in this issue · nick saban, alabama coach, making $8.3 million with a po-tential $1.1 million in...

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LAW WISEGreetings from the Kansas Bar Association (KBA).

Welcome to this fifth edition of Law Wise for the 2018-2019 school year.

Coordinators: Honorable Bethany J. Roberts, Chair, LRE Committee; Anne Woods, Public Services Director; Nicolas Shump, Law Wise Editor; & Patti Van Slyke, Journal Editor

APRIL 2019 • ISSUE 5PUBLISHED BY

Calendar of events

IN THIS ISSUEIntro to the Professionalization of Sports ....1

Show Me the Money: The Big Business of College Athletics ..................................... 2

The One and Done Rule Reconsidered .... 3

College Eligibility & Professional Sports ... 3

Sports and the Law ................................... 4

Player Freedom & Professional Sports ........ 6

Lesson Plan 1: Anti-Trust Labor Law and Sports...................................................... 7

Lesson Plan 2: Paying College Athletes ..... 8

Terrific Technology for Teachers .............. 10

Financial Literacy: How to Adult ............ 11

Law Day Reminder ................................. 15

Introduction to the Professionalization of Sports

May 1 ....................................ABA Law Day

May 17 .............................. 65th Anniversaryof Brown v. Board of Education

For men and women of my generation, our earliest memories of sports did not involve uniforms, treats or participation trophies. Instead, many of us found our way to courts, playgrounds, or fields in our neighbor-hoods and local schools. Our game resembled the leagues in which we competed in middle and high schools, but there were no officials or leagues. We often had to modify our rules to accommodate the field of play or number of participants. Some of us likely dreamed of playing professionally, but we played any and all sports available—even those of our own creation.

As a youth coach and official, I can attest to the changes that have oc-curred in the dynamics of youth sports among the current generation of athletes. According to the Sports and Fitness Industry Association (SFIA) 21.5 million children between the ages of 6 to 17 compete in organized sports teams. This data includes 1.5 million children age 6 or younger. In fact, nearly 8 million children under the age of 10 compete on these teams. In terms of gender, 60 percent of boys and 47 percent of girls have joined sports teams by the age of 6.

Youth sports, and sports in general, are important sites of socializa-tion for large percentages of American youth. SFIA polls show that 34 percent of girls and 61 percent of boys claim “sports are a big part of who they are.” While many students continue to play sports through high



2 LAW WISE | APRIL 2019

school, the likelihood of those athletes having the opportunity to compete at the collegiate or professional level drops off con-siderably.

This has not, however, prevented families from supporting their children’s athletic dreams. According to a 2018 Chicago Tribune article, $15 billion has been spent on leagues, travel teams, private coaches and other expenses. Sixty percent of families spend between $1,200 to $6,000 a year, and 20 per-cent spend $12,000 annually. At the same time, 40 percent of emergency room visits for children ages 5 to 14 are for sports-related injuries. Parents and children believe that these addi-

tional expenses and opportunities might provide them a com-petitive advantage; however, research shows only two percent of athletes earn a Division I or Division II athletic scholarship.

This issue will explore the contested terrain of sports and professionalism, paying particular attention to various models with regard to athletes having the opportunity to turn profes-sional after completing high school and college. Consideration will be given to relevant legal challenges and landmark court cases involving professional sports. Additionally, the question of whether college players termed “student athletes” should receive payment for their efforts will be addressed.

Show Me the Money: The Big Business of College AthleticsAccording to data compiled by U.S.A Today, John Calipari,

head basketball coach at the University of Kentucky, is the highest paid coach in college basketball with an annual sal-ary of nearly $9.3 million. Legendary Duke basketball coach Mike Krzyzewski is next with a $7 million salary. University of Kansas coach Bill Self is fifth on the list with a total com-pensation package of just over $4 million. The top 69 coaches on the list made salaries that exceeded $1 million. Twelve of the coaches had benefits exceeding $1 million with Florida State coach Leonard Hamilton having a maximum bonus of $2.675 million.

The amounts are similar for college football coaches with Nick Saban, Alabama coach, making $8.3 million with a po-tential $1.1 million in bonuses. The fifth ranked football coach on this list earns $6.7 million annually. A 2018 Business In-sider article points out that 39 of the 50 highest paid state employees in 2017 were either college basketball (8) or college football coaches. Because he is employed by a private univer-sity, Coach K at Duke is not on the list.

In 2017, the NCAA gen-erated over $1 billion in revenue with over $800 million in television rev-enue alone. In 2010, net-works paid $10.8 billion for 14 years of tournament broadcast rights. In 2016, this contract was renegoti-ated for eight years at $8.8 billion.

The college football play-offs will pay out $6 million to each of the four partici-pants. All teams participat-ing in the semi-final games receive $2.25 million for travel and the national championship teams will

receive $2.25 million for travel expenses for the final. Teams participating in the Cotton, Fiesta, and Peach Bowls receive a payday of $4 million.

The various sports conferences receive handsome payments too. Forbes Magazine noted the Atlantic Coast Conference (ACC) received $87.5 million. The Big 12 earned $60 mil-lion. The Big 10 garnered $89.5 million in revenue. The Pa-cific Athletic Conference (PAC-12) received $62 million and the Southeastern Conference (SEC) made $70 million. Other smaller conferences and independents earned approximately $89 million collectively.

