Federal Antitrust Lawsuit Against NCAA Faces Opposition from Plaintiffs’ Attorneys

In a significant development in the ongoing legal battles against the NCAA, attorneys representing plaintiffs in the Fontenot v. NCAA case have filed a motion to deny preliminary approval of a recent $2.78 billion settlement agreement. This lawsuit, distinct from the settlement, was initiated in a Colorado District Court and argues that the proposed agreement is inadequate, settling for “just pennies on the dollar” for the athletes involved. The settlement, reached in May, aims to resolve three antitrust lawsuits against the NCAA and five major conferences regarding the rights of college athletes to profit from their names, images, and likenesses. The preliminary approval hearing for the settlement is set for September 5, presided over by U.S. Judge Claudia Wilken in California. The Fontenot lawsuit, filed by former Colorado football player Alex Fontenot, contends that NCAA regulations have unlawfully restricted college athletes from receiving a fair share of the substantial revenues generated by their respective schools. Although the plaintiffs sought to consolidate their case with the California lawsuits included in the settlement, a Colorado judge denied this request in May. The settlement includes provisions for a revenue-sharing system for athletes and an increase in scholarship opportunities, transitioning from strict limits to roster caps in most Division I sports. In a related move, Fontenot's legal team has also filed a new lawsuit on behalf of former TCU baseball player Riley Cornelio, alleging that scholarship limits have allowed the NCAA and conferences to manipulate athlete compensation. This new lawsuit is seeking class-action status.