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

Filing 237

Administrative Motion to File Under Seal Defendant NCAA's Deposition Designations filed by National Collegiate Athletic Association. (Attachments: # 1 Declaration of Jeslyn A. Miller, # 2 Proposed Order, # 3 NCAA's Deposition Designations, # 4 Exhibit A, # 5 Exhibit B, # 6 Exhibit C, # 7 Exhibit D, # 8 Exhibit E, # 9 Exhibit F, # 10 Exhibit G, # 11 Exhibit H, # 12 Exhibit I, # 13 Exhibit J, # 14 Exhibit K, # 15 Exhibit L, # 16 Exhibit M, # 17 Exhibit N, # 18 Exhibit O, # 19 Exhibit P, # 20 Exhibit Q, # 21 Exhibit R, # 22 Exhibit S, # 23 Exhibit T, # 24 Exhibit U, # 25 Exhibit V - REDACTED, # 26 Exhibit V - SEALED, # 27 Exhibit W, # 28 Exhibit X, # 29 Exhibit Y, # 30 Exhibit Z, # 31 Exhibit AA, # 32 Exhibit BB)(Miller, Jeslyn) (Filed on 6/23/2014) Modified on 6/24/2014 (kcS, COURT STAFF).

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EXHIBIT O IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 ·1· · · ·2· · · ·3· · · ·4· · · ·5 Page 1 · · · · · · ·UNITED STATES DISTRICT COURT · · · · · ·NORTHERN DISTRICT OF CALIFORNIA · · · · · · · · · OAKLAND DIVISION ·- - - - - - - - - - - - - - - - - - -x ·In Re:· NCAA Student-Athlete Name· · :· Case No. ·and Likeness Licensing Litigation· · :· 09-CV-1967 · · · · · · · · · · · · · · · · · · · :· CW ·- - - - - - - - - - - - - - - - - - -x ·6 ·7 ·8· · · · · · · · · · · ·*· · *· · * ·9· · · · · · · Videotaped Deposition of ROBERT 10· ·McCORMICK, taken by the Defendant, Wednesday, 11· ·May 15, 2013, held at the offices of Hausfeld LLP, 12· ·1700 K Street, Washington, DC, commencing at 13· ·9:13 a.m. before Jamie I. Moskowitz, a Shorthand 14· ·Reporter and Notary Public. 15· · · · · · · · · · · ·*· ·*· ·* 16 17 18 19 20 21 Objection, 702. Plaintiffs object to the entirety of the NCAA's designation of Dr. McCormick's deposition. Plaintiffs have not sought to elicit testimony from Dr. McCormick at trial. Moreover, the bulk of the NCAA's designations are to questions and answers beyond the scope of Dr. McCormick's expert reports and expertise, as Dr. McCormick has repeatedly noted at his deposition. That testimony is inadmissible and should be stricken. 22 23 24 25 Designation Color Key Blue = NCAA Affirm Desigs. Orange = Pls' Counter Desigs. Fuchsia = NCAA Rebuttal Desigs Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 6 ·1· · · · · · · · ·MS. FAHMY:· Christina Fahmy, ·2· · · · Kilpatrick Townsend & Stockton on behalf of the ·3· · · · Collegiate Licensing Company. ·4· · · · · · · · ·MR. PAYNTER:· Stuart Paynter for the ·5· · · · plaintiff's side. ·6· · · · · · · · ·MR. ARMSTRONG:· Robert Armstrong for ·7· · · · plaintiffs. ·8· · · · · · · · ·MR. HAUSFELD:· Michael Hausfeld for ·9· · · · the plaintiffs. 10· · · · · · · · ·THE VIDEOGRAPHER:· Thank you. 11· · · · · · · · ·Will the court reporter please swear 12· · · · in the witness. 13· · · · · · · · · · · · · ·*· · *· · * 14· · · · · · ·ROBERT McCORMICK, after having been first 15· · · · duly sworn, was examined and testified as 16· · · · follows: 17· ·EXAMINATION BY 18· ·MR. CURTNER: 19· · · · Q· · · · Good morning. 20· · · · A· · · · Good morning, sir. 21· · · · Q· · · · Would you state your full name for the 22· ·record, please? 23· · · · A· · · · Robert Exley McCormick. 24· · · · Q· · · · Should I call you Dr. McCormick? 25· · · · A· · · · Bobby is fine if you wish. Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 7 ·1· · · · Q· · · · All right.· When were you retained in ·2· ·this matter? ·3· · · · A· · · · Sometime in March of this year. ·4· · · · Q· · · · When were you first contacted about -·5· · · · · · · · ·MR. CURTNER:· Did somebody just join ·6· · · · or leave? ·7· ·BY MR. CURTNER: ·8· · · · Q· · · · When were you first contacted about ·9· ·potentially being retained? 