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NCAA Could Take Huge Hit in Antitrust Suit

Lester Munson, the legal analyst for Sports Illustrated, has a fascinating look at a class action antitrust lawsuit that is scheduled to go to trial in June and could cost the NCAA a huge amount of money.

At issue is the NCAA's policy of not including school supplies, recommended text books, laundry expenses, health and disability insurance, travel expenses and incidental expenses in its athletic scholarships. The lawsuit says that unfairly costs athletes an average of $2,500 a year, and since the suit represents all 11,500 Division I athletes, encompasses four years of school and antitrust suits allow for triple damages, we could be looking at the NCAA losing $344 million. The NCAA's annual budget is $465 million.

The NCAA's lawyer, of course, says schools can't afford to pay for all those extra things the lawsuit is saying should be covered by athletic scholarships, but I get kind of tired of hearing what the schools can't afford when I read about the dozens of coaches making seven-figure salaries. This is an important case to keep an eye on.

Hat tip: Signal to Noise.

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