Sports Law Final
NCAA
An unincorporated, voluntary, private association, consisting of nearly one thousand members, divided into three levels. • All college teams, conferences, coaches, administrators, and athletes must abide by its rules.
NCAA's "purpose"
"To maintain intercollegiate athletics as an integral part of the educational program and the athlete as an integral part of the student body and, by so doing, retain a clear line of demarcation between intercollegiate athletics and professional sports."
Illegal Gambling Business Act of 1970
"Whoever conducts, finances, manages, supervises, directs or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years or both. - An illegal gambling business is any gambling business which: "(i) is a violation of the law of a State or political subdivision in which it is conducted; (ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and (iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day."
Restraint of trade (element #2) in proving §1 violation
"rule of reason" - Balancing pro-competitive results against anti-competitive results - Must prove three elements: (1) There is an agreement between two separate entities (2) The agreement adversely affects competition in a relevant market (3) The anti-competitive effects of the agreement outweigh the procompetitive benefits - Note: if the pro-competitive benefits outweigh the anticompetitive effects, the question then becomes "is there a less restrictive means by which the pro-competitive benefits could be achieved without causing the anti-competitive effects?
Courts have interpreted §1 to prohibit only those actions that...
"unreasonably" restrain trade.
NCAA Total Revenues
$913M --> 84% (770M) from TV and marketing rights for NCAA Tournament/March Madness
Unions have...
(1) An implied labor exemption from antitrust laws to enter into contract with multi-employer bargaining units; (2) The right to advance legitimate employee goals that restrain trade no more than is necessary to achieve those goals.
Two general consequences of market power
(1) Higher prices and; (2) the amount of the good or service produced for and purchased by consumers will drop.
A §1 violation requires proof of three elements:
(1) The existence of an agreement among two or more parties - There must be a combination between parties - They must have acted in concert - They must have engaged in a conspiracy (2) The activity unreasonably restrains trade - The challenged conduct's anti-competitive results outweigh the conduct's pro-competitive results --> "per se rule," "rule of reason" (3) The activity affects interstate commerce
A §2 violation requires proof of two elements:
(1) The possession of monopoly market power (2) The use of unacceptable means to acquire, entrench, or maintain that market power
Predominant purpose test
Applied by most states, deems an activity to be one of chance where 'greater than 50 percent' of the result is derived from chance.
In 2014...
- 1.5 million Americans paid more than $1 billion in tournament entry fees - More than 100 companies offer DFS games online - FanDuel grew 300% in active customers - Yahoo! announced it would join the industry - DraftKings' exclusive advertising deal with Disney reportedly guarantees $250 million in advertising on ESPN - Sponsorships in every major professional sports league - Concern that skilled players will entirely wipe out recreational players in short order --> Poker: pros play in certain areas ($5k buy-ins ex.); DFS: all participants are lumped together, and skilled players win a huge percentage of contents. For MLB 91% of player profits were won by 1.5% of players.
Powell v. NFL
- As long as the conditions imposed by the league resulted from good faith bargaining during the collective bargaining process, the exemption continued after the expiration of the CBA and after impasse. - So as long as the NFL and NFLPA maintain a continuing bargaining relationship, the contract provisions in the agreement were exempt from antitrust litigation.
To determine whether a good faith impasse has occurred the courts will weigh a number of factors:
- Bargaining history - Good faith of parties - Length of negotiations - Importance of the issues that are in disagreement - Understanding of the parties as to the state of negotiations - Fluidity of positions - Demonstration of willingness by parties to consider a position.
Division II and III
- Broad participation - Serve the participants rather than the spectators or general public
No protection for novices
- In poker, the pros won't play with recreational players because the rewards aren't worth it. With a $5,000 buy-in v a $25 buy-in it's not worth it for a sophisticated poker player to take money from the novices. - In DFS, everyone plays together, allowing sophisticated consumers to take advantage of novices.