10· · · · A· · · · Sometime in March of this year. 11· · · · Q· · · · And who contacted you? 12· · · · A· · · · Bruce Wecker, I believe it was. 13· · · · Q· · · · And was that the first you knew about 14· ·this case? 15· · · · A· · · · No, I was aware of the case from the 16· ·press. 17· · · · Q· · · · Had you had any contact with the case 18· ·or the filings in the case other than what you read 19· ·in the press? 20· · · · A· · · · No, I had not. 21· · · · Q· · · · Had you spoken to any lawyers about 22· ·this case prior to March of 2013? 23· · · · A· · · · None of the lawyers in this case. 24· · · · Q· · · · Had you spoken to any of the 25· ·economists or experts in this case prior to that? Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 222 ·1· · · · Q· · · · I mean the sports that we're talking ·2· ·about here, the so-called major college football and ·3· ·basketball, whatever that means. ·4· · · · A· · · · What's on the horizontal axis in the ·5· ·diagram you're asking me to hypothetically draw? ·6· · · · Q· · · · Yeah, quantity. ·7· · · · A· · · · Quantity of what? ·8· · · · Q· · · · And price? ·9· · · · A· · · · Of what? 10· · · · Q· · · · Quantity of whatever unit of input you 11· ·want to talk about.· The input of labor. 12· · · · A· · · · Well, it wouldn't -- didn't -- so 13· ·you're asking me what the demand for labor looks 14· ·like?· I don't understand the question.· I need 15· ·to -Objection O, V, 402 16· · · · Q· · · · I'm asking you what the supply of 17· ·student athlete labor looks like? 18· · · · A· · · · Well, what I say in my paper is and 19· ·what others have said in this case is that it's very 20· ·inelastic, maybe perfectly inelastic; and that's not 21· ·my opinion, that's what others have said. 22· · · · Q· · · · You quote Donald Remy's letter to Joe Objection 402 23· ·Nocera on that subject and say you agree with it, 24· ·right? 25· · · · A· · · · Did I say I agree with it? Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 223 ·1· · · · Q· · · · Yeah, I think you say you find ·2· ·yourself in substantial agreement. ·3· · · · A· · · · Okay, "substantial" is the word I was ·4· ·looking for you to say. ·5· · · · Q· · · · It's at footnote 14 on page 12. Objection 402 ·6· · · · A· · · · I note in some substantial agreement. ·7· ·So there was two qualifiers there, but, yeah. ·8· · · · Q· · · · "That the supply of talent is quite ·9· ·inelastic, perhaps nearly perfectly inelastic as he 10· ·suggests;" do you see that? 11· · · · A· · · · I do.· That's what I wrote. 12· · · · Q· · · · And if you were to draw that, that 13· ·would mean that the supply function would be a flat 14· ·line parallel with the horizontal axis? 15· · · · A· · · · No, sir, it wouldn't be. 16· · · · Q· · · · All right.· What would it look like? 17· · · · A· · · · It would be a vertical line. 18· · · · Q· · · · At the quantity taken, right? 19· · · · A· · · · Yes. 20· · · · Q· · · · Okay.· So it would be a vertical line 21· ·at the quantity taken which would translate into 22· ·meaning that you would get that same quantity 23· ·supplied without regard to the price? 24· · · · A· · · · That's correct -- that's what he says, 25· ·and I note that I'm in substantial agreement with Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 224 ·1· ·him that it is quite inelastic, which is less than ·2· ·perfectly inelastic, and perhaps nearly perfectly ·3· ·inelastic.· Perhaps nearly perfectly inelastic, as ·4· ·he suggests. ·5· · · · Q· · · · Which means that you could fill up Objection 402 ·6· ·your football and basketball teams even if you ·7· ·offered less than a grant-in-aid, correct? ·8· · · · A· · · · That's the implication of that ·9· ·statement, that's correct. 10· · · · Q· · · · And would you agree with that? Objection 702, 402 11· · · · A· · · · I'd have to put myself to more careful 12· ·thought, but my first reaction to that is yes.· I'd 13· ·want to think more carefully about it, because I 14· ·haven't put myself to that question, but that's -15· ·what I'm not prepared to say without thinking about 16· ·it is whether that line goes all the way down at 17· ·zero.