Alston v. National Collegiate Athletic Association, No. 19-15566 (9th Cir. 2020)Annotate this Case
In this antitrust action, the Ninth Circuit affirmed the district court's order enjoining the NCAA from enforcing rules that restrict the education-related benefits that its member institutions may offer students who play Football Bowl Subdivision football and Division I basketball.
The panel held that the district court properly applied the Rule of Reason in determining that the enjoined rules are unlawful restraints of trade under section 1 of the Sherman Act. In this case, the district court found that the NCAA's rules have significant anticompetitive effects in the relevant market for student-athletes' labor on the gridiron and the court; the district court fairly found that NCAA compensation limits preserve demand to the extent they prevent unlimited cash payments akin to professional salaries, but not insofar as they restrict certain education-related benefits; and the district court did not clearly err in determining that the less restrictive alternative would be virtually as effective in serving the procompetitive purposes of the NCAA's current rules, and may be implemented without significantly increased cost.
The panel also held that the record supported the factual findings underlying the injunction and that the district court's antitrust analysis is faithful to the panel's decision in O'Bannon v. NCAA (O’Bannon II), 802 F.3d 1049 (9th Cir. 2015).