There are other sources of revenue generated through events such as the NCAA Basketball Tournament and the college football playoffs. Over $10 billion in bets are placed on the NCAA Tournament. One source puts the amount in lost pro-ductivity because of “March Madness” at $2.3 billion. Other than their athletic scholarships, the student athletes competing in these contests receive no additional compensation.

Item/Event

Sports betting on March Madness

Lost productivity due to March Madness

NCAA Basketball Tournament/March Madness Contract

Total amount paid to NCAA football teams for postseason bowl games

Highest salary for NCAA basketball coach

Highest salary for NCAA football coach

Payment per team for College Football Championship

Travel expenses per game for teams in the College Football Championship

Additional Revenue paid to players in NCAA Tournament or College Football Championship

Dollars

$10 billion/year

$2.3 billion/year

$1.1 billion/year

$458 million

$9.3 million/year

$8.3 million/year

$6 million/year

$2.24 million/game

$0.00



APRIL 2019 | LAW WISE 3

The One and Done Rule Reconsidered

When one hears about the “one and done” rule, most think of college basketball players. This is because in 2005, the NBA and the National Basketball Players Association agreed to prohibit high school basketball players from directly entering the NBA draft after graduation. This ruling left college as the main destination for elite teenage basketball players, though a few players chose to pur-sue professional basket-ball overseas until they were eligible for the NBA draft. However, most players enrolled in college for one year and then en-tered the NBA draft.

Closely tied to this rule is a documentary made by Josh Swade in 2016, fo-cusing on Ben Simmons. Simmons, originally from Australia, moved to the U.S. to play high school basketball before enroll-ing at LSU for his obliga-tory one year in college. Simmons ultimately was the first player selected in the draft, and the film showed the challenges and hypocrisy of this rule, as Simmons spent the ma-jority of his time focusing on basketball. Simmons noted there was not a possibility of graduating in one year, and he dropped out of LSU at the conclusion of the basketball season.

With the controversy and convictions regarding payment to players and their families through intermediaries of Adidas employees, there is renewed interest in reviewing this decision. USA Today reported in February of 2019 that the NBA sent a formal proposal to the player’s union to eliminate the require-ment that players be 19 years old to enter the draft.

College Eligibility and Professional Sports Across the Board

Top high school hockey players are allowed to enter the NHL draft and still return to school. They can even sign with agents and retain their amateur status. If they enroll in college, they cannot retain their agent. If the high school player enters college, the team that drafted the player retains its professional

rights for four years. Eli-gible college junior play-ers may even re-enter the draft if they have not signed professionally after two years. A simi-lar rule exists in Major League Baseball for col-lege baseball players.

The situation is consid-erably different for aspir-ing baseball players in the Dominican Republic, which has produced sev-eral Hall-of-Fame, league All-Stars, and top pros-pects including Pedro Martinez, Alex Rodri-guez, Manny Ramirez, Yordano Ventura, John-ny Cueto, and numerous others. At sixteen years of age, eligible prospects can sign with academies

affiliated with every MLB club, including the Kansas City Royals. In this environment, a sixteen-year old unsigned pros-pect could be considered a has-been.

The resistance against these types of arrangements with the NBA may have to do with the ability to scout the available talent prior to using a draft pick on a young player coming right out of high school. Critics of the rule point out that NBA teams typically draft European players who are allowed to continue playing in their home countries for a few years be-fore they are required to join an NBA franchise. However, the same flexibility does not currently exist for elite high school basketball players.

With the formal request of the NBA to lower the age back to 18 for draft-eligible players, there is not likely to be any type of legal challenge to the current rules. What remains to be seen is how the college game will respond to the potential loss of elite players like Zion Williamson who would almost certainly bypass college for the NBA.




There have been a few landmark court cases, arbitration pro-ceedings, and legislation regarding collegiate and professional athletes and their desire to have more freedom in pursuit of their professional goals. Following is a list of the most notable:

Federal Baseball Club v. National League (1922) – In 1915, the Federal League had folded, but not all teams were bought out by owners of Major League clubs. Several of these clubs sued MLB under the 1914 Clayton Antitrust Act. The initial trial found in favor of the plaintiff. This ruling was over-turned by the court of appeals. In a unanimous ruling, the Su-preme Court found that baseball was not defined as “interstate commerce” and was exempt from the Sherman Antitrust Act.

Toolson v. New York Yankees, Inc (1953) – In 1949, George Toolson pitched for the Newark Bears, a Triple A farm team for the New York Yankees. Toolson felt he deserved a shot to play in the major leagues with the Yankees or another team. However, the Reserve Clause greatly restricted the free-dom and options of professional baseball players because they could only seek a release or trade from their current team. Free

agency as we know it did not exist. The next year the Bears folded and the Yankees assigned Toolson to their Class A af-filiate the Binghamton Triplets. Toolson refused to report and sued, challenging the Reserve Clause.

