Marshall v. ESPN Inc.

111 F. Supp. 3d 815, 2015 WL 3606645
CourtDistrict Court, M.D. Tennessee
DecidedJune 8, 2015
DocketNo. 3:14-01945
StatusPublished
Cited by1 cases

This text of 111 F. Supp. 3d 815 (Marshall v. ESPN Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. ESPN Inc., 111 F. Supp. 3d 815, 2015 WL 3606645 (M.D. Tenn. 2015).

Opinion

MEMORANDUM

KEVIN H. SHARP, District Judge.

This is a putative class action brought by current and former Student Athletes who played National Collegiate Athletic Association (“NCAA”) football (at the Football Bowl Subdivision “FBS” level) or Division I college basketball. Named as Defendants are a host of conferences, networks, and licensors who allegedly profited from the broadcast and use of those Student Athletes’ names, likenesses and images without permission. Pending before the Court are Motions to Dismiss (Docket Nos. 214, 218 & 226) filed on behalf of all Defendants. The Court heard oral arguments on those Motions on April 13, 2015, and, for the reasons that follow, will grant the Motions.

I. Background

Plaintiffs are eight former college football players (three each from Vanderbilt University and the University of Tennessee, and one each from the University of Washington and the University of Tennessee, Chattanooga) and two former college basketball players (one each from Tennessee State University and the University of Maryland Eastern Shore).

Defendants are more than two dozen separate entities that fall into three camps. The assorted athletic conferences, specifically the Atlantic Coast Conference, Big East Conference, Inc., Big 12 Conference, The Big Ten Conference, Inc., Conference USA, Ohio Valley Conference, Pac-12 Conference, and Southeastern Conference (collectively, the “Conference Defendants”), manage athletic competition among teams and sell the rights to broad[821]*821cast conference games. The networks, specifically, ESPN Inc., CBS Broadcasting Inc., NBCUniversal Media, LLC, ABC, Inc., Fox Broadcasting Company, Big Ten Network, LLC, SEC Network, and Longhorn Network (the “Network Defendants”) 1, purchase media content, including college sports from content owners, or produce it internally, and then telecast that content to television viewers. The licensing agencies, specifically, Outfront Media Sports, Inc. (f/k/a CBS Collegiate Sports Properties, Inc.), IMG Worldwide, LLC, IMG College, LLC, William Morris Endeavor Entertainment, LLC, JMI Sports LLC, Learfield Sports LLC, T3 Media, Inc., and TeleSouth Communications, Inc. (collectively, the “Licensing Defendants”), offer brand development and management and act as a conduit in licensing college teams’ intellectual property.

Plaintiffs have filed a 194-paragraph, 39-page Complaint, the essence of which is that they “and other similarly situated current and former FBS football and NCAA Division I basketball Student Athletes ... have been foreclosed from the market for the licensing, use, and sale of their names, images, and likenesses!.]” (Docket No. 1, Complaint ¶ 4). The Complaint alleges:

5. Defendants’ collective action of excluding Student Athletes from the marketplace of their own names, images, and likenesses has caused the unlawful result of fixing the amount that current and former Student Athletes are paid for the licensing and sale of their names, images, and likeness at zero or, at most, their “cost of attendance.”
6. Defendants’ use of Student Athletes’ names, images, and likenesses is unauthorized because Student Athletes have not legally assigned their publicity rights to Defendants, the NCAA, or third parties acting on behalf of the NCAA.
8. Broadcast Defendants have conspired to fix the amount Student Athletes are paid for the licensing, use, and sale of their names, images, and likenesses at zero or, at most, a portion of the cost of attendance, by colluding with the NCAA and Conference Defendants. Broadcast Defendants, to their own commercial advantage, refuse to negotiate or enter into contracts with Student Athletes. In so doing, Broadcast Defendants have adopted and implemented the restrictive bylaws and rules of the NCAA and Conference Defendants.
9. Licensing Defendants have conspired to fix the amount Student Athletes are paid for the licensing, use, and sale of their names, images, and likenesses at zero or, at most, a portion of the cost of attendance, by colluding with the NCAA and Conference Defendants. Licensing Defendants refuse to negotiate or enter into contracts with Student Athletes. In so doing, Licensing Defendants have adopted and implemented the restrictive rules and bylaws of the NCAA and Conference Defendants.
10. The conspiracy between and among the Broadcast Defendants, Licensing Defendants, Conference Defendants and the NCAA has created a marketplace resembling a plantation type arrangement where Defendants financially benefit in the collective amount of billions of dollars, while Student Athletes, the driving force of college sports, [822]*822receive nothing more than their cost of attendance. This conspiracy has created an anticompetitive marketplace in which all Defendants commercially exploit the substantial value of each Student Athletes’ images.

(Id. ¶¶ 5-6 & 8-10, internal parenthetical omitted).

Though the NCAA is alleged to be a part of the conspiracy, it not named as a Defendant in this action. Nevertheless, Plaintiffs’ tacitly concede that any discussion of the alleged unlawfulness must acknowledge it existence and the role it plays in college sports.

According to the Complaint, the NCAA was founded in 19063 and “is an unincorporated association consisting of more than 1,200 colleges, universities, and athletic conferences” in the United States and “serves as the governing body of its member schools and athletic conferences.” (Id. ¶76). The fundamental purpose of the NCAA is to:

maintain intercollegiate athletics as an integral part of the education program and the athlete as an integral part of the educational program and the athlete as. a part of the student body and, by so doing, retain a clear line of demarcation between intercollegiate athletics and professional sports.

(Id. ¶ 97).

In accordance with NCAA rules, intercollegiate sports are limited to participation of “amateur” athletes:

Student-athletes- shall be amateurs in intercollegiate sport, and their participation should be motivated primarily by education and by the physical, mental and social benefits to be derived: Student participation in intercollegiate athletics is an avocation, and student-athletes should be protected from commercial exploitation by professional and commercial enterprises.

(Id. ¶ 95). A Student Athlete may lose his or her amateur status if he or she:

a. Uses his or her athletics skill (directly or indirectly) for pay in any form in that sport;
b. Accepts a promise of pay even if such pay is to be received following completion of intercollegiate athletics participation;
c. Signs a contract or commitment of any kind to play professional athletics, regardless of its legal enforceability or any consideration received;
d. Receives, directly or indirectly, a salary, reimbursement of expenses or any other form of financial assistance from a professional sports organization based on athletics skill or participation, except as permitted by NCAA rules and regulations;
e.

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111 F. Supp. 3d 815, 2015 WL 3606645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-espn-inc-tnmd-2015.