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NCAA ANNOUNCES APPEAL INTENT; SCHOOLS TO BE HURT BY VERDICT?
Published May 8, 1998
The NCAA formally announced yesterday that it "will appeal the multimillion-dollar verdict levied against it by a federal jury" in Kansas City, KS, according to Steve Rock of the K.C. STAR. The jury awarded $22.3M in damages to coaches effected by the NCAA's restricted-earnings rule. The damages were automatically tripled, bringing the total to $67M. The appeal means the NCAA "may have to post bond" of around $1M, and it will "continue paying at least two outside legal firms," one from IL and one from MI. Rock writes the "whole process could drag on for a year, perhaps longer." In terms of a possible settlement before the jury trial, NCAA General Counsel Elsa Cole said the organization had told a mediator to go as high as $18M, while plaintiffs were seeking around $40M. Rock adds that "some members of the NCAA family are wondering how much longer the case will last." OK State basketball coach Eddie Sutton: "I don't think the NCAA can win. Let's move on" (K.C. STAR, 5/8). The case now goes to the U.S. Court of Appeals for the 10th Circuit in Denver where a three-judge panel or an entire court will render a decision. Experts say that an appeal of that decision to the Supreme Court is also probable (USA TODAY, 5/8). WHO WILL PAY? In San Antonio, Clifford Broyles writes there is "no indication" how the NCAA plans to "come up with the money, but speculation has centered on taking money from the $140 million distributed annually from championship events. Some have said it could mean that schools will get about $200,000 less from NCAA coffers than usual. That's a significant blow to any budget, crippling to some" (EXPRESS- NEWS, 5/8). In Dallas, Cathy Harasta writes on the decision under the header, "NCAA Lawsuit Losses Punish Member Institutions The Most" (DALLAS MORNING NEWS, 5/8).