Athletes’ Settlement Reached, EA Sports Expected to Pay $40 Million

Electronic Arts and Collegiate Licensing Co., a licensing company that licenses and markets college sports, finally reached a settlement agreement with attorneys representing over 100,000 athletes.  The settlement is approximately $40 million and will be awarded in varying amounts ranging from $50 up to $15,000.

The settlement stemmed from a lawsuit brought against EA and the NCAA back in 2009. EA were creating video games using the likeness of college football and basketball players. The video games were marketed for and by the NCAA, however, none of the college athletes had given EA and NCAA prior approval to use their likeness.

One of the athletes who originally filed the lawsuit, Ed O’Bannon, is set to go to trial on June 9. The former UCLA basketball star and several others are scheduled to appear in court during a major antitrust trial against the NCAA. O’Bannon and Sam Keller, an former Arizona State quarterback, is executed to receive one of the larger payouts of $15,000.

EA Sports announced in 2013 that it would stop the sales of NCAA college football video games in lieu of lawsuit and licensing problems.