Bobcat Love's Sense of Shame
8/10/2023 5:42 PM
The main argument for NIL was that the schools were making tons of money therefore the "workers" should be able to share that money.
You're mixing up profit and revenue. And you're misinterpreting Kavanaugh's argument. The main argument isn't that schools are making tons of money and should share it.
The NCAA + member schools are making billions of dollars in revenue from athletes. That doesn't mean they're profitable, because a lot of them spend more than they make. That's the point I was making providing a list of companies that aren't profitable.
Kavanaugh's point isn't about how much money the schools are making. It doesn't matter if they're earning a million in revenue or billions. His argument is that they are businesses, and therefore subject to antitrust law.
Before your quote, he says:
"The NCAA’s business model would be flatly illegal in almost any other industry in America. All of the restaurants in a region cannot come together to cut cooks’ wages on the theory that 'customers prefer' to eat food from low-paid cooks. Law firms cannot conspire to cabin lawyers’ salaries in the name of providing legal services out of a 'love of the law.' Hospitals cannot agree to cap nurses’ income in order to create a 'purer' form of helping the sick. News organizations cannot join forces to curtail pay to reporters to preserve a 'tradition' of public-minded journalism. Movie studios cannot collude to slash benefits to camera crews to kindle a 'spirit of amateurism” in Hollywood."
Price-fixing labor is price-fixing labor. And price-fixing labor is ordinarily a textbook antitrust problem because it extinguishes the free market in which individuals can otherwise obtain fair compensation for their work."
"All of the restaurants in a region cannot come together to cut cooks’ wages on the theory that 'customers prefer' to eat food from low-paid cooks. Law firms cannot conspire to cabin lawyers’ salaries in the name of providing legal services out of a 'love of the law.' Hospitals cannot agree to cap nurses’ income in order to create a 'purer' form of helping the sick. News organizations cannot join forces to curtail pay to reporters to preserve a 'tradition' of public-minded journalism. Movie studios cannot collude to slash benefits to camera crews to kindle a 'spirit of amateurism” in Hollywood. . .Businesses like
the NCAA cannot avoid the consequences of price-fixing labor by incorporating price-fixed labor into the definition of
the product."
His point isn't "they're earning a lot of money, so should have to pay players." It's that under any reasonable definition, the NCAA is a business, and no other business in the country gets to say the very nature of their business depends on price-fixing labor. Profit's not relevant, basic anti-trust law is.
Last Edited: 8/10/2023 5:50:13 PM by Bobcat Love's Sense of Shame