§ 6 - Statutory Labor Exemption
- Labor of a human being is not a commodity or article of commerce, unions are not, by definition, violations of Sherman Act
NCAA Financial Success
- NCAA itself estimates that college athletics generates over $10 billion in revenue annually. - Television contracts? --> NCAA men's basketball -- $771 million a year; 8 year extension for $8.8 billion (to 2032); BCS football -- $5.6 billion for 12 years
Professional and Amateur Sports Protection Act (PASPA)
- Passed by Congress in 1992 in response to pressure by US professional sports leagues to crack down on private and state-sponsored sports gambling - Makes illegal (except in grandfathered states) any state action that makes sports or sports-related betting legal. - Statute further grants standing to America's four major professional sports leagues and the NCAA to bring suit against any state or individual that operates such a wagering scheme. - Only federal statute that makes it illegal to operate certain forms of sports gambling, even where these forms of gambling otherwise comply with all applicable state laws. - PASPA event prevents states themselves from legalizing certain forms of sports gambling within their own borders..... - PASPA has been criticized for its grandfathering in Delaware, Montana, Nevada and Oregon to maintain certain forms of sports gambling that the act outlaws elsewhere. - NJ is challenging PASPA - As of today, PASPA remains binding law on all states & individuals
Membership in divisions is based on:
- Sponsoring a minimum number of sport programs, restrictions on athletic scholarships - Football stadium size and attendance
Division I
- Strive for national prominence - Sponsor at the highest feasible level, spectator-oriented, income-producing sports of football and basketball --> Further divided into BCS and FBS divisions.
Mackey Test:
- The restraint on trade must primarily affect only the parties to the CBA. - The issue must concern a mandatory subject of bargaining; and - The issue must have been achieved through arm's-length bargaining.
Sports Betting - 3 Types
1) Horse racing - Federal law permits state regulated horse racing & interstate offtrack betting 2) Professional sports - Prohibited by federal law except in Nevada, Delaware, Montana & Oregon; Nevada: bookmakers, locations & online; Delaware: allows "a parlay" form of sports betting; NJ: current case 3) Fantasy sports
Antitrust Law Defenses
1. Baseball Exemption - Curt Flood Act repealed part of this exemption 2. Clayton Act § 6 - Statutory Labor Exemption 3. 1961 Sports Broadcasting Act 4. Non-statutory labor exemption = Protects agreements reached between unions and employers
Gambling if:
1. Consideration - A wager of some value in order to win something of value 2. Reward / Prize - What you get when you win, whether of monetary value or something else 3. Chance - There must be at least enough variance that an unskilled or lesser skilled bettor can win said prize, at least in the short run
Gambling requires 3 elements:
1. Consideration - There must be a wager of some value in order to win something of value 2. Prize - What you get when you win, whether of monetary value or something else 3. Chance - There must be at least enough variance that an unskilled or lesser skilled bettor can win said prize, at least in the short run
NLRB's general counsel's office which:
1. Determines whether unfair labor practice charges are to be prosecuted. 2. Supervise all NLRB EEs and attorneys.
If an EEs rights are violated, EE may file an unfair labor practice charge with the NLRB. The process is as follows:
1. File the charge with the NLRB regional office within six months. 2. Investigation by the NLRB into the charge and the decision whether the charge advances—similar to discovery. Charge is either dismissed or there is an official filing of a complaint. 3. Hearing before an administrative law judge. 4. Decision, which may be appealed to the appropriate court of appeals.
Why arbitration?
1. Keep disputes out of the legal system. 2. Protect due process rights for EEs.
Three factors that impact a union's power:
1. Maturity of the union. 2. Bargaining power and leverage. 3. Company stability.
A new four-pronged test for antitrust immunity created deciding that the labor exemption was applicable (i.e. new test for unilateral implementation of last pre-impasse proposal), if the challenged conduct:
1. New terms included in employer's last pre-impasse proposal 2. Employers cannot have bargained in bad faith 3. Implemented terms concern only the parties to the collective bargaining agreement 4. Terms must involve a matter on which parties required to negotiate collectively.
