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Appeals Court Rules NCAA Violated Antitrust Laws

by Rustin Dodd The Kansas City Star

September 2015

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Rustin Dodd The Kansas City Star

In the ongoing and contentious fight over compensation for college athletes, the NCAA scored a

narrow split decision in federal appeals court Wednesday.

The Ninth U.S. Circuit Court of Appeals ruled NCAA schools must compensate student-athletes only

for the full cost of attendance, striking down a proposal that would have paid athletes an additional

$5,000 per year in deferred compensation for use of their likenesses. The ruling stated that cost of

attendance was sufficient.

The decision upheld a federal judge's ruling from last year, which said the NCAA's use of college

athletes' names, images and likenesses violated antitrust laws. But the latest outcome in what has

become known as the O'Bannon Case can be seen as a victory for the country's biggest athletic

conferences and those that seek to protect the collegiate athletic model and limit compensation for

athletes.

"Today, we reaffirm that NCAA regulations are subject to antitrust scrutiny and must be tested in the

crucible of the Rule of Reason," a three-person appeals panel wrote.

The panel continued: "In this case, the NCAA's rules have been more restrictive than necessary to

maintain its tradition of amateurism in support of the college sports market. The Rule of Reason

requires that the NCAA permit its schools to provide up to the cost of attendance to their student-

athletes. It does not require more."

Immediately following the ruling, NCAA president Mark Emmert said in a release: "We have not

completely reviewed the court's 78-page decision, but we agree with the court that the injunction

'allowing students to be paid cash compensation of up to $5,000 per year was erroneous.' Since

Aug. 1, the NCAA has allowed member schools to provide up to full cost of attendance; however, we

disagree that it should be mandated by the courts."

The decision comes after years of legal wrangling in the case, which is formally known as "O'Bannon

v. NCAA." A lawsuit over antitrust laws, the O'Bannon case has come to symbolize the greater fight

over increased compensation for student-athletes.

The lawsuit, which began after former UCLA basketball star Ed O'Bannon saw his own likeness

used in an NCAA basketball video game, has sparked a wave of change in NCAA

athletics, including greater autonomy for members of the so-called "power five" conferences. Earlier

this year, that autonomy led schools from the power five conferences to offer full cost of attendance

to student athletes, which essentially amounts to enhanced scholarship in the neighborhood of

$2,000 to $5,000 per year, depending on the school.

Those payments will continue. But while the NCAA has adopted "cost of attendance" scholarships

for some schools, college sports leaders have dug in their heels and fought for every inch in the

battle over student-athlete compensation. Among those voices resistant to change: Big 12

commissioner Bob Bowlsby, who has said that the loss of the collegiate model could cause

irreparable harm. Others have sounded similar warnings.

"I think you'll see men's Olympic sports go away as a result of the new funding challenges that are

coming down the pipe," Bowlsby said last year. "I think there may be tension among and between

sports on campus and institutions that have different resources. It's really unknown what the

outcomes will be."

From that viewpoint, Wednesday's ruling could save college athletic departments millions over the

coming decade. But the legal fight over college athlete compensation is just beginning.

APPEAL from 1B

October 1, 2015

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