Supreme Court rules on college athlete compensation

The Supreme Court ruled unanimously in favor of the athletes in a challenge to the NCAA.
11:36 | 06/21/21

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Transcript for Supreme Court rules on college athlete compensation
Hi everyone I'm Diana say they were coming on the air with breaking news and Supreme Court has just issued a ruling on the NCAA and compensation for college athletes. The High Court has ruled the NCAA was violating antitrust law by capping would student athletes can receive by way of education related gifts and benefits. The NCAA in its biggest athletic conference is one of the justices to overturn overturn a ruling abolishing the limits. Saying it would erode the amateur nation nature rather a college sports and open the door to pay for play. But athletes argued the rules unfairly suppressed their ability to be rewarded for valuable skills and abilities let's go to senior Washington reporter. Devin Dwyer a little more on the decision DeVon as a new ones here because this isn't. About just paying athletes out right it's about educational get sent can you just explain a little bit more. About what this ruling means. Yet then and this is this case is significant in that it's a sign that the dam. Has broken a little bit at least legally when it comes to Cain. Are giving compensation to the college athletes who how long have complained that even coaches. Our commissioners have leaks have been making millions of dollars meanwhile they have been limited. Only to their tuition room and board and a very limited modest. 5000 dollar cap on things like computers paid internships study abroad musical instruments. The Supreme Court today and lifted that cap said that cap on those education related expenses. Violated antitrust laws. How but the court. Didn't go further they said that the admin did existing rules banning compensation salaries for college athletes that can remain in place at least for now. So a big blow to the NCAA they said this would be slippery slope. I've been a victory for these college athletes looking for just a little bit more compensation for all their hard work there on the Plainfield Diane. Analyst frank your national correspondent Terry Moran a little more on how this Supreme Court reached this decision what are the justices saying here Terry. Well the justices did not take on the big question which a lot of people are armed are arguing about should college athletes just be paid a salary. They work incredibly hard they make people lots of money for a lot of colleges and universities shouldn't they get some salary some some amount of money. The court didn't reach that because they were only addressing a lower court opinion. College athletes had sued the NCAA saying he's limits on education related expenses the DeVon was just talking about art fair. And that's as far as that went but there's it was a unanimous Supreme Court that ruled on this but in a concurring opinion justice Brent Cavanaugh. Who coaches the high school basketball and you tried out for the basketball team at Yale didn't make it. Has pretty strong feelings on this he wrote a style stinging dissent as it to your bring the case dissent. Which is bring gore might be interested in given what happened here in which he said. Today that the NCAA had justified this limit on education relation that related expenses saying fans won't like it. If we eat up pay our amateur athletes. Any more than the minimum necessary to ensure their education. And is it nowhere else in American business. Can a company get away with agreeing not to pay their workers at fair market rate. I'm the theory that their product as defined. Might not paying their workers a fair market rate. The NCAA is not above the law this is a blow to the NCAA but is not the big question but it's pretty clear that this court thinks then that the claim of amateurism is essential. To the functioning of NCAA other college athletics. Just does not hold water for this one only goes to education related expenses. And cherry and you said that this is the unanimous decision what kind of impact do you think that has. On as a way the American public views the court particular at a time when politics is so divided. That's a great course. Because we seen a lot of that the justice is come together. This charm on unanimous or very large majorities in the unexpected cases you know we saw that in the obamacare case the Affordable Care Act guess what Clarence Thomas. I joined with the liberals as being two of the trump appointees. Brett Cavanaugh on any coney Barrett to uphold the Affordable Care Act in that case. This is an accord it it feels like certainly at this point in the term. Where many of the justice are looking for ways to come together sticking to the finer points of the law rather than reaching for big opinions and staying out. Of politics and in this one you get the same sense as well there were able to come together. At this limited that opinion they didn't go beyond the lower court of opinion a lower court ruling that college athletes when it comes to education related expenses ought to be limited because the NCAA claims. That fans don't want these athletes paid for their work. All right and I want to go to ABC contributor L degree Anders and I'll DNA recovered spores for a long time here this decision may be limited. A but it could have a huge impact what is the practical implication here for the college athlete. I think they're above the important thing to remember exact. While we sanity NCAA. General in terms of sports were pretty talk about two roommates or sort of huge mortgage Earth's orbit basketball. Should be birds can support that are dominated part players of color. We're all of altered power. We'll buy into Arabic conversation. About spared him. Federer broke antitrust law would Alter technology. Director appeared to be different standards for their sportsman's