State Compensation Insurance Fund v. Industrial Com-mission of Colorado (1957) – Ray Dennison, a football player for the Fort Lewis A&M Aggies died of a head injury while playing football. His widow filed for workmen’s compensation and death benefits. The Industrial Commission of Colorado granted him these benefits, but the State Compensation Insur-ance Fund sued to dispute this decision. However, the NCAA argued that Dennison was not an employee and therefore not eligible for these benefits. To respond to this case, the NCAA executive director, Walter Byers crafted the concept of “student athlete.” As a student, Dennison was not eligible for workmen’s compensation, and his widow could not claim death benefits.

Flood v. Kuhn (1972) – Curt Flood was a player for the St. Louis Cardinals who had become one of the top defen-sive players in baseball. When the Cardinals wanted to trade

Sports and the Law




Flood to the Philadelphia Phillies, Flood sued Bowie Kuhn and Major League Baseball to challenge the Reserve Clause as George Toolson had done nearly twenty years earlier. In the earlier Federal Baseball Club ruling, the Justices ruled that baseball was engaged in interstate commerce. In a 5-3 deci-sion, the court upheld MLB’s antitrust exemption and voted against Curt Flood.

The Seitz Decision (1975) – This is the name given to the 1975 ruling by arbitrator Peter Seitz regarding the contracts of major league pitchers Andy Messersmith and Dave McNally. Neither players’ contract was renewed by their clubs for the next year. Because of this lag in contract, Seitz ruled “There is no contractual bond between these players and the Los Angeles and the Montreal clubs, respectively. Absent such a contract, their clubs had no right or power, under the Basic Agreement, the Uniform Player Contract or the Major League Rules, to reserve their services for their exclusive use for any period be-yond the renewal year in the contracts which these players had heretofore signed with their clubs.” There were legal challeng-es initiated by Major League Baseball, but all failed, and in 1976, MLB and the Major League Baseball Players Associa-tion signed a new collective bargaining agreement that allowed players with six years of experience to be free agents.

Curt Flood Act of 1998 – In 1998, Congress passed and President Bill Clinton signed into law the Curt Flood Act. This act amended the Clayton Antitrust Act to make Major League Baseball subject to antitrust policy regarding players and employment practices.

Waldrep v. Texas Employer’s Insurance Association (2000) – Kent Waldrep suffered a catastrophic injury in 1974 during a game against Alabama; he broke his fifth cervical vertebrae and was paralyzed from the neck down. Though TCU paid for some of his medical bills, they eventually re-fused to pay further. In 1997, Waldrep sued, asking for work-men’s compensation benefits, but after years of legal battles,

ultimately the NCAA and TCU prevailed by using argument that Waldrep, like Ray Dennison before him, was a student-athlete and not an employee.

However, the legendary Alabama coach, Paul William “Bear” Bryant remained in contact with Waldrep and allowed Waldrep’s sons to attend Alabama on the Bear Bryant Scholar-ship. Furthermore, Waldrep’s advocacy for the disabled led to the drafting and passage of the Americans with Disability Act in 1990.

Maurice Clarett v. National Football League (2004) – Clarett had previously been a member of the Ohio State Buck-eye football team. He and Mike Williams, a wide receiver for the University of Southern California (USC) were challeng-ing the NFL’s requirement that players must wait three years from their high school graduation before entering the NFL draft. Judge Shira A. Scheindlin agreed this policy violated antitrust law. A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled against Clarett and decided the NFL would likely win its case. Two emergency appeals to the Supreme Court were denied. As both players hired agents, the NCAA ruled they were not eligible to return to college.

O’Bannon v. NCAA (2014) – Ed Bannon was the lead plaintiff in a case brought by him and thousands of other bas-ketball and football players regarding the use of their names, images, and likenesses in broadcasts and video games.

In September of 2013, Electronic Arts reached a $40 mil-lion settlement with O’Bannon and the other defendants. In June 2014, after a bench trial, the judge ruled that the NCAA had violated antitrust law and issued a permanent injunction against the NCAA. In 2015, the U.S. Court of Appeals for the Ninth Circuit affirmed the original ruling. In addition, the Court ruled the NCAA to provide the “cost of attendance” as opposed to the former “grant in aid.” This resulted in the pos-sibility of college athletes receiving up to $5,000 more per year as part of their scholarship package.




Player Freedom and Professional Sports

In the late 1960s, a vastly different landscape existed for high school and collegiate players with professional aspirations. College freshmen had no possibility of playing in the NBA. In fact, college freshmen like Lew Alcindor—better known to-day as Kareem Abdul-Jabbar—could not even play collegiately their first year. For the NBA, there was no one-and-done rule; it was a four-and-done rule. College players had to be four years removed from their high school graduation before enter-ing the NBA draft. This all changed with the case of a high school phenomenon named Spencer Haywood, from Silver City, Mississippi.

In 1968, at the age of nineteen, Haywood became the youngest player to make a U.S. Olympic basketball team as he led the Americans to a gold medal in the 1968 Mexico City Olympics. He led the NCAA in rebounding while scoring 32 points a game for the University of Detroit. He then signed a contract with the Denver Rockets, of the American Basketball Association (ABA), which did not have the same rule regard-ing draft eligibility as the NBA. After a brief stint with the Rockets, however, Haywood signed a contract with the Seattle Supersonics of the NBA. Eventually, despite a legal fight reach-ing to the Supreme Court, Haywood prevailed and entered the NBA despite being underaged.

