O'Bannon, Jr. v. National Collegiate Athletic Association et al

Filing 207

STIPULATION of Undisputed Facts Regarding Where Broadcast Money Goes filed by Edward C. O'Bannon, Jr., National Collegiate Athletic Association. (Bojedla, Swathi) (Filed on 6/12/2014) Modified on 6/13/2014 (cpS, COURT STAFF).

Download PDF
1 2 3 4 5 6 7 8 9 10 11 12 13 14 MICHAEL D. HAUSFELD (pro hac vice) mhausfeld@hausfeldllp.com HILARY K. SCHERRER (SBN 209451) hscherrer@hausfeldllp.com SATHYA S. GOSSELIN (SBN 269171) sgosselin@hausfeldllp.com HAUSFELD LLP 1700 K Street, NW, Suite 650 Washington, D.C. 20006 Telephone: (202) 540-7200 Facsimile: (202) 540-7201 BRUCE J. WECKER (SBN 78530) bwecker@hausfeldllp.com MICHAEL P. LEHMANN (SBN 77152) mlehmann@hausfeldllp.com ARTHUR N. BAILEY, JR. (SBN 248460) abailey@hausfeldllp.com HAUSFELD LLP 44 Montgomery Street, Suite 3400 San Francisco, California 94104 Telephone: (415) 633-1908 Facsimile: (415) 358-4980 EDWARD C. O’BANNON, JR. on behalf of himself and all others similarly situated, 21 22 Case No. 09-cv-3329-CW Plaintiffs, 19 20 Attorneys for Defendant National Collegiate Athletic Association UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 16 18 GREGORY L. CURTNER (Pro Hac Vice) gcurtner@schiffhardin.com ROBERT J. WIERENGA (SBN 183687) rwierenga@schiffhardin.com SCHIFF HARDIN LLP 350 Main St., Suite 210 Ann Arbor, MI 48104 Telephone: (734) 222-1500 Facsimile: (734) 222-1501 Plaintiffs’ Class Counsel with Principal Responsibility for the Antitrust Claims 15 17 GLENN D. POMERANTZ (SBN 112503) glenn.pomerantz@mto.com KELLY M. KLAUS (SBN 161091) kelly.klaus@mto.com ROHIT K. SINGLA (SBN 213057) rohit.singla@mto.com CAROLYN HOECKER LUEDTKE (SBN 207976) carolyn.luedtke@mto.com MUNGER, TOLLES & OLSON LLP 560 Mission Street, Twenty-Seventh Floor San Francisco, California 94105-2907 Telephone: (415) 512-4000 Facsimile: (415) 512-4077 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES v. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION (NCAA); ELECTRONIC ARTS, INC.; and COLLEGIATE LICENSING COMPANY, 23 Dept: Courtroom 2, 4th Floor Judge: Hon. Claudia Wilken Complaint filed: May 5, 2009 Defendants. 24 25 26 27 28 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES Case No. 09-cv-3329-CW 1 23677994.1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 WHEREAS, in response to the Court’s request that the National Collegiate Athletic Association (“NCAA”) and the Antitrust Plaintiffs work to produce a joint statement of undisputed facts regarding who makes the deals for the live broadcast and rebroadcast of FBS football and Division I men’s basketball games and then where the money for those games goes: IT IS HEREBY STIPULATED AND AGREED THAT: Regular Season and Conference Championship FBS Football and Basketball Games 1. The NCAA does not negotiate broadcast agreements for, or receive any revenue from, regular season Division I FBS football and men’s basketball games. 2. The NCAA’s Division I member conferences and some individual member schools have agreements with television networks to license the rights to broadcast certain regular season and conference championship football and men’s basketball games. Each conference negotiates its own broadcast agreement, and the terms of those agreements are unique to each conference. The agreements are for varying amounts. Generally, the television networks pay the conferences, and the conferences then distribute that revenue to their member schools according to a formula specific to that conference. 3. Certain conferences also have established their own networks to broadcast some regular season football and men’s basketball games (those not licensed to third party telecasters). The Big Ten, Pac-12, and SEC have their own networks. Sometimes conference networks have third party owners, such as Fox which owns part of the Big 10 network. Other conferences, like the Big 12, have included in their agreements with ESPN licenses for the rights to telecast football and men’s basketball games on regional ESPN networks. For these networks, any revenue generated flows to the conferences, and the conferences distribute that revenue to their member schools according to a formula specific to that conference. 4. Certain individual schools, including the University of Texas (Longhorn Network in partnership with ESPN), which is in the Big 12 Conference, and Notre Dame (in partnership with NBC), which has retained its television broadcast rights, have established their own contracts and/or networks to broadcast regular football and men's basketball season games that are not 28 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES Case No. 09-cv-3329-CW 2 23677994.1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 broadcast under other agreements. Additionally, a number of Division I institutions have individual broadcast agreements with local or regional television networks, which televise football and men’s basketball games not televised under any conference contract. The revenues from the agreements identified in this paragraph flow directly to the individual schools. 