The NCAA News - News and Features

March 30, 1998

Federal appeals court rules Title IX applies directly to NCAA

A U.S. appeals court ruled March 16 that Title IX applies directly to the NCAA because the Association receives dues money from institutions that receive federal aid.

Women's rights advocates claimed that the decision could affect NCAA financial aid limits and expenditures on championships.

The Association, however, claimed that the ruling is flawed.

"We are very disappointed in the decision and believe the court has misinterpreted the law," said Elsa Cole, NCAA general counsel. "We are still studying the decision to determine our course of action."

The case itself deals with the denial of an eligibility waiver for a postgraduate student, Renee M. Smith. She played volleyball at St. Bonaventure University in the 1991-92 and 1992-93 seasons. She did not play volleyball in 1993-94 and earned her baccalaureate degree at midterm that year.

She enrolled in a postgraduate program at Hofstra University and in 1995 enrolled in a second postgraduate program at the University of Pittsburgh. St. Bonaventure did not offer either of the postgraduate programs in which Smith enrolled.

She sought a waiver from NCAA Bylaw 14.1.8.2 (now 14.1.7), which states that a postgraduate student-athlete may continue to compete at the institution from which he or she gained the undergraduate degree, provided that the student-athlete is otherwise eligible.

Both Hofstra and Pittsburgh filed for waivers, noting that she was in good academic standing and that she would have eligibility remaining for the 1994-95 and 1995-96 seasons if the waiver was granted.

The NCAA, however, denied the waiver appeal, and in 1996, Smith sued the Association, claiming that the bylaw was an unreasonable restraint of trade in violation of the Sherman Antitrust Act and that the NCAA's refusal to waive the bylaw excluded her from intercollegiate competition based upon her sex in violation of Title IX. Specifically, she claimed that the NCAA granted proportionately fewer waivers in such cases for women than for men.

A federal district court ruled in 1997 that the Sherman Antitrust Act did not apply to the case. It also ruled that Title IX did not apply because the plaintiff had not proved that the NCAA receives federal funds.

The plaintiff attempted to amend her complaint to say that the NCAA receives federal funds because it receives dues from member institutions that receive federal funds. The district court, however, refused to allow the complaint to be amended.

Smith appealed to the U.S. Court of Appeals for the Third Circuit, which ruled that the Sherman Act does not apply. However, it ruled that Title IX does apply if it can be proved that the Association receives dues from members who receive federal funds.

The case was remanded to the lower court, which will now try the case on its merits.

Although it is not clear what effect the appellate court ruling will have, some interpreted it to mean that Title IX could be applied to the NCAA in the same manner as it is its members. If so, they claim that would require equal spending on men's and women's championships and equalizing the financial aid limits for men and women.

Ironically, the NCAA was advised March 10 that an investigation by the Department of Health and Human Services (HHS) had found no wrongdoing on the part of the Association with regard to sponsorship of championships.

In a letter to NCAA Executive Director Cedric W. Dempsey, John W. Halverson, an HHS regional manager of the Office for Civil Rights, wrote: "When OCR looked at championship opportunities for male and female teams for 1996-97 academic year, we found the divisions reflect proportionately the number of women's teams in each sport sponsored by division membership as women's teams. Statistics from 1994-95 and ones available for 1997-98 also indicated this.

"Based on the evidence reviewed during this investigation, OCR has concluded that NCAA is in compliance with the above-referenced acts (Title IX) and regulations for the issue involved."

The Halverson letter claimed that the NCAA is subject to Title IX "because HHS funds were involved." The NCAA disagreed with that position but still cooperated with the investigation.

"It is important to note that the NCAA voluntarily complies with Title IX," Cole said. "We have been strong and consistent supporters of Title IX."

As the Halverson letter noted, NCAA championships currently reflect sports sponsorship within the membership. As of the last available report, 38.2 percent of all participants in NCAA sports were female (see chart on page 2).

The ruling appears to place an extremely broad definition on what constitutes receipt of federal funds, Cole said. At a minimum, it would make any educational organization that receives dues from a university subject to federal antidiscrimination laws.