In response to the legal decision, the NBA created a “hard-ship rule”, which required a prospect to demonstrate hardship to be eligible for the draft. This rule was abandoned in 1976, which ostensibly allowed any high school player to attempt to enter the NBA draft directly. However, for nearly twenty years, no player attempted this move until Kevin Garnett in 1995. Other players, including Kobe Bryant, Tracy McGrady and others, followed in the next few years. In 2001, Kwame

Brown became the first high school player to be the first overall pick in the NBA draft. When Brown’s career did not lead to the superstardom of others, the league began to reassess this policy with Gerald Green being the last player to go directly to the NBA from high school in 2005.

Since 2013, NBA teams have selected at least 13 “one-and-done players” in the annual draft. Ironically, Spencer Hay-wood believes the time he spent in junior college and the Uni-versity of Detroit prepared him for the NBA. He wrote a 2014 op-ed for the New York Daily News with the title ““NCAA players are not ready for NBA after just one season.” Despite his misgivings, it seems as though the NBA will return to the policy which Haywood ushered in over 50 years ago.

Haywood’s challenge is also notable because of the fact that it led to free agency in the NBA. Haywood empowered players to challenge league policies. As a result of his efforts, Haywood signed a six-year contract for $1.5 million. For 2018-2019, LeB-ron James’s annual salary was over $35 million. Unfortunately, while LeBron James is a household name, the legacy and im-pact of Spencer Haywood is largely forgotten.

A similar fate exists for the man who changed major league baseball, Curt Flood. As did many baseball players of his era, Flood signed a major league contract in 1956 at the age of 18 with the Cincinnati Reds. At that time, there was no baseball draft, so every player essentially functioned as a free agent. A few years into his contract, the Reds traded Flood to the St. Louis Cardinals. Flood became a top defensive player who earned seven straight Gold Gloves. In the winter of 1969, the Cardinals arranged to trade Flood to the Philadelphia Phillies.

However, Flood had no desire to play for the Phillies and tried to determine his options. In 1969, the Reserve Clause

Spencer Haywood Andy Messersmith Curt Flood Dave McNally




dictated the fate of not only baseball players, but of most pro-fessional athletes. Briefly, the Reserve Clause provided two op-tions for players: 1) the player could negotiate a new contract with his existing team or 2) the player could ask for release or a trade. The Phillies did not want to release or trade Flood. Running out of options,

Flood wrote a letter to Bowie Kuhn, the Commissioner of Baseball:

After twelve years in the major leagues, I do not feel I am a piece of property to be bought and sold ir-respective of my wishes. I believe that any system which produces that result violates my basic rights as a citizen and is inconsistent with the laws of the United States and of the several States.It is my desire to play baseball in 1970, and I am capable of playing. I have received a contract offer from the Philadelphia club, but I believe I have the right to consider offers from other clubs before mak-ing any decision. I, therefore, request that you make known to all Major League clubs my feelings in this matter, and advise them of my availability for the 1970 season.

Commissioner Kuhn denied Flood’s request. In response, Flood sued Kuhn. During the 1970 season, Flood did not play at all. The following year, Flood played for the Washington Senators in his final season of play. In 1972, Flood’s case reached the Supreme Court which ruled in favor of Major League Baseball. How-ever, in 1975, two other players, Andy

Messersmith and Dave McNally, were declared free agents by a federal judge whose ruling opened the way for modern day free agency in baseball. Nearly thirty years after his pioneer-ing effort, President Bill Clinton signed the Curt Flood Act in 1998 which codified the free agency Flood had desired.

In the spring of 2019, Bryce Harper and Mike Trout signed record-breaking contracts for their respective teams. Harper’s deal with the Philadelphia Phillies—the same team for which Flood refused to play—was for $330 million over thirteen years. Trout’s recent contract extension with the Anaheim An-gels brings his overall contract to $427 million over the next twelve years. Professional athletes have earned a tremendous amount of financial and individual freedom in the last fifty years as a result of the pioneering efforts of men like Spencer Haywood and Curt Flood.

Lesson Plan 1:Antitrust Labor Law and Sports Lesson Plan

Grades 9-12Introduction: Throughout the history of American professional sports, there have been numerous chal-

lenges to the labor and employment practices of major league sports, owners, and teams regarding free agency and player contracts.

Overview: In this activity, students will review the major legislation, rulings, and court challenges. Hav-ing completed this review, students will present their findings. The final step of the process will be for the class to determine if major professional sports leagues should retain their antitrust exemptions.

Students will spend one class session reviewing one of the main documents. A second session will consider whether or not professional sports should retain their Antitrust exemptions. The final part of the assignment will be for students to compose a short (1-2) page reflection on the main topic.