NLRB Five Person Board whose purpose is to:
1. Prevent and remedy unfair labor practices. 2. Determine representatives (select a union) for collective bargaining. 3. Determine whether it's a union shop (req'd membership) or agency shop 4. Determine jurisdictional disputes that have led to the filing of an unfair labor practice 5. To poll EEs on their ERs last offer in "national emergency" situations.
Mitigating problems with DFS
1. Salary-cap pricing could be made more accurate 2. Limits 3. Know your customer 4. Player protection 5. Technical security 6. Suitability & licensure 7. Impact on real world sports
Three Factors have driven how DFS has developed
1. Strategy 2. Inefficient pricing 3. No protection for novices.
NLRB Functions
1. Supervising and conducting representation elections. 2. Adjudicating ER and union unfair labor practices.
Limitations on remedies:
1. The NLRA gives EEs the right to strike, however, if the CBA exists and agrees to binding arbitration in place of a no-strike clause, ER may stop the strike. 2. Strikers engaged in an economic strike may be replaced but not if they are on an unfair labor practice strike.
Daily Fantasy Sports marketplace didn't exist until
2007
DFS industry did not reach a notable size or scope until
2013
Law of Collective Bargaining
=ER may not refuse to bargain w/ EE over certain subjects— defined as mandatory subjects of bargaining. There are also permissive subjects of bargaining. - There is no law that an agreement must be reached, but both sides must bargain in good faith until an agreement is reached or they declare an impasse. - If impasse is reached, ER may unilaterally impose its proposed changes, so long as they were previously offered to the union for consideration during bargaining.
Monopoly
A description of a market condition where all or nearly all of an article of trade or commerce within a community or district is brought within the control of one person or company, thereby excluding competition or free traffic in that article.
Salary Caps
A restriction or limit on the amount of money that may be made available by the league to pay player salaries;The basic idea is that a team can only sign a free agent if the total payroll for the team will not exceed the salary cap. So a team with deep pockets is playing on a level playing field with every other team; The caps have been designed as a percentage of certain league revenues. There must be an agreement on what will constitute "defined gross revenue" (DGR).
Clayton Act (1914)
Adopted as a reaction to the vagueness of the Sherman Act (1890); Originally, singled out four practices for specific regulation: a. § 2 - Price discrimination b. § 3 - Tying and exclusive dealing c. § 7 - Stock acquisitions d. § 8 - Interlocking directorates
Arbitration
After unionization one of the first demands of players' associations made was for the implementation of a grievance procedure that was not controlled by the league --> arbitrator is private judge
Non-statutory labor exemption
Allows agreements between unions and employers that otherwise would violate antitrust law; Covers protection from antitrust violation for "concerted action or agreements between unions and non-labor parties."
Norris-LaGuardia Act (1932)
Also known as Federal Anti-Injunction Act; Limited the power of the federal government to issue injunctions and limit union activity; During a labor dispute, a federal court could not issue an injunction forbidding the EEs from refusing to work or peaceful picketing; No limitation on state courts from issuing injunctions.
NLRA § 7 - EE Rights
Assures EEs the following rights: ■ Right to form and organize labor organizations; ■ Right to become members of labor unions or to refuse to join; ■ Right to bargain collectively through representatives of their own choosing; and ■ Right to engage in other concerted activity for the purpose of collective bargaining such as strikes, boycotts, and picketing
Sherman Act Arguments - § 1 - Defendant
Attack elements of claim - Single entity, thus no combination - Doesn't unreasonably restrain trade - Labor exemption (a.k.a. non-statutory labor exemption)
Breach of § 8 provides the following remedies:
Back pay, reinstatement, bargaining order, new election, cease and desist order, or injunctive relief.
