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Court shuts down plan to pay athletes, says NCAA violates antitrust law

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 also determined that a federal judge erroneously allowed players to be paid up to $5,000 per year in deferred compensation.

The panel vacated US District Judge Claudia Wilken's injunction from August 2014 related to athletes receiving extra compensation for the use of their names, images and likenesses. The Ninth Circuit upheld Wilken's ruling giving schools the choice to give athletes scholarships that cover the full cost of attendance -- money that is currently being applied throughout college sports.

The NCAA won a victory by avoiding Wilken's injunction that would have allowed deferred payments to players. But the appellate decision related to antitrust laws could set the stage for the NCAA to attempt to appeal O'Bannon to the Supreme Court. The Ninth Circuit disagreed with the NCAA's interpretation of a 1984 Supreme Court decision that the association has used as a defense for decades in relation to its amateurism rules.

 

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