• Sherman Antitrust Act http://www.linfo.org/sherman_txt.html• Clayton Antitrust Act http://teachingamericanhistory.org/library/document/clayton-antitrust-act/• National Labor Relations Act https://www.nlrb.gov/how-we-work/national-labor-relations-act• National Labor Relations Board https://www.nlrb.gov/• Baseball Club of Baltimore, Inc. v. National League of Professional Baseball Clubs (1922) https://www.oyez.org/cases/1900-1940/259us200• Toolson v. New York Yankees, Inc (1953) https://supreme.justia.com/cases/federal/us/346/356/• Flood v. Kuhn (1972) https://www.oyez.org/cases/1971/71-32• The Seitz Decision (1975) https://sabr.org/research/arbitrator-seitz-sets-players-free• Mackey v. NFL (1976) http://www.lawschoolcasebriefs.net/2013/11/mackey-v-national-football-league-part.html• Wood v. National Basketball Association (1987) https://law.justia.com/cases/federal/district-courts/FSupp/602/525/1633990/• Curt Flood Act of 1998 https://www.congress.gov/105/plaws/publ297/PLAW-105publ297.pdf• Maurice Clarett v. National Football League (2004) http://www.lawschoolcasebriefs.net/2013/11/clarett-v-national-football-league-case.html




Lesson Plan 2: Paying College Athletes

KQED EducationRecommended for Grades 6-12

Should college athletes get paid or be allowed to receive sponsorship money?

Introduction: College and basketball programs rake in billions of dollars each year through market-ing, broadcast contracts, ticket sales and merchandising. The March Madness basketball tournament alone generates more than $1 billion each year in ad revenues, far more than the Super Bowl.

Schools and the National Collegiate Athletic Association both benefit tremendously from the windfall, as do coaches, many of whom are paid more than a million dollars each year.

But the athletes themselves? They don’t get a penny.

Officially considered “amateurs” by the NCAA, college athletes are contractually forbidden from re-ceiving any kind of monetary compensation. That means they can not only receive wages, but are also prohibited from accepting sponsorship deals or any other kind of publicity-related payouts. In fact, there have been multiple high-profile instances of well-known players punished for minor infractions of these rules, as in the case of the University of Georgia’s star running back Todd Gurley, who was suspended from play after accepting cash for autographed memorabilia.

The NCAA remains adamant that student athletes not receive any direct financial compensation for their participation. The group insists that the generous scholarships most top student athletes receive, covering their tuition and most living expenses at some of the best schools in the nation, is ample reward, as is the invaluable media exposure. Furthermore, the NCAA argues, the profits from football and bas-ketball are used to fund less lucrative sports like volleyball or golf.

But as profits from college sports continue to surge each year, diminishing the gap between elite college athletics and the pros, a growing number of student advocates argue that college athletes, many of whom practice upwards of 60 hours a week and often accumulate debt even with their scholarships, deserve a share of the profits. It’s their talent, after all, that brings in the billions. Advocates argue that the NCAA is exploiting college athletes by profiting from their skill and celebrity status and not giving them even a small slice of the pie. And, they argue, there is little protection for college athletes who get injured “on the job” and risk losing their scholarships, which are mostly allotted only on a yearly basis.

A recent court decision, though, may shake things up. Last August, a federal judge ruled that the NCAA’s s policy of barring payments to college athletes violated antitrust laws. Former UCLA basket-ball star Ed O’Bannon is the lead plaintiff in the class action suit. Now a car salesman in Las Vegas, O’Bannon discovered years after graduation that his avatar had been included in a video game without his consent, and he was receiving no royalties at all from the profit the game generated. The judge ruled that athletes in top men’s football and basketball programs can receive a small share of licensing revenues, which they can collect at the end of their college sports careers. The decision, though, is currently being appealed by the NCAA.




Overview: The classroom time will take approximately two or three class sessions.

Resources:

Students will watch and read the following resources prior to the main part of the lesson.

Money and March Madness Frontline (Season 29/Episode 10)https://www.pbs.org/video/frontline-money-and-march-madness-1/ Students will watch this twenty-minute episode on the lucrative nature of the NCAA Men’s Basket-

ball Tournament known as March Madness.

“N.C.A.A. Must Allow Colleges to Pay Athletes, Judge Rules”https://www.nytimes.com/2014/08/09/sports/federal-judge-rules-against-ncaa-in-obannon-case.

html

Students will read this New York Times article on the court case brought by former UCLA basketball player Ed O’Bannon and other former student-athletes.

“12 Primary Pros and Cons of Paying College Athletes”https://greengarageblog.org/12-primary-pros-and-cons-of-paying-college-athletes

A brief overview of reasons for and against the paying of college athletes.

Class Debate Activity: After the students have watched the short video and read the two articles, you will divide the class into three groups. Group 1 will serve as the judges of the debate. Group 2 will argue for the payment of college athletes. Group 3 will argue against the payment of college athletes. This debate should take one class period. After both sides have presented their case, the judges will deliberate, but they will not announce their decision until the next class session.

After the judges announce their decision, the rest of the class period should be devoted to a class discussion of the decision and the larger issue of payment of college athletes.

Lesson Plan 2 continued




TERRIFIC TECHNOLOGY FOR TEACHERS

Student-Athleteswww.ncaa.org/student-athletes

The official website of the NCAA contains a wealth of information regarding student athletes as well as information on future, current, and former student-athletes.

What It Means To Be A Student Athletewww.theodysseyonline.com/means-collegiate-athleteA personal account of being a student athlete by a female athlete at the University of Miami.

The Shame of College Sportshttps://www.theatlantic.com/magazine/archive/2011/10/the-shame-of-college-sports/308643/A link to a long article about the NCAA and college sports by award-winning journalist Taylor

Branch.

