South Dakota sues NCAA for compensation for athletes

PIERRE — South Dakota is suing the NCAA on behalf of its two largest universities, saying a proposed settlement with student-athletes over financial compensation places an unfair burden on smaller schools.

Attorney General Marty Jackley announced Tuesday that his office and the South Dakota Board of Regents, representing South Dakota State University and the University of South Dakota, have filed a lawsuit against the NCAA, the governing body of college sports in the United States.

The complaint, filed Tuesday in Brookings County Circuit Court, alleges that a proposed $2.8 billion settlement between the NCAA and the “Power Four” conferences unfairly forces smaller schools to bear a disproportionate share of the settlement’s cost.

The money from such a deal would go primarily to “Power Four” student-athletes whose earning potential while in college was limited by the NCAA’s amateur rules. Jackley said that while student-athletes deserve financial reward for their hard work and effort, the burden of the deal should not fall on smaller universities like the South Dakota schools.

“As a former college student-athlete, I believe strongly in a system that provides our athletes with competitive opportunities and treats all of our athletes fairly and equally,” Jackley said in a statement. “I am disappointed that our athletes and our South Dakota universities are paying the price for a settlement that does not address any of our conduct. This settlement illegally and blatantly discriminates against female student-athletes by limiting them to less than 10 percent of revenue.”

Patrick Lalley / Sioux Falls Live

The complaint states that the Power Four conferences caused the “vast majority” of the damages sought by the settlement, but that the responsible conferences are required to pay a lesser share of the financial burden.

South Dakota Board of Regents Chairman Tim Rave said it’s a matter of fairness.

“The South Dakota Board of Regents, the Attorney General’s Office and our universities are taking steps to express our concerns about the disproportionate distribution of our state’s Division I athletic programs under the NCAA’s proposed settlement,” Rave said in the state’s news release. “This settlement will have a significant impact on our two largest athletic programs, and we appreciate the support of the Attorney General’s Office in addressing this issue.”

The presidents of South Dakota State University and the University of South Dakota have said the proposed deal would reduce NCAA revenue for institutions of their size. Both universities agree the deal will have significant impacts on their athletic programs without providing comprehensive benefits to the state’s student-athletes.

No hearing date has yet been set for this complaint.

The presidents of SDSU and USD issued statements supporting the state’s lawsuit.

“This settlement has significant implications for our athletic programs without providing comprehensive benefits to our student-athletes. We appreciate the support of the Attorney General’s Office in this matter to achieve fair results for our state and our universities,” said SDSU President Barry Dunn.

“The University of South Dakota is grateful for the continued support of the Attorney General’s Office as we work to address our concerns to ensure fair treatment for our state and our universities. The proposed settlement between the House of Representatives and the NCAA will have a significant impact on our athletic program and our ability to support our student-athletes,” said USD President Sheila Gestring.

Patrick Lalley is the editor of Sioux Falls Live. Contact him at [email protected].