· But I think it does, but I want to think more 18· ·carefully about that. 19· · · · Q· · · · We could agree that there's probably 20· ·some players for whom they would not go to college 21· ·if they didn't have some aid because they couldn't 22· ·afford it, right? 23· · · · A· · · · I'm not prepared to say that because I 24· ·haven't put myself to that question.· I don't know 25· ·the answer to that question. Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 226 ·1· ·close to such, and even though there would be some ·2· ·players who would enter and some who would exit if ·3· ·the compensation level were to vary? ·4· · · · A· · · · Well, let's say what economic theory ·5· ·says and then we don't have to disagree.· If the ·6· ·line goes all the way down to zero, perfectly ·7· ·inelastic, you get the same number no matter what ·8· ·you pay.· If it's less than perfectly inelastic and ·9· ·it goes all the way down to zero, then there would 10· ·be some players who come in if you raise the price 11· ·high enough and some players that drop out if you 12· ·lower the price.· How many that is I think is very 13· ·small but -- and I -- I'm not prepared to say that 14· ·the line is perfectly inelastic.· I think really 15· ·says -- my interpretation is he says it's perfectly 16· ·inelastic and I think that it is -- I quote myself, 17· ·I'm in substantial agreement and perhaps nearly 18· ·perfectly inelastic, so there might be a very small 19· ·amount of adjustment. 20· · · · Q· · · · So it could be substantially perfectly 21· ·inelastic but you could still have some 22· ·substitution; you might have different people in 23· ·there, you still would fill up your teams -24· · · · A· · · · But -25· · · · Q· · · · -- at zero or at a hundred thousand Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 227 ·1· ·dollars? ·2· · · · A· · · · If it's virtually perfectly ·3· ·inelastic -- there will be none.· If it's perfectly ·4· ·inelastic there will be no shifting and if it's less ·5· ·than perfectly inelastic there'd be a little bit. ·6· · · · Q· · · · Okay. ·7· · · · A· · · · And it's very nearly perfectly ·8· ·inelastic, probably.· I mean so -- the question of ·9· ·how much shifting there would be is sort of a gut 10· ·check; and I think that it's widely held by the 11· ·testimony of everybody here, which I'm not in 12· ·disagreement with, that it's very nearly perfectly 13· ·inelastic. 14· · · · Q· · · · But you certainly agree as well, do 15· ·you not, sir, that the identity of the individuals 16· ·on teams would change if the price were zero on the 17· ·one hand and a hundred thousand dollars on the other 18· ·hand? 19· · · · A· · · · No, I don't -- I'm not testifying to 20· ·that. 21· · · · Q· · · · Are you saying that people would not 22· ·make different decisions in the real world between 23· ·zero and a hundred thousand dollars? 24· · · · A· · · · If the supply curve is perfectly 25· ·inelastic that's what it says.· The price doesn't Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 234 ·1· · · · Q· · · · Do you know of any things that you ·2· ·would call a cartel outside of industries that buy ·3· ·and sell commodity-type goods, like oil and oranges ·4· ·and things like that? ·5· · · · A· · · · Yeah, sure.· I mean there's -- there's ·6· ·a lot of legal cartels where entry is limited and ·7· ·output's restricted.· In agriculture, for instance, ·8· ·the government sanctions a cartel. ·9· · · · Q· · · · But again, those are commodity goods? 10· · · · A· · · · Oh, I thought you asked me about 11· ·commodities. 12· · · · Q· · · · No, I'm asking you if know of any that 13· ·do not involve commodity goods? 14· · · · A· · · · Would you consider education to be a 15· ·non-commodity good?· I don't know what you mean by 16· ·non-commodity -17· · · · Q· · · · Yeah, I think I would consider 18· ·education to be non-commodity good? 19· · · · A· · · · Okay.