association adopted facially neutral rule establishing scholarship and athletic eligibility criteria for incoming student athletes because it wanted to reduce number of black athletes who would become eligible for athletic scholarships and compete in intercollegiate athletics as freshmen,

§         that association knew rule would adversely affect black student athletes as a result of pre-rule studies indicating rule would have such effect, and that association's stated goal of wanting to improve graduation rates via rule was "pretext" for actual goal

o       Parities suing the NCAA for such claims must be prepared to present evidence at the summary judgment stage that would substantiate their allegations

o       So, they reverse the dismissal of summary judgment,

§         With the instructions that they must present the substantial evidence

-          Notes:

o       Won’t likely stand here, b/c it is just a lot to say that the motivation and impact will have racial discrimination

 

Bell Case (handout):

-          Facts:

o       School requirements stated:

§             That if someone was “married” they could not participate in athletics and other school functions

o       School said that they created the rule to keep people from dropping out

§             That if the student couldn’t participate in athletics if they got married, then it would prevent them from getting married and dropping out of school

-          Holding:

o       Participation in athletics is not a constitutional right

o       But, a school should not implement an action that would discriminate against a particular group