A PYMNTS Company

NCAA Scholarship Limits: Antitrust Violation?

By  |  July 26, 2012
NCAA Scholarship Limits: Antitrust Violation?

A former college quarterback who had his scholarship dropped after a coaching change is suing the NCAA for violating federal antitrust laws. The complaint alleges NCAA restrictions on multi-year scholarships and limits on the number and amount of scholarships illegally restrains student athletes in their efforts to market themselves in a free market. Counsel for the plaintiff commented “[T]he NCAA is using its monopoly position to lock student athletes into scholarships at a lower value than an open market for their services would command.”
The NCAA now allows multi-year scholarships, but many schools continue to oppose them, fearing they will be forced to offer them to remain competitive for top recruits.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full content: Reuters

     

    Related content: American Needle: the Sherman Act, Conspiracy, and Exclusion

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.