Smith v. Pro Football
Balancing Test
Quick-look rule of reason
Balancing pro-competitive results against anti-competitive results; Between rule of reason and per se review. Courts are increasingly applying standards that are neither pure per se or pure rule of reason; Court will probe into certain aspects of restraint while relying on its initial presumptions about others; Most courts do so in favor of the plaintiff, based on a preliminary finding of either market power or anti-competitive effects—but not both; "When an observer with even a rudimentary understanding of economics could conclude that the arrangements in question have an anticompetitive effect on customers and markets." [Cal Dental] ■ Ex: court claims that the "adverse effects of competition are apparent, the court does not require proof of market power, and instead moves directly to an analysis of the defendant's proffered competitive justification for the restraint." [Law v NCAA]
Why was the Clayton Act passed?
Because of the vagueness of the Sherman Act.
Other DI Facts
Big Five generate even higher revenues through independently negotiated television contracts for football broadcasts Existence in Division I outside of Big Five conferences is difficult - Similar operating costs to the Big Five without equivalent revenues - American Athletic Conference, C-USA, MAC, Mtn. West, Sun Belt, WAC
Antitrust Law & Statutes - 1890
Congress passed the Sherman Act—restraint of trade; each state has also passed legislation that mirrors the Sherman Act.
1961 Sports Broadcasting Act
Congressional response to a court ruling that NFL's pooling agreement to broadcast games with CBS violated antitrust laws.
AL Baseball Club v. Chase
Court found that Sherman Act did not apply because baseball was not engaged in interstate commerce
NCAA v. Tarkanian
Court held that the NCAA was a private association and not a state actor, thereby it was not required to provide "due process." • "Taken together, Regents and Tarkanian, have been toxic to the cause of amateur sports played by full-time students in an academic setting." - Brian Porto, "The Supreme Court and the NCAA." • Board of Regents raised the financial stakes in college athletics. • Tarkanian failed to increase the procedural protections of persons accused of rules violations proportionally to the elevated financial stakes despite the loss of employment, a college education, future careers, or earnings as a result of NCAA imposed punishment. • Litigation took 26 years.
Federal Baseball Club v. NL of Prof. Baseball (1922)
Creation of baseball exemption
Defensive lockouts
Done when an ER fears an EE strike when the company may be most vulnerable and initiates a lockout that is more conducive to the ER.
Recently contested states (DFS)
Eleven states: Alabama, Georgia, Hawaii, Illinois, Mississippi, Nevada, New York, South Dakota, Tennessee, Texas, Vermont
Why was the statutory labor exemption enacted?
Enacted because under Sherman Act, labor unions were not allowed.... Why? Because, specifically, unions acted in concert and as such, were defined to be a restraint of trade.
NLRA § 9 - Exclusive Bargaining Unit
Exclusive representatives ■ 9(a)(1) ■ "Representatives designated or selected for the purposes of collective bargaining by the majority of the EEs....shall be the exclusive representatives of all EEs in such unit for the purposes of collective bargaining in respect to rates of pay, wages, hours of employment, or other conditions of employment..." ■ As such, the union is entitled to eliminate all individual bargaining, even when it would secure better terms than the collectively-negotiated minimum. ■ However, by exception, the entertainment industry typically allows individuals to negotiate extra remuneration.
After the Mackey case the important question became: Does the non-statutory labor exemption continue beyond the expiration of the CBA and, if so, for how long?
Exemption after expiration of CBA Bridgeman v. NBA, 675 F.Supp. 960 (D.N.J. 1987) - The CBA between the NBA & NBAPA expired, and at that point, the NBA players challenged the labor exemption granted the NBA on the draft. The Court found: (1) The labor exemption does not end immediately after expiration of CBA (2) The labor exemption was not indefinite after a CBA expired (3) The labor exemption was still applicable ever after impasse
DFS Industry can't decide on what is legal
Federal laws - sort of legal State laws - inconsistent --> 7 state AGs have already declared DFS to be gambling Fantasy Sports Trade Association (FSTA) - The FSTA is the voice for nearly 57 million fantasy sports players in the United States and Canada, and for the companies that provide services, news, information and competition to support this growing industry. Founded in 1998, the FSTA is the only dues-based national organization representing the interests of fantasy sports companies.