5. Certain conferences, including the SEC, have agreements with digital media companies for the rebroadcast of football and men’s basketball games and video clips. Conferences can earn revenue from these agreements as well, and can also distribute that money to member schools. Post-Season FBS Football Games 6. The NCAA does not negotiate broadcast agreements for, or receive any revenue from, post-season Division I FBS football games (such as ‘bowl’ games and national championship games). 7. Division I FBS football postseason games include individual bowl games, the former Bowl Championship Series (BCS), and the new Division I FBS College Football Playoff. The entity that produces each of these bowl games or series negotiates its own broadcast agreements with a television network (or networks). For example, the Rose Bowl organizers negotiate a broadcast contract for that individual bowl game. The new Division I FBS College Football Playoff has directly negotiated a broadcast contract with ESPN. The NCAA does not participate in the negotiation, licensing, broadcast or revenue distribution for these games. Revenue from the broadcast of post-season games is (or will be) distributed either to the conferences of the participating teams (which then distribute the money to all schools in the conference according to an agreed-upon formula for that conference) or directly to schools that participate in the games. So, for example, when the Pac-12 champion and the Big 10 champion play in the Rose Bowl, the money for the broadcast of the Rose Bowl is paid to the Rose Bowl organizers and then some of it is distributed to the Pac-12 conference and the Big 10 conference. Those conferences, in turn, distribute that money to all schools in each conference, not just to the 27 28 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES Case No. 09-cv-3329-CW 3 23677994.1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 participating school. Therefore, the last place team in the conference may receive broadcast revenue from the first place team’s participation in the Rose Bowl. NCAA Division I Men’s Basketball Championship 8. The NCAA has agreements with Turner Broadcasting and CBS to broadcast the Division I men’s basketball championships. CBS and Turner pay the NCAA for the right to broadcast this NCAA championship. NCAA Revenue 9. The revenue from the CBS and Turner broadcast agreements constitutes approximately 85% of the NCAA’s revenue. The vast majority of the remaining NCAA revenue comes from ticket sales to championships events and broadcast agreements for other sports’ championship tournaments. A small percentage of the NCAA’s revenue is from other licensing agreements, such as the former licensing agreement with CLC for the use of the NCAA’s trademarks in the EA videogames and licensing agreements for the use of archival broadcast footage for which the NCAA holds the copyright. 10. The NCAA distributes revenues from the Division I Men’s basketball championship to participating member schools according to a formula that accounts for the tournament performance of each participating member school over the previous six years. In most cases, the NCAA distributes this money to the conferences of each participating school. That money is then distributed by the conference to all members of the conference, including those that did not participate in the tournament, based on the conference’s revenue-sharing agreement. The NCAA also pays travel costs associated with participating in the tournament. 11. Additionally, the NCAA distributes revenue to member schools based on the number of sports and scholarships the school offers. This distribution is not connected to participation in the men’s basketball tournament. 12. The NCAA also distributes revenue through its Student Opportunity Fund. It also funds an injury insurance program for student-athletes. 27 28 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES Case No. 09-cv-3329-CW 4 23677994.1 1 2 3 4 5 6 7 8 9 10 13. The NCAA also spends revenue to host championships in men’s basketball and other sports and pay travel costs associated with those championships. Conference Revenue 14. There are thirty-two athletic conferences in Division I that are comprised of member schools. 15. The conferences receive revenue as described earlier. 16. Most conferences distribute net revenue to member schools equally. Some conferences actually charge their member schools for membership rather than distributing money. As non-profits, the distributions are contained in filings made with the IRS (called “Form 990s”), many of which are on the exhibit list and the parties can provide if it would be helpful. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES Case No. 09-cv-3329-CW 5 23677994.1 1 Respectfully submitted, 2 HAUSFELD LLP 3 4 By: 5 6 7 8 /s/ Sathya S. Gosselin_____________ Sathya S. Gosselin Plaintiffs’ Co-Lead Class Counsel with Principal Responsibility for Antitrust Claims 1700 K St. NW, Suite 650 Washington, DC 20006 Dated: June 12, 2014 MUNGER, TOLLES & OLSON LLP 9 10 By: __/s/ Carolyn Hoecker Luedtke ______________ Attorneys for Defendant NCAA 560 Mission Street, Twenty-Seventh Floor San Francisco, California 94105-2907 11 12 13 Dated: June 12, 2014 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES Case No. 09-cv-3329-CW 6 23677994.1

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.


Why Is My Information Online?