12 Primary Pros and Cons of Paying College Athleteshttps://greengarageblog.org/12-primary-pros-and-cons-of-paying-college-athletesA brief overview of reasons for and against the paying of college athletes.

Early Entry? One and Done? Thank Spencer Haywood for the Privilegehttps://www.nytimes.com/2016/06/30/sports/basketball/spencer-haywood-rule-nba-draft-under-

classmen.htmlAn article by New York Times sportswriter William C. Rhoden recounting Haywood’s story and

his struggle against the NBA that resulted in the Supreme Court allowing Haywood’s early entry into the NBA draft.

Curt Floodhttps://sabr.org/bioproj/person/23a120cbThe Society for American Baseball Research (SABR) profile of Curt Flood whose struggle opened

the way for free agency in Major League Baseball.

Student Athletewww.hbo.com/documentaries/student-athleteThe official site of the HBO documentary from executive producer LeBron James chronicles for-

mer players, a coach, and a former shoe company executive on the state of the NCAA and college sports.

Schooled: The Price of College Sportshttps://press.epix.com/programs/schooled-the-price-of-college-sports/Press site for the 2013 EPIX documentary on collegiate sports based on Taylor Branch’s Atlantic

article and his book The Cartel.

One & Done/Ben Simmonshttps://www.sho.com/titles/3437256/one-and-done-ben-simmonsA link to the 2016 Showtime documentary chronicling the year Ben Simmons, the top high school

basketball player, spent at LSU before becoming the number one pick in the NBA Draft.

Student Athletewww.hbo.com/documentaries/student-athleteThe official site of the HBO documentary from executive producer LeBron James chronicles for-

mer players, a coach, and a former shoe company executive on the state of the NCAA and college sports. The documentary will debut in April 2019.




April is Financial Literacy MonthLaw Wise is Pleased to Provide this Excellent Resource for Students and Teachers

to Promote Responsible Financial Resource Management — Today and Always

How to Adult: A Financial Checklist

“I need help,” I thought to myself as I stared blankly at my computer screen the week after my college graduation. I didn’t have a job, a permanent place to live, or any idea on how to conduct myself outside of the safe university bubble. I was crushed under the weight of a task list I couldn’t see and grow-ing more anxious by the hour. “If only there were a syllabus for my life,” I sighed, instinctively reopening my Facebook and Netflix tabs.

As a recent graduate, it can be overwhelming to look true adulthood in the face. You may feel the distinct impression that you should be acting to establish your financial footing, but have no idea how to start that process. This “How to Adult” article will provide a basic checklist to assist you in developing a stable foundation for your financial future. This checklist is not exhaustive but is meant to provide a jumping off point for young adults and recent college graduates.

The Financial ChecklistPull your Credit Score and Reports. Establishing a strong

credit score is among your highest financial priorities as a young adult. A higher credit score will make it simpler to be approved for major purchases and help you secure a lower in-terest rate on loans.

Credit reports from the three major agencies, Experian, TransUnion, and Equifax, reveal the data used to develop your credit score. They show how long you have been establishing credit and whether your payments have been on time, among other things. You are entitled to one free credit report per year from each agency. To pull your credit report, visit www.annu-alcreditreport.com and follow the instructions. They will ask for your social security number and use a series of financial questions to verify your identity. Make sure to visit only this website, and do it from a secure, personal internet connection. Your credit score is not found on your credit report.

Your credit score is a specific number, generally between 300 and 850, that indicates your riskiness as a potential bor-

Check out www.caremokan.com for more aboutCredit Abuse Resistance Education!




rower. This score is available on certain credit card statements or through many external websites. Discover is currently pro-viding credit scorecards free to customers and non-customers alike through their website (https://www.discover.com/free-credit-score/ ). They use Experian’s data, and so credit scores from the other agencies may vary slightly.

Save each of your credit reports and scores to consult throughout the year. Lenders and potential landlords can pull your credit score, and it is always good to know what they might find.

Set a Budget. “Budget” is a word we hear often while grow-ing up, but very few people actually have one. I’ll be the first to admit- it’s slightly harder than it sounds. In college, I never spent my whole paychecks, and so I didn’t worry about bud-geting. That was wrong. Budgeting is not about restricting how you spend money, it’s about understanding where your money goes.

If you sit down to make a budget today, never having had one before, you may feel lost. How am I supposed to guess what I will spend on food? Every month is different! The first step is to track your spending habits. There are great apps and websites that allow you to track your transactions. I personally use the free “Spending Tracker” app for iPhone. You enter the money spent, pick a category, write any notes you want about the purchase, and then the app creates a bar or pie chart. It also keeps a running tally of whether you are in the red or green (do you spend more or less than you’re bringing in) and separates purchases into categories.

After a month (or two) of tracking your expenses, it’s time to sit down to budget. Websites like everydollar.com allow you to create a budget using categories you name yourself. Remem-ber to be honest. In the beginning, it’s easy to be too ambi-tious- I’ll save half my income, only spend $10 a week on food, never buy clothes. Underestimating categories will leave you feeling limited and disappointed at the end of each month. If you have categories that you irregularly spend on (birthday presents, movie tickets, travel), feel free to lump these into a larger “Miscellaneous” category.

