My bad I get the Bill of Rights mixed in with the constitution from time to time, but how would that not be considered a violation of antitrust laws? Lol im going to love this response btw
The NCAA can’t cap a separate business. It’s like saying the NFL can cap how much the players make for doing commercials. It’s a totally separate entity.
If the schools were the ones paying the NIL then sure they could place a cap on it. But if I want to hire a player to do promos for my business you can’t tell me how much I can pay him. That’s where the violations would occur.
Jason is correct. The NCAA has zero authority to
tell a business how much it can pay an athlete for NIL - a private transaction between two parties. The NCAA
does however have control over the S-As who want to play intercollegiate athletics at NCAA member institutions. The NCAA can still completely and totally disallow NIL for student-athletes wishing to compete for member institutions. That is still not against the law - which was my original point in that Alston does not say what a lot of people think it says. The NCAA subsequently threw its hands up in regards to allowing NIL, so it is currently a free-for-all, but it still has the legitimate legal authority to implement rules as it sees fit until a SCOTUS ruling dictates that they cannot. That has not happened yet.
What could the NCAA do to cap NIL for student athletes? They could use a two-prong mandatory reporting requirement (failure to report = suspension) combined with a cap on S-A earnings at say 1mil/year (a player who accepts more than 1mil in NIL funds would be ineligible to compete). Another option would be for the NCAA to restrict the timing on NIL for S-As. Perhaps a rule that states "Player may not receive anything of value in exchange for NIL rights until completion of first semester and while in good academic standing." The possibilities are endless. But for each rule the NCAA passes (without further Congressional action), they would be subject to antitrust litigation.
So what is antitrust law and how does it work in re: the NCAA?
Antitrust law exists to make sure that businesses stay fairly competitive with each other and do not harm consumers by predatory practices. But the NCAA (among other certain industries) is unique. One of the holdings in NCAA v Board of Regents is that the NCAA is unique when dealing with antitrust issues. The NCAA product market is competition, and for that product to exist at all, the court has to allow certain practices that would never be allowed in other industries (mainly as it relates to agreement between competitors). In antitrust parlance, that means the difference between "per se" and "rule of reason" analysis. In rule of reason analysis, the court looks at both the pro-competitive and anti-competitive justifications for any given rule to see what the effect is on the market. The court asks for legitimate business factors for why the rule exists and ultimately will ask one simple question: Is this the least restrictive way to achieve a legitimate business goal.
As I said previously, the NCAA has successfully defended certain rules under 1) health and safety considerations, and 2) amateurism. In the example above, the NCAA may posit that the legitimate business interest for having a time restriction on NIL is so that schools (or collectives acting on behalf of schools) don't just buy players while still allowing those S-As to benefit from their NIL. Schools would still stay fairly competitive, players would still ultimately benefit and it just may well be the least restrictive way to accomplish that goal for the NCAA. A court could legitimately view a time restriction as pro-competitive because schools/proxies can't buy players, and S-As still have their NIL rights. We just don't know yet. Kavanaugh hinted that he would rule against any rule, but the other 8 Justices have remained silent, save for a narrow ruling in Alston (when they could've gone broader) which disallowed a cap on educational benefits above the cost-of attendance.