August 26, 2014

Federal Judge Rules Against NCAA in Antitrust Case

In a 99-page decision, a federal judge ruled that the NCAA violated federal antitrust law by unreasonably restricting certain college football and basketball players from being compensated for using their images and likenesses. The judge enjoined the NCAA from enforcing rules that prohibit Football Bowl Subdivision and Division I basketball players from receiving a limited share of the revenues generated from using these images and likenesses. However, the injunction allows the NCAA to cap the revenue an athlete can earn at $5,000 per year, to be placed in a trust until the athlete leaves school or exhausts playing eligibility.

The decision came after a three-week trial in federal district court in Oakland. The judge, after finding that markets existed for the athletes’ images and likenesses, rejected the NCAA’s arguments that the restraints were necessary to preserve amateurism, maintain competitive balance, promote the integration of academics and athletics, and increase its total output.

The NCAA announced that it will appeal the decision.