Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: March 22, 2016
The Firm
201-896-4100 info@sh-law.com
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.
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.
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:
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall

What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki

Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton

Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki

For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena

Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!