The 9th U.S. Circuit Court of Appeals ruled against a proposal Wednesday that would have forced the NCAA to allow schools to pay their student-athletes up to $5,000 per year in deferred compensation for use of names and likeness.
The court did however uphold the case of Ed O’Bannon v. NCAA on Wednesday, ruling that the NCAA violated antitrust laws in giving no compensation to players after using their likeness and names for NCAA profit. O’Bannon, a former UCLA basketball player, originally won his lawsuit in 2014.
NCAA President Mark Emmert said in a statement that he stands behind the court’s ruling to prevent the extra payment plan.
“We agree with the court that the injunction ‘allowing students to be paid in cash compensation of up to $5,000 per year was erroneous,” Emmert said.
Emmert however was critical of the court’s mandate to allow schools to compensate players in tuition costs.
“Since Aug. 1, the NCAA has allowed member schools to provide up to the full cost of attendance, and we disagree that it should be mandated by the courts.”
The panel of judges described the NCAA’s rules as “more restrictive than necessary” in ensuring that college sports remain completely amateur, but agreed with the NCAA’s stance that student-athletes should not be paid on an annual basis.
“The Rule of Reason requires that the NCAA permit its schools to provide up to the cost of attendance to their student-athletes,” the panel said. “It does not require more.”