Law Wise • 2019
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PUBLISHED BY LCoordinators: AW W ISEAPRIL 2019 • ISSUE 5 Honorable Bethany J. Roberts, Chair, LRE Committee; Anne Woods, Public Services Director; Nicolas Shump, Law Wise Editor; & Patti Van Slyke, Journal Editor Greetings from the Kansas Bar Association (KBA). Welcome to this fifth edition of Law Wise for the 2018-2019 school year. IN THIS ISSUE Intro to the Professionalization of Sports ....1 Show Me the Money: The Big Business of College Athletics ..................................... 2 The One and Done Rule Reconsidered .... 3 College Eligibility & Professional Sports ... 3 Sports and the Law ................................... 4 Player Freedom & Professional Sports ........ 6 Lesson Plan 1: Anti-Trust Labor Law and Introduction to the Sports...................................................... 7 Lesson Plan 2: Paying College Athletes ..... 8 Professionalization of Sports Terrific Technology for Teachers .............. 10 For men and women of my generation, our earliest memories of sports did not involve uniforms, treats or participation trophies. Instead, many Financial Literacy: How to Adult ............ 11 of us found our way to courts, playgrounds, or fields in our neighbor- hoods and local schools. Our game resembled the leagues in which we Law Day Reminder ................................. 15 competed in middle and high schools, but there were no officials or leagues. We often had to modify our rules to accommodate the field of play or number of participants. Some of us likely dreamed of playing professionally, but we played any and all sports available—even those of our own creation. As a youth coach and official, I can attest to the changes that have oc- curred in the dynamics of youth sports among the current generation of athletes. According to the Sports and Fitness Industry Association (SFIA) 21.5 million children between the ages of 6 to 17 compete in organized CALENDAR OF EVENTS sports teams. This data includes 1.5 million children age 6 or younger. In fact, nearly 8 million children under the age of 10 compete on these teams. In terms of gender, 60 percent of boys and 47 percent of girls have joined sports teams by the age of 6. May 1 ....................................ABA Law Day Youth sports, and sports in general, are important sites of socializa- May 17 .............................. 65th Anniversary tion for large percentages of American youth. SFIA polls show that 34 of Brown v. Board of Education percent of girls and 61 percent of boys claim “sports are a big part of who they are.” While many students continue to play sports through high www.ksbar.org/lawwise 2 LAW WISE | APRIL 2019 school, the likelihood of those athletes having the opportunity tional expenses and opportunities might provide them a com- to compete at the collegiate or professional level drops off con- petitive advantage; however, research shows only two percent siderably. of athletes earn a Division I or Division II athletic scholarship. This has not, however, prevented families from supporting This issue will explore the contested terrain of sports and their children’s athletic dreams. According to a 2018 Chicago professionalism, paying particular attention to various models Tribune article, $15 billion has been spent on leagues, travel with regard to athletes having the opportunity to turn profes- teams, private coaches and other expenses. Sixty percent of sional after completing high school and college. Consideration families spend between $1,200 to $6,000 a year, and 20 per- will be given to relevant legal challenges and landmark court cent spend $12,000 annually. At the same time, 40 percent of cases involving professional sports. Additionally, the question of emergency room visits for children ages 5 to 14 are for sports- whether college players termed “student athletes” should receive related injuries. Parents and children believe that these addi- payment for their efforts will be addressed. Show Me the Money: The Big Business of College Athletics According to data compiled by U.S.A Today, John Calipari, receive $2.25 million for travel expenses for the final. Teams head basketball coach at the University of Kentucky, is the participating in the Cotton, Fiesta, and Peach Bowls receive a highest paid coach in college basketball with an annual sal- payday of $4 million. ary of nearly $9.3 million. Legendary Duke basketball coach The various sports conferences receive handsome payments Mike Krzyzewski is next with a $7 million salary. University too. Forbes Magazine noted the Atlantic Coast Conference of Kansas coach Bill Self is fifth on the list with a total com- (ACC) received $87.5 million. The Big 12 earned $60 mil- pensation package of just over $4 million. The top 69 coaches lion. The Big 10 garnered $89.5 million in revenue. The -Pa on the list made salaries that exceeded $1 million. Twelve of cific Athletic Conference (PAC-12) received $62 