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NCAA Scholarship Limits: Antitrust Violation?

By  |  July 26, 2012

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.

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