Athetics association claims breach of contract, seeks to halt settlement
The NCAA has cried foul and filed a suit alleging breach of contract against EA over the publisher's proposed settlement with college athletes seeking compensation for the use of their likenesses in EA Sports games.
As reported by USA Today, the suit is being filed in a Georgia court and claims that EA failed to maintain required liability insurance to cover any costs of the company's license deal.
The suit further alleges that the CLC, also named as a defendant, failed to ensure the publisher lived up to its end of the bargain and failed to supply the NCAA with documentation it was entitled to inspect.
The NCAA is seeking to block the settlement with the student athletes – rumored to be in the ballpark of $40 million – that removed EA and the CLC from the legal row over uncompensated likenesses and left the athletics association the lone defendant.
The suit also seeks that EA be required to cover any future liability against the NCAA relating to the licensed games, legal fees incurred in the defense against those claims, and the costs and legal fees of the new suit against EA and the CLC.
This is a tough break for both EA and the CLC, which were clearly eager to escape the years of legal rows after a U.S. Court ruled that the images of college athletes were not protected speech.
The CLC clearly wants no part in the new proceedings.
"CLC is caught in the middle of a dispute between NCAA and EA which should not involve us," said spokesperson Andrew Giangola.
"CLC has valued relationships with both the NCAA and EA and while we hope they can soon resolve their dispute, we see no reason for CLC to be involved."