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).

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MICHAEL D. HAUSFELD (pro hac vice)
[e-mail]
HILARY K. SCHERRER (SBN 209451)
[e-mail]
SATHYA S. GOSSELIN (SBN 269171)
[e-mail]
HAUSFELD LLP
1700 K Street, NW, Suite 650
Washington, D.C. 20006
Telephone: [phone]
Facsimile:
[phone]
BRUCE J. WECKER (SBN 78530)
[e-mail]
MICHAEL P. LEHMANN (SBN 77152)
[e-mail]
ARTHUR N. BAILEY, JR. (SBN 248460)
[e-mail]
HAUSFELD LLP
44 Montgomery Street, Suite 3400
San Francisco, California 94104
Telephone: [phone]
Facsimile:
[phone]

EDWARD C. O’BANNON, JR. on behalf of
himself and all others similarly situated,

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Case No. 09-cv-3329-CW

Plaintiffs,

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Attorneys for Defendant
National Collegiate Athletic Association

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA

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GREGORY L. CURTNER (Pro Hac Vice)
[e-mail]
ROBERT J. WIERENGA (SBN 183687)
[e-mail]
SCHIFF HARDIN LLP
350 Main St., Suite 210
Ann Arbor, MI 48104
Telephone: [phone]
Facsimile:
[phone]

Plaintiffs’ Class Counsel with Principal
Responsibility for the Antitrust Claims

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GLENN D. POMERANTZ (SBN 112503)
[e-mail]
KELLY M. KLAUS (SBN 161091)
[e-mail]
ROHIT K. SINGLA (SBN 213057)
[e-mail]
CAROLYN HOECKER LUEDTKE (SBN
207976)
[e-mail]
MUNGER, TOLLES & OLSON LLP
560 Mission Street, Twenty-Seventh Floor
San Francisco, California 94105-2907
Telephone: [phone]
Facsimile:
[phone]

STIPULATION OF UNDISPUTED FACTS
REGARDING WHERE BROADCAST
MONEY GOES

v.
NATIONAL COLLEGIATE ATHLETIC
ASSOCIATION (NCAA); ELECTRONIC
ARTS, INC.; and COLLEGIATE LICENSING
COMPANY,

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Dept:
Courtroom 2, 4th Floor
Judge:
Hon. Claudia Wilken
Complaint filed: May 5, 2009

Defendants.

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STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES
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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

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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

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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.

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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.

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STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES
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Respectfully submitted,

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HAUSFELD LLP

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By:

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/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

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By: __/s/ Carolyn Hoecker Luedtke ______________
Attorneys for Defendant NCAA
560 Mission Street, Twenty-Seventh Floor
San Francisco, California 94105-2907

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Dated: June 12, 2014

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STIPULATION OF UNDISPUTED FACTS REGARDING WHERE BROADCAST MONEY GOES
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