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The US Court of Appeals for the Tenth Circuit applies a “quick look” rule of reason analysis and ultimately rejects an association-wide salary cap imposed on a position within each member organization in the college basketball industry (Law / NCAA)

The U.S. Tenth Circuit struck down an NCAA-wide salary cap imposed on the earnings of “restricted-earnings” coaches as an unreasonable restraint of trade. Instead of applying per se illegality to a price-fixing agreement, the Court determined that a “quick look” rule of reason was more appropriate because of the nature of the market for college basketball. The Court then followed a burden-shifting process, requiring that plaintiffs first demonstrate sufficient adverse effects on the market and then shifting the burden to the defendant to offer pro competitive justifications. By nature of the price-setting agreement, the Court found that the plaintiffs easily demonstrated adverse effects on the market, but determined that defendant’s justifications were insufficient and concluded that the

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Katherine Whitehead Miller, The US Court of Appeals for the Tenth Circuit applies a “quick look” rule of reason analysis and ultimately rejects an association-wide salary cap imposed on a position within each member organization in the college basketball industry (Law / NCAA), 23 January 1998, e-Competitions January 1998, Art. N° 62475

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