million and the coaches had benefits exceeding $1 million with Florida the Southeastern Conference (SEC) made $70 million. Other State coach Leonard Hamilton having a maximum bonus of smaller conferences and independents earned approximately $2.675 million. $89 million collectively. The amounts are similar for college football coaches with There are other sources of revenue generated through events Nick Saban, Alabama coach, making $8.3 million with a po- such as the NCAA Basketball Tournament and the college tential $1.1 million in bonuses. The fifth ranked football coach football playoffs. Over $10 billion in bets are placed on the on this list earns $6.7 million annually. A 2018 Business In- NCAA Tournament. One source puts the amount in lost pro- sider article points out that 39 of the 50 highest paid state ductivity because of “March Madness” at $2.3 billion. Other employees in 2017 were either college basketball (8) or college than their athletic scholarships, the student athletes competing football coaches. Because he is employed by a private univer- in these contests receive no additional compensation. sity, Coach K at Duke is not on the list. In 2017, the NCAA gen- erated over $1 billion in Item/Event Dollars revenue with over $800 Sports betting on March Madness $10 billion/year million in television rev- enue alone. In 2010, net- Lost productivity due to March Madness $2.3 billion/year works paid $10.8 billion NCAA Basketball Tournament/March Madness Contract $1.1 billion/year for 14 years of tournament broadcast rights. In 2016, Total amount paid to NCAA football teams for postseason $458 million this contract was renegoti- bowl games ated for eight years at $8.8 billion. Highest salary for NCAA basketball coach $9.3 million/year The college football play- Highest salary for NCAA football coach $8.3 million/year offs will pay out $6 million to each of the four partici- Payment per team for College Football Championship $6 million/year pants. All teams participat- Travel expenses per game for teams in the College Football $2.24 million/game ing in the semi-final games Championship receive $2.25 million for travel and the national Additional Revenue paid to players in NCAA Tournament or $0.00 championship teams will College Football Championship www.ksbar.org/lawwise APRIL 2019 | LAW WISE 3 The One and Done Rule Reconsidered College Eligibility and Professional Sports Across the Board When one hears about the “one and done” rule, most think of college basketball players. This is because in 2005, the NBA Top high school hockey players are allowed to enter the and the National Basketball Players Association agreed to NHL draft and still return to school. They can even sign with prohibit high school basketball players from directly entering agents and retain their amateur status. If they enroll in college, the NBA draft after graduation. This ruling left college as the they cannot retain their agent. If the high school player enters main destination for elite teenage basketball players, though a college, the team that drafted the player retains its professional few players chose to pur- rights for four years. Eli- sue professional basket- gible college junior play- ball overseas until they ers may even re-enter were eligible for the NBA the draft if they have draft. However, most not signed professionally players enrolled in college after two years. A simi- for one year and then en- lar rule exists in Major tered the NBA draft. League Baseball for col- lege baseball players. Closely tied to this rule is a documentary made by The situation is consid- Josh Swade in 2016, fo- erably different for aspir- cusing on Ben Simmons. ing baseball players in Simmons, originally from the Dominican Republic, Australia, moved to the which has produced sev- U.S. to play high school eral Hall-of-Fame, league basketball before enroll- All-Stars, and top pros- ing at LSU for his obliga- pects including Pedro tory one year in college. Martinez, Alex Rodri- Simmons ultimately was guez, Manny Ramirez, the first player selected Yordano Ventura, John- in the draft, and the film ny Cueto, and numerous showed the challenges others. At sixteen years and hypocrisy of this rule, of age, eligible prospects as Simmons spent the ma- can sign with academies jority of his time focusing on basketball. Simmons noted there affiliated with every MLB club, including the Kansas City was not a possibility of graduating in one year, and he dropped Royals. In this environment, a sixteen-year old unsigned pros- out of LSU at the conclusion of the basketball season. pect could be considered a has-been. The resistance against these types of arrangements with the With the controversy and convictions regarding payment NBA may have to do with the ability to scout the available to players and their families through intermediaries of Adidas talent prior to using a draft pick on a young player coming employees, there is renewed interest in reviewing this decision.