Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

The NCAA's Attempt to Defend Amateurism

Author: Scarinci Hollenbeck, LLC

Date: March 22, 2016

Key Contacts

Back

The NCAA’s Attempt to Defend Amateurism

Amateurism

In 2015, a court ruled that the National Collegiate Athletic Association is violating the Sherman Antitrust Act by failing to provide student-athletes with compensation when it uses their images to sell products, and the organization is making an attempt to maintain its concept of amateurism.

Court rules in favor of the plaintiff

Ed O’Bannon, a former UCLA basketball player, filed a lawsuit in 2009 alleging that the NCAA, as well as several other entities such as video game company Electronic Arts, was violating federal antitrust laws by neglecting to compensate athletes whose images were used to sell video games, jerseys and more. While many arguments have been raised about compensating student athletes for their performances on courts and fields, this lawsuit addresses something different. Essentially, it states that these athletes should receive outside income when their images are used to sell goods.

The 9th Circuit court agreed with the idea, somewhat. The most recent ruling on the case expressed concern that cash compensation for athletes could turn the NCAA into a minor league system. However, it did agree with the plaintiff that some sort of compensation should be awarded – in this case cost of attendance. The NCAA has received its fair share of criticism for its refusal to compensate athletes in the name of amateurism.

The federal law the defendants were accused of violating has been around since 1890, and was developed in an attempt to promote competitive trade, according to the Federal Trade Commission. The act is one of three central antitrust regulations, along with the Federal Trade Commission Act and the Clayton Act. 

College athletes await the NCAA’s appeal

The NCAA, meanwhile, believes that this sort of compensation violates the tenets of amateurism upon which the organization’s student athlete system is based. The NCAA filed for an extension to appeal the 9th Circuit ruling that the organization’s failure to compensate student athletes constitutes a violation of federal antitrust laws. The proposed appeal is an attempt to save the concept of amateurism as the NCAA maintains it. 

“The NCAA has requested a 30-day extension to file a petition for review of the O’Bannon case with the United States Supreme Court,” Donald Remy, the NCAA’s chief legal officer, explained in a statement. “During this time, we will continue to assess our legal options, including preparing for the possibility that plaintiffs will seek further review. We continue to maintain that the NCAA operates well within antitrust laws, but we also agree with the 9th U.S. Circuit Court of Appeals’ recognition that benefits to student-athletes should be tethered to higher education.”

Now the future of amateurism depends on what sort of argument the NCAA can compose for its appeal. The organization will attempt to defend its concept of amateurism and explain that it does not violate federal antitrust laws.

If you have questions about student athlete compensation or the NCAA, speak with an experienced sports law attorney for more information. 

For more blog posts about Amateurism in the NCAA, head over to:

  • NCAA Falling Foul of Antitrust Laws

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Are Stay Interviews the Key to Retaining Top Talent? post image

Are Stay Interviews the Key to Retaining Top Talent?

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]

Author: Angela A. Turiano

Link to post with title - "Are Stay Interviews the Key to Retaining Top Talent?"
Why Secured Transactions Are Important post image

Why Secured Transactions Are Important

Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]

Author: Dan Brecher

Link to post with title - "Why Secured Transactions Are Important"
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications post image

Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications

Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]

Author: Dan Brecher

Link to post with title - "Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications"
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors post image

Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors

The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]

Author: Dan Brecher

Link to post with title - "Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors"
Corporate Consolidation and Antitrust Issues in Mergers post image

Corporate Consolidation and Antitrust Issues in Mergers

Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]

Author: Dan Brecher

Link to post with title - "Corporate Consolidation and Antitrust Issues in Mergers"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!