Now the Justice Department is going after the Ivy League for not competing for student athletes, because the League bans athletic scholarships. I think the two cases differ in that any sports league needs rules to maintain competitive balance. Without them, one team will dominate and the value of the league would be vastly diminished. For example, the NFL has salary caps to maintain competitive balance.
However, the Ivy League doesn't need to fix wages of student athletes at zero to do this. For example, competitive balance could be maintained by fixing the level of scholarships at tuition, room and board, plus expenses. If I had to guess, this will be the likely outcome of the suit, brought by Brown University basketball players, now that the Justice Department has weighed in..
HT: Kate S.
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