NCAA Transfer Rule Challenged by States as Anti-Competitive (1)

Seven states are suing the National Collegiate Athletic Association over a rule that restricts student athletes from competing if they transfer between Division I schools.

The states, led by Ohio, say the association’s Transfer Eligibility Rule violates Section 1 of the Sherman Act, which prohibits agreements in restraint of trade. The rule prevents some students who transfer to a new school from playing their sport for a year.

The lawsuit, filed in the US District Court for the Northern District of West Virginia, is the latest suit challenging the athletic association’s rules for limiting competition in college sports.

“The connection ...