(Re)Dividing the Athletic Revenue Pie - Part 3

Yesterday, we posted about a California bill that would change student-athletes into professionals with revenue sharing. Today, we note a case before the National Labor Relations Board (NLRB) that would make student-athletes into employees of private colleges and universities. UC, as a public-sector entity - would not be directly affected. However, California labor law for the public sector in many respects follows federal law. The state's PERB would likely follow the NLRB precedent, assuming the NLRB ultimately rules student-athletes to be employees.

From Politico: The University of Southern California, a major sports conference and the governing body of big-time collegiate athletics are violating federal labor law by restricting athletes’ social media activity, the National Labor Relations Board alleged on Thursday. An NLRB official in Los Angeles issued a complaint against USC, the Pac-12 Conference and the National Collegiate Athletics Association in a case that could clear the way to unionization — at least at private universities that are subject to National Labor Relations Act. The board wants an administrative law judge to order the NCAA, USC and Pac-12 to “cease and desist from misclassifying” players as student-athletes and instead label them as employees.

The NLRB’s complaint alleges the three entities maintained illegal “handbook rules” that violate federal statute, and misclassify both scholarship and walk-on athletes in football and basketball as non-employees, thereby denying them their right to unionize. The labor board specifically targeted USC social media and interview policies that require athletes to “be positive,” use private posts, and “don’t do anything to embarrass yourself, the team, your family or the University.” ...

An NLRB victory would further upend a college sports landscape that is already undergoing significant changes, though the ramifications for public universities are somewhat uncertain. Public schools would remain subject to the laws of their respective states, as opposed to federal law, though if the NLRB judge upholds the joint employer designation then schools affiliated with the NCAA or conferences like the Pac-12 could also face similar action...

Further complicating matters, USC is planning to leave the conference in 2024 along with rival UCLA. A hearing on the case is scheduled for Nov. 7 in Los Angeles, according to the NLRB complaint.

Full story at https://www.politico.com/news/2023/05/18/nlrb-usc-ncaa-athletes-rights-00097794.