Ex-Player Sues NCAA Over Scholarships

A former college baseball player, Riley Cornelio, has initiated a federal antitrust lawsuit against the NCAA and major collegiate conferences, alleging that they engage in wage fixing by imposing scholarship limits. Filed in Colorado, the lawsuit seeks class-action status for college baseball and hockey players, claiming that the NCAA and its member conferences operate as a cartel. The complaint argues that the capping of scholarship funds at low levels constitutes an unlawful restraint under Section 1 of the Sherman Act, mirroring the effects of wage fixing in other industries. The lawsuit comes amid ongoing legal challenges to NCAA compensation rules, with a proposed settlement in place that addresses three antitrust lawsuits. This settlement, which requires judicial approval, aims to provide $2.78 billion in damages to current and former college athletes. It includes provisions for a revenue-sharing system and an increase in scholarship opportunities, transitioning from strict limits to roster caps. For baseball, the current scholarship limit of 11.7 per team could be replaced with a cap of 34 players, allowing schools to offer full scholarships to all. Despite the proposed changes, the landscape of college athletics remains fraught with legal disputes. Cornelio's lawsuit is backed by the same legal team representing former Colorado football player Alex Fontenot, who filed a similar antitrust claim last November. Fontenot's case argues that NCAA regulations have unlawfully restricted athletes from receiving fair compensation from the substantial revenues generated by their respective programs. As the NCAA and its conferences seek to resolve ongoing litigation, the potential for further challenges looms, indicating that the debate over athlete compensation is far from settled.