Author Topic: Supreme Court rules against NCAA in dispute over student-athlete compensation  (Read 487 times)

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Supreme Court rules against NCAA in dispute over student-athlete compensation
By John Kruzel - 06/21/21 10:36 AM EDT

The Supreme Court on Monday ruled unanimously against the NCAA in a dispute over limits placed on education-related compensation that student-athletes can receive.

The decision, written by Justice Neil Gorsuch, clears the way for colleges to provide more school-related perks to students like computers, musical instruments and internships, and some legal experts say the case could be a prelude to challenges aimed more broadly at compensation restrictions on college athletes.

Justice Brett Kavanaugh agreed with the judgment but wrote a separate concurring opinion that contained a blistering critique of the NCAA’s business model, which generates considerable revenue, particularly from Division I football and basketball.

“Nowhere else in America can businesses get away with agreeing not to pay their workers a fair market rate on the theory that their product is defined by not paying their workers a fair market rate,” Kavanaugh wrote. "And under ordinary principles of antitrust law, it is not evident why college sports should be any different. The NCAA is not above the law.”

The dispute arose after a group of college athletes sued the NCAA, alleging its rules on player compensation ran afoul of antitrust laws that bar certain restraints on the competition for talent and labor.

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https://thehill.com/regulation/court-battles/559383-supreme-court-rules-against-ncaa-in-dispute-over-student-athlete
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Supreme Court rules against NCAA in dispute over student-athlete compensation
By John Kruzel - 06/21/21 10:36 AM EDT

The Supreme Court on Monday ruled unanimously against the NCAA in a dispute over limits placed on education-related compensation that student-athletes can receive.

The decision, written by Justice Neil Gorsuch, clears the way for colleges to provide more school-related perks to students like computers, musical instruments and internships, and some legal experts say the case could be a prelude to challenges aimed more broadly at compensation restrictions on college athletes.

Justice Brett Kavanaugh agreed with the judgment but wrote a separate concurring opinion that contained a blistering critique of the NCAA’s business model, which generates considerable revenue, particularly from Division I football and basketball.

“Nowhere else in America can businesses get away with agreeing not to pay their workers a fair market rate on the theory that their product is defined by not paying their workers a fair market rate,” Kavanaugh wrote. "And under ordinary principles of antitrust law, it is not evident why college sports should be any different. The NCAA is not above the law.”

The dispute arose after a group of college athletes sued the NCAA, alleging its rules on player compensation ran afoul of antitrust laws that bar certain restraints on the competition for talent and labor.

more
https://thehill.com/regulation/court-battles/559383-supreme-court-rules-against-ncaa-in-dispute-over-student-athlete
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NCAA athletes get unanimous win on educational perks as Kavanaugh calls out limits on direct payments

Amy Howe.com 6/21/2021

https://amylhowe.com/2021/06/21/ncaa-athletes-get-unanimous-win-on-educational-perks-as-kavanaugh-calls-out-limits-on-direct-payments/

Quote
The Supreme Court on Monday reshaped the relationship between universities and the athletes who play college sports. In an opinion by Justice Neil Gorsuch, the justices unanimously ruled that the National Collegiate Athletic Association cannot prohibit its member schools from providing athletes with certain forms of education-related benefits, such as paid post-graduate internships, scholarships for graduate school, or free laptops or musical instruments.

Although the decision did not involve cash payments to college athletes, it may pave the way for a future Supreme Court ruling on whether college athletes should be able to earn money for playing sports – either directly from their universities or through lucrative endorsement deals. In a concurring opinion, Justice Brett Kavanaugh wrote that the NCAA’s policies banning those types of compensation “raise serious questions under the antitrust laws.”

Monday’s decision in NCAA v. Alston ended a dispute that began seven years ago as a class-action lawsuit filed against the NCAA and the major collegiate athletic conferences by athletes who played Division I football and basketball. Under the NCAA’s rules, universities generally are allowed to provide athletes with scholarships covering tuition while they are NCAA-eligible, and they are allowed to cover basic expenses like textbooks and room and board. But most other forms of compensation are banned.