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News. News. News. January 19th Edition

19 Jan 2015

US Supreme Court to Settle Gay Marriage Bans at State Level

The United States Supreme Court announced on Friday that it would hear a challenge of the Sixth Circuit’s recent decision that upheld gay marriage bans in Ohio, Michigan, Tennessee, and Kentucky. In 2013, the Court decided that federal laws that defined marriage as between a man and a woman were unconstitutional, but it did not settle the whether or not states can define marriage as between a man and a woman. The Court dodged the issue by denying standing in a California case (Hollingsworth v. Perry).

Unless a surprise crops up, I expect the Court to reverse the Sixth Circuit’s decision and thereby render any state ban on homosexual marriage as a violation of the Constitution’s Fourteenth Amendment. As usual, Justice Kennedy will be the swing vote in what will likely be a 5-4 decision.

Reduction in Civil Forfeiture

Attorney General Eric Holder is finally taking steps to at least undermine civil forfeiture. The process, which is rooted in the war against drugs, allows police forces to seize cash and property from criminal suspects. Slate has the story.

The downside to civil forfeiture, like most things, is that it can be abused. There are hundreds of examples of people very marginally suspected of crime would have assets seized and either lose them permanently or would have to go through an expensive process to retrieve them. Too many law enforcement departments rely on such funds in a way that creates a twisted incentive to seize assets. While Holder’s federal withdrawal from the process may slow down civil forfeiture, don’t expect it to end, for only legislation will do that.

NCAA Votes to Allow Cost-of-Attendance Scholarships

ESPN reports that the NCAA has voted to allow member institutions to pay student-athletes cost-of-attendance scholarships that would cover expenses beyond tuition, room and board, etc… This outcome is just on one hand, for institutions make millions of dollars on their athletes, some of whom struggle for funds to go on a date or buy a pizza. Giving young people such funds seems more than reasonable and I don’t begrudge them.

At the same time, such students already get significant benefits from their scholarships. Also, this will further remove athletes from the students they rub shoulders with on a daily basis. And, of course, it will further divide institutions that can afford to do such things from those that cannot. Most athletic departments do not generate enough revenue to cover their own expenses. In fact, according to this story, about 10% of Division 1 schools (23 out of 228) do so. Adding several thousand dollars to each scholarship will only drag more athletic departments into a deficit, likely pulling more and more funds from the universities that too often subsidize their exploits.

This is driven, overwhelmingly, by the largest revenue generating sports–football and, to a lesser extent, basketball. Though it will likely never happen, the entire system would be better off if the N.F.L. and the N.B.A., like Major League Baseball, had minor leagues so that young men seeking only a professional life in sports would have an outlet for them that does not warp or compromise universities and their academic mission. Of course, why would they go through that expense when universities throughout America are willing to do all of the heavy lifting for them?

American Sniper Shatters Box Office Records

Clint Eastwood’s American Sniper, buoyed by multiple Oscar nominations, will likely make around $105 million over the four-day holiday weekend. This is the largest opening ever for the month of January, and will likely be the largest opening ever for an R rated film. Starring Bradley Cooper and Sienna Miller, Sniper is also earning an A+ CinemaScore, which means that viewers polled upon leaving the theater gave the film the highest rating, and this positive perception cuts across demographic groups–male/female, young/old, etc.. This likely means extremely positive word-of-mouth, which generally translates into sustained revenue. In the business, they say this film likely has “legs” and is not expected to fizzle after a strong first weekend. On its face, at least financially, this film looks like Passion of the Christ, which made over $370 million total. We will see if this holds up, but American Sniper is shaping up to be an extraordinarily profitable film. Now, I just need to go see it.