Literature Review 1

Literature Review 1: A Short Treatise on Amateurism and Antitrust Law: Why the NCAA’s No-Pay Rules Violate Section 1 of the Sherman Act
 

   In this article, Marc Edelman discusses the idea that not only should the NCAA pay their student athletes, but by not doing so they are breaking the law. The Sherman Antitrust Act was a landmark decision by the U.S. Congress in 1890 that ultimately was used to help dissolve the monopolies and cartels that were rooted in the American business industry. What Edelman is trying to argue is that by not paying the players, the NCAA is violating some of these limitations that were put forth by the Sherman Act. Edelman describes some of these limitations in his article: “. . . The no-pay rules represent a form of wage fixing that harms not only the market for student-athlete services but also the quality of college sports’ on-field product” (76).Edelman explains that those at the head of the monopolies of the past would use wage fixing as a way of injuring the market and that this act was deemed illegal by the Sherman Act. So by agreeing not to pay the players, the NCAA is engaging in a form of wage fixing, forcing the players to go play for the NCAA because there is no alternate place where they can get a higher wage. Edelman also argues that: “. . . The NCAA rules constitute an illegal group boycott of those colleges that would otherwise compete in a free market to recruit student-athletes” (76). In this instance, Edelman argues that by not allowing the different colleges to offer compensation as a way of recruiting players, the NCAA is again violating the Sherman Act. So is these things are true then why hasn’t the NCAA been prosecuted for their wrongdoings; Edelman explains: “Although eight lower courts have found the NCAA’s eligibility rules to be noncommercial and thus exempt from the Sherman Act, each of these decisions is wrongly decided” (98). Because the NCAA is not seen as a commercial business the charges from the Sherman Act cannot be applied, but clearly Edelman feels this to be a wrong judgment. Edelman’s piece brought a whole new light to this debate that I was unaware of. I had always considered this to be a moral or economic issue, but clearly it can also be seen as a legal issue and that is certainly worth mentioning in my essay.

Key Terms:

Monopoly: The exclusive possession or control of the market on any service or commodity.

Sherman Act: A federal law passed in 1890 that was aimed

Marc Edelman, law professor at The City University of New York, specializing in sports law.

at putting an end to the monopolies and cartels that were looming at the time.