Of course, your budget may reveal things you do need to change- that’s okay! At the end of each month, you should sit down to see what you overestimated and what you underesti-mated. Feel free to change amounts, or even category names, to develop a better fit. Many experts use the 50/30/20 rule as a starting point for new budgeters.

• 50% Fixed Costs- Rent, Cell Phone, Utilities, Car, Gro-ceries, Minimum Debt Payments

• 30% Discretionary- Clothing, Donations, Restaurants, Travel

• 20% Savings- Emergency Fund, Extra Debt Payments, Retirement

The rule is a great place to start, or a fantastic goal to move towards. No matter how your budget manifests, make sure you have a plan for saving money and paying off debt.

Open a Credit Card. There are a million different credit cards on the market to-

day, and it can be hard to know which option is best for you. The only wrong choice, is no choice. In today’s financial mar-ket, it is a near imperative to have a credit card. It’s the simplest way to develop a healthy credit score, and it allows you flex-ibility while making purchases. So where to start?

If you have a healthy relationship with your bank, that’s a great place to begin. Many banks (even local ones) offer credit cards and may be more lenient with certain requirements for an established client. Beyond this, there are three major factors for young adults to consider when picking a first credit card.

• APR. This indicates the interest you’ll have to pay if any of your balance carries over into the next payment cycle. The higher the interest rate, the more you must pay. APRs for first time cardholders generally range from 13% to 24%. However, if you pay off your entire balance each month (as you should!) you do not pay any interest to use your card.

• Annual Fee. Many cards with great rewards (airlines, hotels, retailers) have an annual fee for use. You should only select one of these cards if you know that the rewards you will collect will exceed that fee. If not, there are plenty of reason-able cards that have no annual fee. Note: Very few landlords accept housing payments from credit cards, so make sure to exclude your housing expenses when estimating how much money you’ll put on your new card.




• Rewards. Rewards are what really set each card apart. When researching cards, try using keywords to find the cards with the best deals for the things you enjoy most. Common reward focuses include travel, cashback, hotels, and card credit (they’ll knock money off your bill).

There are, of course, other things to consider. Some cards al-low you one or two late payments before bumping your APR up, others let you set your payment due date, and still others allow you to appeal for a credit limit increase after a set period of con-sistent payments. The takeaway here is to research thoroughly.

Sign Up for a Healthcare and Dental Plan. Now we’re getting into the real adult problems. Healthcare

and dental plans are often provided through an employer. If that is the case for you, your employer will take money from each paycheck to fund these plans. You may be asked to choose between a few options at your date of hire, so what should you look for?

• Monthly Pre-mium. This is how much you pay for your health-care plan, whether you use it or not. A higher premium tends to indicate more coverage and lower deductibles and copays, while a lower premium may indicate less coverage.

• Deductibles and Copays. This is what you

will pay when you use your healthcare plan. The deductible is the amount you must pay out of pocket before insurance kicks in to assist with the costs. Many plans do help cover pre-ventative care or doctor visits before you reach the deductible, though you may still have a copay. A copay is a fixed amount you pay for certain services, for example, you might pay $30 at every doctor’s appointment. There are also other fees you may need to pay, like coinsurance (you cover a percent of your medi-cal costs).

• In Network/Out of Network Coverage (HMO, PPO, EPO, POS). Most healthcare plans prefer you use a limited number of doctors in their “network.” If you go to a doctor or specialist outside of that network, you may need a referral and it will likely cost more. These plans are often separated using a series of acronyms.

o Health Maintenance Organization (HMO). You must stay in network unless it is an emergency, and you will require a referral to meet with a specialist.

o Preferred Provider Organization (PPO). In-Network care will be cheaper, but you are free to visit providers out of your network without a referral.

o Exclusive Provider Organization (EPO). You must stay in-network unless it is an emergency, but you can see a specialist without a referral.

o Point of Service (POS). You’ll need a referral to go out of network, but it is an option. You’ll also need a refer-ral to visit a specialist.

• Health Savings Accounts (HSAs). Many healthcare plans come with the option to open an HSA account. These accounts allow you to set aside pretax dollars to be used on medical, dental, and vision expenses. In effect, this is a dis-count on your taxes at the end of the year. These dollars are de-ducted from your overall gross income which then lowers your tax burden (similar to a 401K). If you’re especially lucky- your employer might even contribute some money to this account on your behalf. To use your HSA dollars, you may be given a debit card or asked to submit receipts for reimbursement. The best part of an HSA account is that the funds rollover year to year and you can take them with you when you leave a job. So why wouldn’t you pick a healthcare plan with an HSA? These accounts are generally only available with a high deductible plan. Those plans generally have lower premiums but push a higher cost onto you as the consumer. If you are young and healthy- you might not be planning to have much interaction with medical professionals beyond check-ups. In that case, an HSA that lowers your monthly costs and helps you save for the occasional copay or prescription likely makes sense. If you have a recurring medical concern- you may elect for higher monthly costs but lower costs per visit and greater coverage.

• Flexible Spending Account (FSAs). Like HSAs, Flex-ible Spending accounts take pretax contributions and allow you to spend on medical expenses. These are generally an op-tion on all plans. The largest difference is that these funds do not rollover year to year and you cannot take them with you. Any remaining money in these accounts goes back to your em-ployer. This account generally only makes sense if you have predictable, recurring medical expenses and contribute only that amount into the account.