· Yes, I'm -- yes. 20· · · · Q· · · · You think education's a cartel? Objection 402 21· · · · A· · · · I think there's some medical 22· ·education, for instance.· There's a medical 23· ·education cartel.· And a legal education cartel. 24· · · · Q· · · · In terms of what?· How do you think a Objection O, V, 402, 702 25· ·medical education cartel works? Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 235 Objection 402 702 ·1· · · · A· · · · You have to attend a AMA sanctioned ·2· ·medical school in order to be board certified. ·3· ·There's limits on who can start a medical school and ·4· ·there's lots of restrictions there.· Depends on the ·5· ·study -·6· · · · Q· · · · And so a -·7· · · · A· · · · Look, I'm just telling you what the ·8· ·literature says.· I'm not testifying -- you ·9· ·understand I'm not testifying.· You aren't asking me 10· ·questions about my report. 11· · · · Q· · · · My question was about your views 12· ·but -13· · · · A· · · · Well, my views about life in general 14· ·don't have anything to do with my testimony in this 15· ·case. 16· · · · · · · · ·My testimony in this case is about the 17· ·expert reports of defendants' experts and Dr. Noll. 18· ·I mean I'll talk about these cartels all that you 19· ·want to, but I'm not going to testify to them and 20· ·they shouldn't be considered part of the record for 21· ·what Dr. McCormick is testifying to. Objection 402 702 22· · · · Q· · · · So I'm just trying to test your 23· ·opinions by finding out whether you know of other 24· ·examples of things that you think fit into the 25· ·cartel category that involve something other than Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 236 Objection 402 702 ·1· ·commodities, like agricultural products or oil? ·2· · · · A· · · · Well, I just gave you medical and ·3· ·legal education. ·4· · · · Q· · · · Yes, you did.· Are there any others? ·5· · · · A· · · · Well, the Ivy -- the Ivy -- you know, ·6· ·the Ivy case that I cite. ·7· · · · · · · · ·THE COURT REPORTER:· I'm sorry? ·8· · · · · · · · ·THE WITNESS:· The Ivy league case that ·9· · · · I cite. 10· ·BY MR. CURTNER: 11· · · · Q· · · · And we're going to talk about that in 12· ·a minute.· Any others? 13· · · · A· · · · I'm sure there's others, but again, 14· ·I'd have to put myself to thinking about it, but... 15· · · · · · · · ·I'm sure there's others. 16· · · · Q· · · · Would you agree that it's hard to have 17· ·a successful cartel when the product in question has 18· ·a variety of characteristics and is sold on 19· ·something other than a clear unit in exchange for a 20· ·clear dollar price? 21· · · · A· · · · That's too hard a question to ask out 22· ·of context.· I literally need -- you know, I don't 23· ·want to testify about that without some context. I 24· ·mean there's general guidelines and rules about 25· ·these kind of things, but I don't want to be Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 240 ·1· ·I'm not going to testify about it.· I didn't study ·2· ·it for purposes of testifying in this case. ·3· · · · Q· · · · But you do agree that these ·4· ·nonmonetary services to student athletes would be ·5· ·affected if the compensation levels to student ·6· ·athletes for their performance were to change? ·7· · · · A· · · · No.· I don't agree with that ·8· ·statement.· To the extent that I have an opinion ·9· ·about it, I declare what we've already discussed -10· ·let me find it for you. 11· · · · Q· · · · Go ahead, I'm sorry. 12· · · · A· · · · Earlier in this testimony we discussed 13· ·the flypaper effect and the like.· I think I want to 14· ·harken back to my testimony there -15· · · · · · · · ·THE COURT REPORTER:· I want to... 16· · · · · · · · ·THE WITNESS:· Harken back to my 17· · · · testimony there and just repeat it is the 18· · · · answer to your question.· And I'll find it for 19· · · · if you'd like me to, but where I discuss that 20· · · · in my paper. 