The NCAA Is Running an Illegal Cartel and the Supreme Court Knows It

this last argument in 2019 while rejecting the rest. It permitted the NCAA to ban direct, unlimited compensation for athletes. Yet the court also held that the NCAA cannot forbid colleges from awardingbenefits to athletes. The student-plaintiffs accepted that decision, but the association appealed—first to the appeals court , and then to SCOTUS.

In his opinion for the court on Monday, Gorsuch gave the athletes a clean victory. He declined to exempt the NCAA from the Sherman Act, writing that organizations serving “uniquely important social objectives” do not get “special dispensation” to ignore the law. So even if the association is right that “amateurism in college sports” is a valuable objective, the NCAA cannot use it to avoid antitrust scrutiny.

All of the restaurants in a region cannot come together to cut cooks’ wages on the theory that “customers prefer” to eat food from low-paid cooks. Law firms cannot conspire to cabin lawyers’ salaries in the name of providing legal services out of a “love of the law.” Hospitals cannot agree to cap nurses’ income in order to create a “purer” form of helping the sick. News organizations cannot join forces to curtail pay to reporters to preserve a “tradition” of public-minded journalism.

The bottom line is that the NCAA and its member colleges are suppressing the pay of student athletes who collectively generate billions of dollars in revenues for colleges every year. Those enormous sums of money flow to seemingly everyone except the student athletes. College presidents, athletic directors, coaches, conference commissioners, and NCAA executives take in six- and seven-figure salaries. Colleges build lavish new facilities.

Those traditions alone cannot justify the NCAA’s decision to build a massive money-raising enterprise on the backs of student athletes who are not fairly compensated. Nowhere else in America can businesses get away with agreeing not to pay their workers a fair market rate on the theory that their product is defined by not paying their workers a fair market rate. And under ordinary principles of antitrust law, it is not evident why college sports should be any different.

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