Volunteer coaches, NCAA near settlement over compensation

SACRAMENTO, Calif. (CN) — A nearly $50 million settlement for volunteer college baseball coaches appears headed toward approval after a federal judge on Monday signaled that he’d likely agree to it.

The agreement, reached after over two years of litigation, would provide some 1,000 assistant college baseball coaches around $36,000 for each year they served in a volunteer role. Some coaches who served multiple years at larger schools are expected to receive six-figure sums.

It’s the culmination of a suit filed in the Eastern District of California by Taylor Smart and Michael Hacker against the National Collegiate Athletic Association. The men served as volunteer coaches for association baseball teams, but couldn’t receive money or other benefits despite working over 40 hours a week.

The $49.25 million in the proposed settlement is over 90% of the damages the men and class members said they suffered. They called it a “uniquely strong result” in their motion for preliminary approval of the settlement.

“The actual payouts will be school-specific using the salary data provided by schools, and many class members who coached multiple years at larger schools will receive six figures,” the men wrote. “Simply put, the settlement results in an outstanding and impressive recovery for the class.”

The suit, while similar to litigation filed by current and former athletes against the NCAA, is separate.

Presiding over the Smart and Hacker suit, U.S. District Judge William Shubb on Monday asked about the other litigation. The plaintiffs in that suit also argue that the NCAA and member schools fixed compensation for a category of coaches at zero.

Attorney Garrett Broshuis, representing Smart and Hacker, said his clients’ case was filed months before the other suit. Court records show that the other suit focused on volunteer coaches in NCAA Division I sports programs other than baseball. It excluded baseball coaches, referencing the Smart and Hacker case as the reason.

Taylor and Smart’s case never consolidated with its counterpart, and then they reached a tentative settlement, Broshuis said.

NCAA attorney Carolyn Luedtke declined to address the court during Monday’s proceedings.

Indicating support for the settlement, Shubb questioned the factors an expert used to determine the payout each class member would receive. Broshuis noted that the expert used 10 factors, like geographic region and what peer schools were doing, when determining monetary damages.

“Which I think is relevant here,” Broshuis added.

The expert, using information gained from subpoenas, determined that “all members of the proposed class suffered injuries,” the men wrote in their motion.

The deal calls for the $49.25 million to go toward a common settlement fund. Class members will receive money from that fund once the judge approves attorneys’ fees, expenses and incentive awards.

Some $32.8 million will go to class members. About $14.8 million is for the men’s attorneys, with up to $1.5 million for costs and expenses. Around $65,000 will pay for the settlement administrator and an economist. Taylor and Smart will receive an incentive award of $7,500 each, leaving a $100,000 contingency fund.

The men acknowledged that without a settlement, they’d still have three barriers to overcome: class certification, summary judgment and trial.

While claiming to be confident they could have surpassed these barriers, the men wrote that if the NCAA prevailed at any of those stages, the class would have received nothing. Now, they stand near recovering almost all the compensation they’re owed.

The men have argued that Shubb should consider that the NCAA’s volunteer coach rule was discarded only after they filed suit seeking monetary and injunctive relief. Since 1992, when the rule was implemented, hundreds of volunteer coaches have faced harm.

“The court is included to approve the settlement,” Shubb said, signaling the hearing’s end. “It’ll get you an order.”