Authorizations & Regulations; Antitrust
In re: National Collegiate Athletic Association Athletic Grant-in-Aid Cap Antitrust Litigation (N.D. Ca., Aug. 5, 2016)
In this consolidated action, Plaintiff student-athletes who played Division I football and basketball between March 5, 2014 and the present filed suit against the National Collegiate Athletic Association (NCAA) and a group of Division I conferences, alleging that Defendants conspired to impose a cap on the amount of grant-in-aid compensation that student-athletes may receive, in violation of federal antitrust law. Defendants moved for judgment on the pleadings, seeking an order dismissing Jenkins v. NCAA in its entirety and dismissing the portion of the consolidated action that seeks injunctive relief. The Court denied the motion, finding that the Ninth Circuit's ruling in O'Bannon v. NCAA—that “offering [student-athletes] cash sums untethered to educational expenses" was not a less restrictive alternative to the NCAA's current rules under the rule of reason—does not foreclose Plaintiffs' challenge to the NCAA's current rules.