O'Bannon v. National Collegiate Athletic Association Case Brief Summary | Law Case Explained

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O'Bannon v. National Collegiate Athletic Association | 802 F.3d 1049 (2015)

In the 1984 case National Collegiate Athletic Association, or NCAA, versus Board of Regents, the United States Supreme Court held that the NCAA must comply with the provisions of the Sherman Antitrust Act, which prohibits unreasonable restraints on trade. More than thirty years later, in the 2015 case O’Bannon versus NCAA, the United States Court of Appeals for the Ninth Circuit considered whether the NCAA’s amateurism rules limiting student-athlete compensation to scholarships violated antitrust laws.

In 2008, former UCLA all-American basketball player Ed O’Bannon visited a close friends’ house. While visiting, the friend’s son told O’Bannon that he was depicted in a college-basketball video game. The friend’s son then turned on the video game and showed O’Bannon his virtual avatar, which included his name, jersey number, and college. O’Bannon never consented to the use of his likeness in the video game and had never been compensated for it.

Subsequently, O’Bannon sued the NCAA and the Collegiate Licensing Company, which licenses NCAA trademarks, in the United States District Court for the Northern District of California. Specifically, O’Bannon argued that the NCAA’s amateurism rules, which prohibit athletes from being paid for their names, images, or likenesses, were an illegal restraint of trade under the Sherman Act. Following a bench trial, the court entered judgment for O’Bannon, holding that the NCAA’s rules prohibiting student-athletes from being paid violated the Sherman Act. The court also enjoined the NCAA from prohibiting schools from paying athletes up to $5,000 per year in deferred compensation. The NCAA appealed to the Ninth Circuit.

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