9th Circuit Affirms, Modifies NCAA Anti-trust Ruling in O'Bannon Case

In O'Bannon v. NCAA the U.S. Court of Appeals for the 9th Circuit has affirmed the District Court finding that  the NCAA has violated anti-trust laws.  The court writes:

Section 1 of the Sherman Antitrust Act of 1890, 15 U.S.C. § 1, prohibits “[e]very contract, combination . . . , or conspiracy, in restraint of trade or commerce.” For more than a century, the National Collegiate Athletic Association (NCAA) has prescribed rules governing the eligibility of athletes at its more than 1,000 member colleges and universities. Those rules prohibit student-athletes from being paid for the use of their names, images, and likenesses (NILs). 

But the panel limited the remedy, saying that

"the district court identified one proper less restrictive alternative to the current NCAA rules¯i.e., allowing NCAA member to give scholarships up to the full cost of attendance¯but the district court’s other remedy, allowing students to be paid cash compensation of up to $5,000 per year, was erroneous. The panel vacated the district court’s judgment and permanent injunction insofar as they required the NCAA to allow its member schools to pay student-athletes up to $5,000 per year in deferred compensation."

- gwc