21· ·BY MR. CURTNER: Objection 402 22· · · · Q· · · · I remember you using the term 23· ·"flypaper effect" but I'm not quite sure how it 24· ·applies to this question? 25· · · · A· · · · It applies to this question in the Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 241 Objection 402 ·1· ·following way.· There's a literature about donations ·2· ·let's say from the State of South Carolina to ·3· ·Clemson University.· If those increase is there a ·4· ·concomitant to reduction in donations by donors and ·5· ·vice versa? ·6· · · · · · · · ·So the question of flypaper effect is ·7· ·entities that receive gifts, do they really receive ·8· ·gifts, because if there is an alternative source of ·9· ·support, does the alternative source of support dry 10· ·up because they already got the gift, and that's 11· ·what that literature is about. 12· · · · · · · · ·And it's germane in this case, if you 13· ·take the position that I'm testifying to here that 14· ·the effects are mostly to transfer the rents to the 15· ·university, and then how that money gets spent is a 16· ·more complex question that's not relevant to the 17· ·inquiry here, that's what I say.· It's plausible and 18· ·indeed quite likely that what it does is it filters 19· ·back, that it's free money to the university which 20· ·then would be made up for by increased state and 21· ·private support where the rent's absent.· That's the 22· ·underlying theory. 23· · · · Q· · · · I see. 24· · · · · · · · ·And so because this money would be 25· ·made up for from these other sources potentially, Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 242 Objection 402 ·1· ·you're saying there might not be any change in ·2· ·facilities and recruiting and stadiums and things ·3· ·like that? ·4· · · · A· · · · Correct.· The reason the stadium is ·5· ·big is because it fits the business plan of the ·6· ·university. ·7· · · · Q· · · · And it satisfies customers and ·8· ·attracts customers, right? ·9· · · · A· · · · It's part of the business plan of the 10· ·university.· You know, again, the university makes a 11· ·complex business decision about what its product mix 12· ·is going to be, and the size of the stadium and the 13· ·extent of the athletic program are a part of that 14· ·complex business decision.· And I'm suggesting to 15· ·the Court that these rents flow to the university 16· ·and likely therefore just simply lead to less 17· ·external support than would otherwise be present 18· ·because they're free money and therefore the donors 19· ·don't feel the need to step up. 20· · · · Q· · · · Which is another way of saying that it 21· ·satisfies the alumni base or the public base and 22· ·makes them happier than they otherwise would be, 23· ·right? 24· · · · A· · · · Because they got free money. 25· · · · Q· · · · Because they got a sport at a -Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400 YVer1f IN RE NCAA STUDENT-ATHLETE NAME, ET AL. Robert McCormick on 05/15/2013 Page 369 ·1· · · · · · · · · · C E R T I F I C A T E ·2 ·3· · · · · · ·I, Jamie I. Moskowitz, a Shorthand ·4· ·(Stenotype) Reporter and Notary Public, do hereby ·5· ·certify that the foregoing Deposition, of the ·6· ·witness, ROBERT McCORMICK, taken at the time and ·7· ·place aforesaid, is a true and correct transcription ·8· ·of my shorthand notes. ·9· · · · · · ·I further certify that I am neither 10· ·counsel for nor related to any party to said action, 11· ·nor in any way interested in the result or outcome 12· ·thereof. 13· · · · · · ·IN WITNESS WHEREOF, I have hereunto set my 14· ·hand this 15th day of May 2013. 15· · · · · · · ·___________________________________ 16· · · · · · · ·Jamie Ilyse Moskowitz · · · · · · · · ·License No. XI01658 17 18 19 20 21 22 23 24 25 Huseby, Inc. 555 North Point Center, E., #403, Alpharetta, GA 30022 www.huseby.com (404) 875-0400

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