Legislation pending
Fifteen states
The industry of college sports
Firms: colleges and universities Product: entertainment to potential fans and buyers Inputs: Capital (facilities) and people (athletic directors, coaches, staff, athletes)
Historically banned states
Five states: Arizona, Iowa, Louisiana, Montana, Washington
DGR usually includes:
Gate receipts, television revenue, licensing, income, concessions, and merchandising.
Relevant market for monopoly:
Geographic; product dimension (slide 13)
Unlawful Internet Gambling Enforcement Act (UIGEA)
Go back to this
§ 4 - Treble Damages
If Sherman Act violation found, damages are trebled.
Inefficient pricing
If the pricing for players represents value perfectly, there are no inefficiencies for pros to capitalize upon. The key for experts is to identify under-priced players.
BCS & Antitrust Laws
In front of Congress during the summer of 2009 - BCS unfairly puts schools like Utah, which is a member of a conference without an automatic bid to the lucrative bowl games, at a competitive and financial disadvantage. - Under the current BCS system, six select conferences are guaranteed to receive a large share of the BCS revenue to distribute among their member schools. Id. The remaining five non-preferred conferences, which include nearly half of all the teams in Division I, all share a much smaller portion of the BCS revenue, even if one of their teams is fortunate enough to play their way into a BCS game. Senator Hatch pointed out that over the lifetime of the BCS, the preferred conferences have received nearly 90 percent of the total revenues.
DFS Federal Laws
Interstate Wire Act of 1964 Illegal Gambling Business Act of 1970 Professional and Amateur Sports Protection Act (PASPA) Unlawful Internet Gambling Enforcement Act (UIGEA)
Rensing v. Indiana State University (1984)
Is a student-athlete an employee of the university?
Salary Structures
League Levels - Agreed upon % shared between owners and players. Defined in collective bargaining as "league-related revenues" (NBA & NFL) Club Level - Salary caps --> Promote competitive balance; Economic viability of league; Broad sharing of revenue - Types: Hard caps - NFL, NHL; Soft caps - NBA; Salary tax - MLB Individual Level - Minimum and maximum salaries
Bargaining Subject Categories
Mandatory Subjects Permissive Subjects Illegal Subjects
Sherman Act § 2
Monopolies; makes illegal any contract, combination, or conspiracy in restraint of trade or commerce.
Sherman Act Arguments - §2 - Plaintiff
Monopoly - Interstate commerce & monopolization
How is money allocated to Division I teams?
Most NCAA distributions go to the "Big Five" conferences (ACC, Big Ten, Big 12, Pac-10 and SEC) based on: - Number of sports the institution offers - Number of athletic scholarships offered - Performance in the men's basketball tournament of the past six years
Antitrust law seeks to promote competition; Labor law seeks to suppress competition --> How do we reconcile these?
Non-statutory labor exemption (a.k.a. "labor exemption"); The Supreme Court has recognized that some union-employer agreements and aspects of the collective bargaining process be accorded a limited non-statutory exemption from antitrust sanctions.
Sherman Act Arguments - §2 - Defendant
Not a monopoly - Larger relevant market - No power to control prices or exclude competition
Offensive lockouts
Occurs when an ER initiates a lockout in an effort to put economic pressure on its EEs.
Impasse
Occurs when two sides in negotiations have bargained in good faith but have reached a deadlock position on a particular issue.
