Ivy League Universities Deny Violating Antitrust Law in Athletic Scholarship Lawsuit

On May 15, the eight universities of the Ivy League responded to accusations that their athletic scholarship bans violated U.S. antitrust law. They jointly requested a Connecticut federal judge to dismiss the prospective class action filed by current and former student athletes.

The lawsuit, initiated in March by two athletes from Brown University, claimed that the Ivy League schools, including Brown, engaged in an unlawful price-fixing scheme by denying college athletes certain benefits available at other competing universities.

In their court filing, the defense lawyers representing the universities argued that college athletic leagues have the authority to establish regulations for financial aid and compensation provided to student athletes. They emphasized that the Ivy League schools had independently aimed to foster campus cultures that prioritize factors other than athletics.

Furthermore, the defense lawyers contended that the Ivy League schools, as part of the National Collegiate Athletic Association’s Division I, which consists of over 350 competing schools, do not constitute a “market” as required in an antitrust lawsuit.

Court filings revealed that the two plaintiffs had declined athletic scholarships offered by non-Ivy League schools.

The legal team representing the plaintiffs, including Eric Cramer, chairman of Berger Montague, did not provide an immediate response to requests for comment.

Prominent defense attorneys with expertise in antitrust law have been involved in the case, including Renata Hesse from Sullivan & Cromwell, representing Harvard University; Juan Arteaga from Crowell & Moring, representing Princeton University; Karen Lent from Skadden, Arps, Slate, Meagher & Flom, representing Columbia University; and Douglas Litvack from Jenner & Block, representing Dartmouth College.

Brown University and its legal representatives at Morgan, Lewis & Bockius have not yet issued a comment regarding the lawsuit.

The lawsuit was filed on behalf of all Ivy League athletes who have enrolled in one of the defendant schools since March 2019, following recruitment to participate in one or more sports. The name-plaintiffs from Brown were granted need-based financial aid.

The plaintiffs argue that the Ivy League schools are the only institutions within Division I athletics that refuse to provide any athletic scholarships or other forms of compensation or reimbursement for athletic services.

Following a 2021 U.S. Supreme Court ruling, the NCAA began allowing schools to pay athletes annual academic awards of $5,980.

In a separate lawsuit filed in April, it was alleged that the NCAA’s previous restrictions on such payments had harmed numerous current and former student athletes.

The case is known as Choh et al v. Brown University et al and is being heard in the U.S. District Court, District of Connecticut, under the case number 3:23-cv-00305-AWT.

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