You could have stopped right there, because you just made my argument for me. ESPN, ABC, Athletic departments all receive benefits from broadcasting a entertainment sporting even on television. If we ignore all the tv shows, ads, and everything else and just focus the the game being broadcast itself, my point stands easily. The TV networks have to sign contracts with the schools to broadcast the games. Have to. If they just tried taking some cameras in, and sending the feed to ESPN, they would get sued immediately. Why? They aren't broadcasting a game as a news service, they're broadcasting it as entertainment for the purpose of selling a product, advertising space. Billions and billions of dollars in ad space.
The schools have licensing agreements with conferences and the NCAA that allows this. EA also has an agreement with the NCAA and schools. They all receive a cut of the revenues. Just like the do from TV money. The problem is, TV is considered a sacred cow, and many people don't want it to consider it as the same thing (which it absolutely is) and so they come up with bs reasoning why it isn't.
I've also seen the "a person has a right to their celebrity" as an argument for why EA is wrong. Ok, then the kids also have a right to their "celebrity" being used to sell ads for ESPN and the TV networks.
The fact of the matter is, the insane gobs of cash that TV makes is far worse than some video game that uses generic models. Is EA dancing around a gray area, yes they are. But the TV networks are far worse in their blatant profiteering from student athletes. Any person who denies this is burying their head in the sand, and doesn't want their precious TV broadcasts of games affected.
I see the point you are trying to make, but if you had considered what I put further into my post, you would have seen why I think you're wrong.
What I'm saying is that broadcasting games on television, in a generic definition, is broadcasting the news. Two teams play and whichever one wins and loses is the subject of the 'news'.
Furthermore, you're trying to apply a tag to broadcast television like the NCAA and specific television affiliates only take advantage of NCAA athletes. What about Scripps National Spelling Bee contestants? They're on television and they don't see any of the money Scripps or the convention center they hold it in are making from the television rights. Are they being taken advantage of?
Are little league world series participants being taken advantage of?
My point is there are SO many examples of people being on television (with television contracts being involved) and those people aren't making squat. This is the ways news has been for decades and it is an accepted part of the way things work.
This video game argument, although similar in ways, is still in a completely different ball park.