The United States Supreme Court unanimously ruled Monday morning that the NCAA cannot restrict educational benefits schools provide to student-athletes, such as free laptops or paid internship for college graduates, which is seriously damaging the NCAA’s current business model.
The court focused solely on educational benefits under the NCAA trial initiated by the former West Virginia running back Shawne Alston and did not elaborate on the other compensation rules for the Board of Directors.
“These remaining compensation rules generally restrict student athletes from receiving compensation or benefit from their colleges from engaging in sports,” Justice Justice Brett Kavanaugh wrote. “And these rules have also prevented student athletes in the past from receiving money from advertising contracts and the like. I add this consensus to underscore that the remaining NCAA compensation rules raise serious antitrust issues as well.
“Nowhere else in America can companies get away with not paying their workers a fair wage because their product is defined by the fact that they don’t pay their workers a fair wage. And according to the usual principles of antitrust law, it is not clear why university sports should be different. The NCAA is not above the law.
“The NCAA formulates its arguments for not paying student athletes in harmless labels. But the labels can’t disguise the reality: The NCAA’s business model would be downright illegal in almost every other industry in America. “
The Supreme Court ruling comes at a time when 19 states, including Ohio, are preparing to enact laws that will allow student athletes to benefit from their name, image, and likeness.
It is also the first time since 1985 that the Supreme Court has dealt with the administration of college athletics, having previously ruled that the NCAA violated antitrust laws by limiting the number of times a school can appear on television.
“Although the decision does not directly relate to name, image and likeness, the NCAA is still committed to supporting NIL benefits for student athletes,” said NCAA President Mark Emmert said in a statement. “In addition, we remain committed to working with Congress to plan a way forward, which the Supreme Court specifically mentioned in its judgment.”
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