• Other. If you have specific health conditions, require regular prescriptions, or travel often you may want to evaluate if the plan will cover your care. The best way to find out is to call the provider.

What if you don’t have a job that offers health care and den-tal? First, if your parents have insurance, you may discuss stay-ing on their plan until you are 26. However, this isn’t a fit or option for everyone. Your next best option is to visit health-care.gov to view plans and see if you can enroll. There may be limited enrollment periods or other restrictions, but it’s a great place to start. Follow the instructions to select your state and compare plans from the site. A word to the wise, this website is a bit unwieldy and frustrating for a first-time applicant. Make sure you sit down with a lot of patience and access to google.




There are several private dental plans available through com-panies like Delta Dental Insurance, Humana, and Ehealth- again, your best option is to research, ask questions, and com-pare.

Contribute to Retirement.

Another scary adult financial decision- retirement. As with health and dental insurance, your retirement plan is often set up by your employer. They contribute, you contribute, and ev-eryone is happy. The only decision you generally have in this

one, is how much to put in. It’s best to select the maxi-mum matched contribution, which generally ranges from 3-6% of your paycheck. As a young adult, you may want to contribute even more while you have fewer expenses (You’ll thank yourself later, and besides, you’re still mak-ing more money than in col-lege!). You will have the op-

tion to raise or lower your contribution each calendar year. Your contributions are deposited into a 401K that will send you regular reports to let you know how your invested mon-ey is doing. As a young participant, your funds will likely be placed in high risk-high reward options. You should also have access to a company website that allows you to monitor your account and make changes to investments.

If you don’t have a plan through an employer, but still want to save for retirement, you have a few options. You can open an Individual Retirement Arrangement (IRA) with your bank or other financial institution. The money you put into this ac-count is tax deductible if you (or a spouse) are not covered by a traditional employer plan. There are also Roth IRAs. You don’t get the tax deductions, but you won’t have to pay taxes on the money when you take it out at retirement (unlike traditional IRAs). These accounts are not meant to be your only means of savings, and eventually joining an employee 401k is still the ideal in most cases. That being said, these are great places to start. If those seem like too large of a commitment, you may choose to start small. Purchase a few CDs (certificates of deposits) or try a micro investing app like Acorns or Stash to get comfortable with setting money aside. As with any major financial decision, it’s best to consult multiple sources and pro-fessionals to make the best decision for yourself.

It’s easy to feel alone when making these financial decisions. I felt like any wrong move, and I’d be destroying my chances at financial prosperity for life. It wasn’t, and isn’t, true. There are people along the way willing to help when you reach out. If you do make a mistake, you can nearly always fix it at the next calendar year or by contacting your employer or provider.

The right step, is forward.

Bonus Items:

• Open a Checking and Savings Account. Everyone should have a bank account. Pick a bank you trust, be wary of fees, have round the clock access with apps and web portals, and shoot for the highest return possible.

• Start Saving for a Down Payment on a House. This may not be relevant in every city, but eventual home owner-ship is a goal for many people. Look at the average price of first-time homes in your area and try to save 10-20% of that price.

• Donate 10%. It sounds counter intuitive, but many studies indicate that individuals that donate ten percent of their income are happier than if they were to make more mon-ey. Whether that’s true for you personally or not, donating is an important part of giving back to your community.

• Create your My Social Security Account. While you may not need social security for quite a while, it’s good to sign up and claim your social security number. You can do this by visiting ssa.gov/myaccount. Remember, it’s extremely impor-tant to visit the correct website, and only on a server you trust.

• Know your Student Loan Debt. If you have student loan debt, you probably participated in an exit interview prior to graduation. You should know when you are expected to start paying them back, how much you’ll be expected to pay each month, the interest rate, and what your total balance is. To find this information, visit nslds.ed.gov.

Further ResourcesNerdwallet.com– Offers great comparisons on credit cards

and bank accounts, as well as providing various articles related to the financial market.

MoneyUnder30.com– A finance website geared towards young adults. It features articles answering general questions as well as providing in-depth analysis of various credit cards and accounts.

Anna Zimmerman is an Executive Assistant at Gramercy Proper-ty Trust in New York City. While growing up and attending college in Kansas, she developed a passion for financial literacy within the young adult and female populations. Anna has served as a board member, writer and guest speaker for a number of nonprofit and pro-fessional organizations around the country. This Fall, she will begin a Social Impact MBA program at Brandeis University with hopes of working in the nonprofit sector.

About the Author




About the Law Wise Editor:

Nicolas Shump teaches courses in Creative Writing, Film, and Advanced Placement (AP) courses in Comparative Governmentand Politics, European History, Psychology, and U.S. Government and Politics for the Hybrid Learning Consortium (HLC) at The Barstow School in Kansas City, MO.

He also teaches Discourse 100 at the University of Missouri-Kansas City (UMKC) where he is an MFA Student in the Creative Nonfiction Program. He is a columnist for the Topeka Capital-Journal and a Talk About Literature in Kansas (TALK) discussion leader for Humanities Kansas.

He can be reached at [email protected]

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