Friday, December 22, 2000
Promoters sue NCAA over basketball games
By William A. Weathers
The Cincinnati Enquirer
Five sports promotion agencies, including one in Cincinnati, sued the NCAA in federal court Thursday, charging that current and proposed NCAA regulations regarding preseason basketball games involving NCAA schools violate antitrust provisions and are designed to eliminate competition.
Attorney Stanley Chesley filed the suit in U.S. District Court in Cincinnati on behalf of the five sports promotion firms, including Worldwide Basketball and Sports Tours Inc., headquartered on West 9th Street in downtown Cincinnati.
The lawsuit alleges that the primary purpose of the NCAA restrictions “is to protect the financial interests of the NCAA and its member organizations from the rigors of a competitive market.” And as a result of the alleged violations of the Sherman Antitrust Act, the plaintiffs “have been injured in their business and property,” the lawsuit states.
The lawsuit asks the court to require that the NCAA remove restrictions that: limit the participation of Division I members in certified pre- and post-season college basketball events; impose financial obligations upon promoters of those events; and impose financial disincentives that will effectively eliminate those events promoted by the plaintiffs.
Worldwide currently promotes the Puerto Rico Shootout and the Puerto Rico Holiday Classic, both NCAA Division I college basketball events.
According to the lawsuit, the NCAA has previously established rules limiting the maximum number of basketball games Division I basketball teams can play annually. Preseason tournaments, many promoted by the plaintiffs, were given exempted status — meaning they did not count against that restricted total.
On Oct. 25, the NCAA management council voted to approve legislation that will essentially eliminate exempted Division I basketball events by allowing schools a maximum of 29 games prior to the post season, the lawsuit states. Under the proposed restriction, the lawsuit states, schools will inevitably schedule 29 regular season games, and use the 29th game for their conference postseason tournament, thereby prohibiting participation in any preseason tournaments promoted by the plaintiffs.
“They (the NCAA) don't have the right, under the law, to put people out of business,” Mr. Chesley said. “As of 2002, these rules will prevent most schools from participating (in preseason tournaments).”
The other plaintiffs in the lawsuit are The Gazelle Group Inc. of Princeton, N.J.; Sports Promotions LLC of Winchester, Va.; Sport Tours International of Milwaukee; and The Black Coaches Association of Somerset, N.J.
NCAA officials could not be reached for comment.
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Promoters sue NCAA over basketball games