world caved to quite. Palme I don't corporate tenant that their bid at high number of international curious players who beat European countries are allowed to help college scholarships or you're going to beat you repeat. Previous professional experience. The NCAA Gordon Deal over university expert tenants because both are Monday July oats. So it just lippi abruptly overarching. Conversation turned out of food impaired. Players are impart color step in but it's also about how int he doubly pigeons users. Our went to import these rules principled support interoperability. Which all else. Just under her personal invective ever to reform that could keep hiding behind these movies are yet to be quite obvious refutes. So where does this concept of amateurism come from it and why does the NCAA and news conferences argue that it's so important to college sports. What the answer could double or we'll tell you that it states for the education of athletes that they shouldn't receive compensation but that's not really where it originated if you look. A big part of the M amateurism if those in. College sports was because to keep the working classes sort out of this that that that college sports were for college men and college men. Didn't accept money for their for there was more noble to be amateur somehow. And clearly that's that's gone out dough that the window here because. College coaches are among the high are the highest paid employer employees in 39 of the fifty states. And for so many of these college athletes. They schools insist on them putting the sport to had to have their education. The graduation rates have been scandal in so many colleges and universities for so long they use the labor of these young men figure then they just. Yeah tossed some bowed out without any scholarship for education at all. And that ethos of amateurism was really basting in a gentleman's understanding. Of what constituted an athlete. And and really exists nowhere else in the world right now and the notion that this was for athletics. Has been pointed out as LG just point that's kind of a sham in many ways since an antiquated notion. They are there other Clinton is that fans will reject college sports if they pay their players and and that is one that Supreme Court will take up and I'm sure at some point. And DeVon from a school perspective how does this decision impacts how schools go about recruiting student athletes. Yeah a lot of small schools and year colleges and universities Diane actually. And oppose the listing of this cap because they were afraid that there was going to be an arms race minority is an arms race in college sports for the best athletes. Who can get lured to certain schools based on how much the school can pay your provide in some of these perks. Costs of this perhaps enhances that competition for some of the best athletes. Good but is turner was alluding to an als he certainly mentioning that trade is already moving out of the station on this issue of compensation. For student athletes we know that this summer. In six states around the country bills are already under way in those states to require colleges and universities California among them 20 mandate that students be allowed to profit off their image name and likeness get endorsement deals with Nike in the white. It did during their time. That's being mandated into law in some states and so that train is moving the NCAA. I have certainly seen that movement acknowledge that movement in some cases been supportive. Modestly admitted the name image like a saying. But Scherer this is a much trickier situation in and no doubt a disappointment. To the league and two a lot of a lot of smaller schools that could face a harder time now. Getting some of these athletes to come play. LLC as DeVon said the train has left a station here's so what's next. For college athletes with this decision now down from the Supreme Court and and that is its impact professional leagues going forward. I think hope of sorts in the league all they are also very concerned about problems recurring Puerto honorable org or secret anti. Actor recruit bottler well. Current into the NBA which has been one in don't know which beat requires high school students have been one year university. Or out of school. Critical parts me before they're allowed to be into the NBA draft and also happy GB or minor league start from high school players do not want to read that one year. So I suspect that Arab NCAA. Seized writes you hold or so we're work. Back the NBA you protect record recorded where they're pretty are due to accomplish. Its record to support. It. Are keeping the white in broad rule and played sports. Or it could be right got rule. RO better group says he's going to take all the lawyer school board of legal body repair its image clarity in double A get aids. Being able to control every being in court immediate super personal commitment we're here. Look different but I am because Easter required. 53 year gap out of high school about eight. Wright who started all. G league if you will or minor league could come. All record go to all over top talent that you see when colored sport today at essentially. Empty don't they would do what it war. We took only what you heard what rookie to make my ideal period average but it won't be getting boat ripped player Erica airport. LV granderson Devin Dwyer Terry Moran thank you all once again a Supreme Court. Has not ruled that the NCAA can not Catholic student athletes receive by way of educational gifts. The court has yet to decide anything about salaries. For players bat is for another case. We will have additional updates coming up in just a few minutes at 11 AM eastern and again at 3 PM eastern. On the breakdown thank you all for joining us sign Diane Macedo. Every rest day.

This transcript has been automatically generated and may not be 100% accurate.

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