Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: December 29, 2014
The Firm
201-896-4100 info@sh-law.comIf you are a D-I student-athlete or hope to be one soon, this ruling may have an effect on the offers that you receive from your institution. I’ll be exploring this ruling, the anti-trust laws behind it and how it will affect student-athletes.
The decision applied specifically to NCAA rules that disallow student-athletes from receiving revenues from the sale of licenses for so-called “NIL’s”, or Name, Images and Likenesses. Currently, schools often sell these licenses to third parties and keep the profits under the agreement between them and the student. Students are barred from selling these licenses independently or accepting anything of value under NCAA amateurism rules.
Wilkens ruled against O’Bannon on several counts. She held that the plaintiffs failed to show how the NCAA policy forbids the sharing of these revenues with student-athletes actually being caused harm, that NCAA restraints are preventing competition between students to sell group licenses or that the restraints have an anti-competitive effect on the buyers’ market for group licenses.
Where Wilkens did rule in O’Bannon’s favor was in regards to the college education market. She found that schools with elite athletics programs are the only supplier of college education in this specific market – that is, high level student-athletes – and that they act in concert with the NCAA to fix the price of their product. In this case, the price of their product is not the nominal cost of tuition, but rather the recruit’s athletic services and the use of his or her name, image and likeness. In the absence of this restraint, Wilkens opined that schools would compete against each other for the best recruits by using more attractive scholarships and licensing stipends.
In simple terms, Wilkens ruled that colleges and the NCAA are working together to keep the “cost” of a student-athlete’s services and licensing rights down. As of now, the cost is only the price of a college education – the maximum allowed under NCAA amateurism rules.
Under the Sherman Act, the first anti-trust law established in the United States, “every contract, combination or conspiracy in restraint of trade” is forbidden, though this has long been interpreted to mean only unreasonable restraints of trade. Those practices that are almost always considered to be unlawful under the Sherman Act include things like bid rigging, dividing markets and fixing prices.
By agreeing together not to offer licensing rights or payment in excess of the cost of attendance, colleges and the NCAA are effectively fixing the price of the student’s athletic services, according to Wilkens’ ruling. Insofar as this constitutes a violation of the Sherman Act, it is therefore unlawful.
Students in D-1 athletics programs shouldn’t start selling licensing rights yet. The results of Wilkens’ ruling seem likely to be fairly limited in scope.
First, Wilkens ruled that any collusion not to pay for NILs was enjoined, but that she might accept a plan for deferred payments for costs above the full cost of attendance. Further, she said that she would strike down a cap on deferred payments below $5,000, implicitly opening the door to a $5,000 cap.
Perhaps more importantly, Wilkens is not mandating $5,000 worth of compensation, nor even the full cost of attendance. The only thing that this ruling does is to ban schools from agreeing together not to increase their compensation.
The NCAA has already appealed the ruling, but it may well hold. If so, expect to see offers of deferred compensation for licensing rights within a few years.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
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
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
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!