Intra-league restraints
Ownership League Membership Sale of broadcast and sponsorship rights Franchise relocation
Per se rule
Practices that "fall within a division of conduct that is inherently anti-competitive" - Price-fixing, Group boycotts, Dividing up territories, Tying: requirement to purchase one product on the condition that they buy another -Agreements --> Do they eliminate or foster competition? - Horizontal - agreements between competitors (usually bad) - Vertical - supply chain (usually ok) If "per se" illegal, the court will not inquire into the business purpose or actual effect
Three tests to determine if gambling
Predominant purpose test Material element test Gambling instinct test
Interstate Wire Act of 1964
Prohibits individuals and entities from engaging in the business of betting or wagering through the knowing use of "a wire communication facility for the transmission in interstate or foreign commerce...." - Recommended as law by U.S. Attorney General Robert Kennedy - Intended to crack down on organized crime members using the telegraph to get results on horse races - "Wire communication" has been interpreted to include the Internet
Sherman Act §2
Prohibits unilateral monopolization; requires proof of two elements: (1) possession of monopoly market power, (2) the use of unacceptable means to acquire, entrench, or maintain that market power.
Toolson v. Yankees (1953)
Reaffirmation of baseball exemption when reserve system was challenged; Congress not courts.
Players associations object to four main areas because it limits players options to a single team:
Reserve clause - unilateral right to renew a player's K Draft Compensation system Right of first refusal - allows a player's prior team to match competing offers
Sherman Act Arguments - § 1 - Plaintiff
Restraint of trade - Combination, concert, conspiracy - Unreasonably restrains trade - Affects interstate commerce
Sherman Act § 1
Restraint of trade; makes illegal any contract, combination, or conspiracy in restraint of trade or commerce.
Strategy
Since payouts are skewed to the top 1% of participants, one must create a lineup / strategy that will produce extreme outcomes to fall within that top 1%.
DFS allowed in:
Six states: Indiana, Kansas, Maryland, Massachusetts, Rhode Island, Virginia
State Gambling Laws
States differ broadly State gambling law is complex and often rests upon inherently subjective tests - e.g. distribution of skill v chance For the most part, state gambling laws do NOT speak directly to DFS Illegal if: - 1. Consideration - 2. Reward - 3. Chance Predominant purpose test Material element test Strictly illegal
Clayton Act § 6
Statutory Labor Exemption
Antitrust Law & Statutes - 1880s
The Federal Government and states developed legislation to promote competition and prevent monopolies.
§ 6 - Statutory Labor Exemption
The labor of a human being is not a commodity or article of commerce. Nothing contained in the antitrust laws shall be construed to forbid the existence and operation of labor..... organizations from lawfully carrying out the legitimate objects thereof; nor shall such organizations, or the members thereof, be held or construed to be illegal combinations or conspiracies in restraint of trade, under the antitrust laws.
No current legislation
Thirteen states
Larry Bird Exception
This exception allows teams to exceed the salary cap to re-sign their own free agents, up to the player's maximum salary.
Clayton Act §4
Treble Damages - if Sherman Act violation found, damages are trebled.
Clayton Act § 4
Treble damages for Sherman Act violations
NLRA § 8 - Unfair labor practices
Unfair labor practices are: ■ 8(a)(1) - An ER is forbidden from interfering, restraining, or coercing its EEs from exercising their § 7 rights. ■ 8(a)(2) - ERs may not attempt to dominate, interfere with the formation of, and finance and support a labor union. ■ 8(a)(3) - ERs are forbidden to discriminate against EEs on account of their union relationship. ■ 8(a)(4) - ERs are forbidden to fire, discipline, or lay off an EE because he or she has filed an unfair labor practice. ■ 8(a)(5) - ERs must bargain collectively in good faith over wages, hours, and terms of employment.
NLRA § 8 - Unfair union activities
Unfair union activities are: ■ 8(b)(1) - Unions are prohibited from coercing or restraining EEs. ■ 8(b)(2) - Actions that cause an ER to discriminate against an EE for the purpose of encouraging or discouraging union membership are prohibited. ■ 8(b)(3) - Union must bargain in good faith. ■ 8(b)(5) - Union may not require EEs to pay excessive dues. ■ 8(b)(6) - Union may not cause an employee to pay for services not performed.
Lockouts
Used by an ER to preempt a strike, prohibits its EEs from working.
