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Law360, New York (November 19, 2015, 10:13 AM ET) -- In O'Bannon v. NCAA, the Ninth Circuit held that NCAA regulations barring compensation to student-athletes are subject to antitrust scrutiny under the Sherman Act’s rule-of-reason analysis. The court upheld the district court’s order enjoining the NCAA from prohibiting its member schools from giving student-athletes scholarships up to the full cost of attendance at their respective schools. In an interesting twist, however, the court reversed the district court’s injunction that would have entitled student-athletes to up to $5,000 per year in deferred compensation, to be held in trust for student-athletes until after college.
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