SPORTS CONFLICT REVIEW: NCAA LEGAL FEES AND ARBITRATION UNDER THE MICROSCOPE

Date: March 31, 2025

Introduction

This week has seen significant legal and policy developments across collegiate, professional, and Olympic sports. These events hold substantial implications for professionals involved in sports mediation, arbitration, and negotiation.

Collegiate Sports

Legal Fee Request in NCAA Athlete Pay Settlement

Law firms Winston & Strawn and Hagens Berman Sobol Shapiro have requested over $515 million in legal fees after negotiating a $2.8 billion settlement with the NCAA regarding compensation for student-athletes. The settlement addresses lawsuits claiming the NCAA violated U.S. antitrust laws by prohibiting schools from paying athletes. This landmark settlement allows schools to compensate athletes directly, potentially resulting in $20 billion in payments over the next decade. An expert report suggests the ongoing payments could lead to an additional $200 million in fees for the plaintiffs’ lawyers, totaling around $750 million. U.S. District Judge Claudia Wilken will evaluate the fairness of the request. The NCAA has denied wrongdoing and did not comment. Lead attorneys justified their request by noting the transformative impact of the settlement and the substantial risk their firms undertook. The firms’ requested fees are based on high hourly rates, with Winston & Strawn and Hagens Berman dedicating over 40,400 and 35,900 hours to the lawsuits, respectively. ​Reuters

Professional Sports

Arbitration Practices in Professional Sports Under Scrutiny

A recent comparative analysis of arbitration practices in professional sports has highlighted significant variations in fairness, transparency, and outcomes across different leagues. While arbitration is valued for its efficiency and confidentiality, the study underscores the need for standardized practices to ensure equitable resolutions in sports disputes. ​

Olympic Sports

Jordan Chiles Appeals Olympic Medal Decision to Swiss Supreme Court

U.S. gymnast Jordan Chiles has appealed to Switzerland’s supreme court to overturn a Court of Arbitration for Sport (CAS) ruling that revoked her 2024 Olympic bronze medal in the floor exercise. The appeal, supported by the US Olympic and Paralympic Committee and USA Gymnastics, argues that CAS hearings violated her right to be heard by not considering video evidence proving her appeal was within the allowed time. There are also claims of a conflict of interest by the CAS panel president due to prior ties with Romania. Initially awarded the bronze after an appeal to her scoring, Chiles lost her medal when it was discovered the appeal came four seconds late, promoting Romania’s Ana Barbosu to third. The decision has led to significant social media harassment for Chiles, affecting her emotionally. This legal dispute could extend over months or years as she continues to fight for the recognition she believes she rightfully earned. ​The Guardian

Emerging Trends and Policy Changes

Proposed Reforms to the U.S. Center for SafeSport

A bipartisan bill, the Safer Sports for Athletes Act, has been introduced by four members of Congress aimed at making significant changes to the U.S. Center for SafeSport. The main focuses are to impose a 180-day limit on resolving abuse cases, enhance communication between the center and survivors, and potentially increase a grant to the center fivefold to $10 million for training and education purposes. The bill also mandates providing victim advocates at no cost and assigning case managers to ensure timely updates. SafeSport CEO Ju’Riese Colon noted that although the reforms could cost over $4.5 million, optimizing funding for investigations remains a challenge. Critics argue that the agency has struggled with efficiency and effectiveness, particularly with prolonged case resolutions. The lawmakers, including Deborah Ross, Dave Joyce, Don Bacon, and Kathy Castor, aim to ensure the center is better resourced to handle its caseload but acknowledge the bill likely won’t advance until the next Congressional session. ​AP News