Appeals court agrees NCAA violates antitrust law - CBSSports.com

In a significant opinion from the Ed O'Bannon case, the US Ninth Circuit Court of Appeals upheld a lower court's decision that NCAA rules restricting payment to college athletes violate antitrust laws, but determined a federal judge erroneously allowed players to be paid up to $5,000 per year in deferred compensation.

“The NCAA is not above the antitrust laws, and courts cannot and must not shy away from requiring the NCAA to play by the Sherman Act's rules,” the three-person panel wrote. “In this case, the NCAA's rules have been more restrictive than necessary to maintain its tradition of amateurism in support of the college sports market. The Rule of Reason requires that the NCAA permit its schools to provide up to the cost of attendance to their student athletes. It does not require more.”

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