Episode 579: Is the NCAA An Illegal Cartel?

Enlarge this image Isaac Brekken/ASSOCIATED PRESS Isaac Brekken/ASSOCIATED PRESS

In big-time college football or basketball, money is everywhere. Millions of fans purchase tickets to games. There are giant TV contracts and million-dollar coaches' salaries. Shoe companies like Adidas and Nike compete for contracts with top teams.

But colleges that are caught paying their players (through gifts or otherwise) face serious consequences — it's against NCAA rules to pay athletes. They argue that college athletes are being compensated in the form of scholarships to their schools. The NCAA also argues that the players' amateurism is what drives fans to watch. If college athletes are paid, why not just watch the NFL or the NBA?

Planet Money #579: Is the NCAA An Illegal Cartel? Is the NCAA An Illegal Cartel? Listen · 19:34 19:34

Ed O'Bannon, who played on UCLA's 1995 championship team, led a class action anti-trust lawsuit against the NCAA. The case could change the nature of college sports, and it gets at the question of why people watch in the first place.

We have an update on where O'Bannon's case stands today. Plus, a look at a new challenge to the NCAA, led by former University of Wisconsin player Nigel Hayes.

Music: "Open Run" and "Slow Motion Takeoff." Find us: Twitter/ Facebook.

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