During the 1980s, the NCAA, a voluntary unincorporated association of approximat

Question

During the 1980s, the NCAA, a voluntary unincorporated association of approximately 1,100 educational institutions, became concerned over the steadily rising costs of maintaining competitive athletic programs. As a way of containing those costs, the association imposed salary caps on college and university athletic coaches. The caps on salaries as well as limits on number and types of coaches were imposed pursuant to NCAA procedures and members’ votes. A group of coaches filed suit, challenging the caps on salaries and hiring as being anticompetitive. The NCAA responded that it had a goal of containing athletic program costs as well as ensuring that entry-level coaching positions were available. Are the salary caps legal under the federal antitrust laws? [Law v. National Collegiate Athletic Ass’n, 134 F.3d 1010 (10th Cir.)]

Explanation / Answer

At Antitrust laws exist to prevent businesses from conspiring to restrict pay and or set prices based on artificially or manipulative demands and or restricting the competition.

As per my understanding the courts are supposed to look into the bigger picture about the salary caps and see if there is unfair competition and or restrictive policies to curb competition and competent persons are denied fair payments and or failed to get the proper employment. There may be valid reasons for the NCAA to put caps on salaries as well as limits on number and types of coaches. One reason given as its concern over the steadily rising costs of maintaining competitive atheletic programs. As per my understanding the given reason is not sufficient and therefore the salary caps are illegal as per the federal antitrust laws.

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