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Faced with the prospect of reshaping college athletics, the U.S. Supreme Court issued a narrow, but potentially transformative ruling Monday in a case that pitted college athletes against the NCAA.
At issue in the case were the NCAA rules that limit educational benefits for college players as part of their scholarships.
The athletes maintained that the NCAA has, in effect, been operating a system that is a classic restraint of competition--in short, a system that violates the nation's antitrust laws. The NCAA countered that its rules are largely exempt from the antitrust laws because they are aimed at preserving amateurism in college sports and because the rules "widen choices for consumers by distinguishing college sports from professional sports."
On Monday, however, a unanimous court ruled that the NCAA rules are not reasonably necessary to distinguish between college and professional sports.
The NCAA "seeks immunity from the normal operation of the antitrust laws," Justice Neil Gorsuch wrote for the court. But added that the court declines this request because "this suit involves admitted horizontal price fixing in a market where the defendants exercise monopoly control."
Read more here. (NPR)
At issue in the case were the NCAA rules that limit educational benefits for college players as part of their scholarships.
The athletes maintained that the NCAA has, in effect, been operating a system that is a classic restraint of competition--in short, a system that violates the nation's antitrust laws. The NCAA countered that its rules are largely exempt from the antitrust laws because they are aimed at preserving amateurism in college sports and because the rules "widen choices for consumers by distinguishing college sports from professional sports."
On Monday, however, a unanimous court ruled that the NCAA rules are not reasonably necessary to distinguish between college and professional sports.
The NCAA "seeks immunity from the normal operation of the antitrust laws," Justice Neil Gorsuch wrote for the court. But added that the court declines this request because "this suit involves admitted horizontal price fixing in a market where the defendants exercise monopoly control."
Read more here. (NPR)