Mandatory subjects of bargaining
Wages - Salaries, OT, profit sharing, stock options, vacation time, holidays Benefits - Health insurance, pension plans, 401k plans Hours of work Working conditions - Personnel policies (layoff) - ER rights & responsibilities - EE rights & responsibilities - Union rights & responsibilities - Dispute resolution
NCAA revenue sharing via..
conferences
material element test
considers not only skill-to-chance ratios, but also "whether the contest is entered into among novices or experts [and] whether the amount of information provided to the contestants negates the skill-based advantages that true experts may have obtained
Market power occurs when...
consumers have few if any alternatives to the seller's product, thus enabling the seller to dictate terms based on profit maximization rather than competitive pressure.
The target of antitrust law (competition law) is...
excessive market power, whether in the hands of a single firm or group of firms that jointly acquire such market power through anticompetitive agreements.
Conferences are...
functional equivalent of the leagues in professional sports; each conference enters into conference-wide television agreements, sponsorships and have revenue sharing agreements.
gambling instinct test
if they involve any chance whatsoever: even a modicum of chance
Leagues argue that...
pro-competitive benefits outweigh anti-competitive effects
The stronger a union...
the more permissive subjects that it will be able to "force" the ER to negotiate.
Clayton Act (1914) originally, singled out four practices for specific regulation:
§ 2 - Price discrimination § 3 - Tying and exclusive dealing § 7 - Stock acquisitions § 8 - Interlocking directorates
O'Bannon v NCAA
• 2009: Case filed • 2010: NCAA's motion to dismiss denied, discovery begins • 2012: O'Bannon changes suit to include payment for NILs use on television • 2013: Keller & O'Bannon cases consolidated. Plaintiffs settle with EA Sports & CLC • 2014: Keller & O'Bannon cases deconsolidated. Keller settles for $20 million • 2014: District Court rules in favor of plaintiffs • 2015: Appellate court affirms in part, vacates in part
Bloom v. NCAA
• Challenge by a student-athlete to keep endorsement money denied. • The NCAA told Bloom, a top-flight wide receiver for the University of Colorado, to give up skiing-related endorsements or forget about ever playing college football. • The NCAA declares it alright to be a professional in one sport and not another, but has decided that they have no ability to differentiate between sports on endorsement and marketing opportunities so student-athletes can't accept those funds. • NCAA redefined "amateurism."
White v NCAA
• Started the discussion on the definition of scholarships v stipends and re-sparked the debate over paying student-athletes. • Suit brought by former NCAA student-athletes Jason White of Stanford (football), Brian Polak of UCLA (football), Jovan Harris of University of San Francisco (basketball), and Chris Craig of Texas-El Paso (basketball) claiming that the NCAA limited the value of athletics scholarships to less than the full cost of attending their colleges. • Suit claimed that the NCAA's restricting scholarships to the cost of tuition, books, housing and meals was an unlawful restraint of trade because of the billions of dollars the NCAA earned through broadcast and television deals. • NCAA study estimated that athletes on full scholarships averaged $2,500 a year in out-of-pocket expenses. • Results: • $10M settlement. • Critical because it resulted in: 1) Expanding funds for current athletes, 2) freed institutions to provide health and injury insurance; 3) set the table for multiyear scholarships.
NCAA v Board of Regents of Univ. of Oklahoma
• The NCAA adopted a plan for the televising of college football games of its member institutions for the 1982-1985 seasons. The plan's intention is to reduce the adverse effect of live television upon football game attendance. The plan limited the total amount of televised intercollegiate football games and the number of games that any one college may televise, and no member of the NCAA is permitted to make any sale of television rights except in accordance with the plan. • Court held that the NCAA's imposed restriction on the number of televised football games was an unreasonable restriction of trade of the Sherman Antitrust Act. • Court defines the NCAA as "the guardian of an important American tradition," namely, amateurism in intercollegiate athletics. • In 1984, the Associated Press projected that all of college football television rights would have sold for $ 43.6 million.