S&C Obtains Dismissal of Ivy League Athletic Scholarship Antitrust Lawsuit on Behalf of Harvard University

In an antitrust lawsuit aimed at reversing the Ivy League's seventy-year policy of only offering need-based aid, Sullivan & Cromwell earned a victory for client Harvard University in a lawsuit filed against Harvard, the Ivy League and all of Ivy League's member universities.

Former Brown University basketball players and plaintiffs Tamenang Choh and Grace Kirk alleged that Harvard, the Ivy League, and the seven other universities that comprise the Ivy League violated Section 1 of the Sherman Act due to the Ivy League's policy of awarding only need-based aid. The case was brought in the wake of the Supreme Court's 2021 decision in National Collegiate Athletic Association v. Alston, which held that the NCAA's restrictions on education-related benefits for Division I football and basketball players violated Section 1 of the Sherman Act.

The Ivy League and its member universities moved to dismiss the complaint, as the policies reflect the schools' legitimate purpose of treating all students equally.

In a complete win for the defendants, Judge Alvin Thompson of the United States District Court for the District of Connecticut dismissed the complaint on October 9, noting, "The deficiencies in the Complaint that are the basis for granting the motion to dismiss are substantive in nature, and nothing in the plaintiff's papers suggests that they could amend the Complaint to overcome these substantive deficiencies."

S&C partners Diane McGimsey and Renata Hesse led the effort, advising Harvard University in the case.

Other successful sports litigation matters we have advised on include:

• MLB in the settlement of federal and state litigation stemming from MLB's restructuring of its minor leagues system in 2021. S&C successfully defended MLB's antitrust exemption in the federal district court and before the Second Circuit and then guided MLB to a confidential settlement shortly before the state court trial on contract claims was slated to begin;
• New York Giants and New York Jets in connection with litigation against the New Jersey Sports and Exposition Authority and affiliates of Triple Five Group Worldwide related to the $3 billion American Dream/DreamWorks entertainment and retail development;
• San Francisco Giants in connection with its territorial dispute with the Oakland A's; and
• Syracuse University in connection with its decision to withdraw from the Big East Conference and to join the Atlantic Coast Conference, including negotiations with the Big East concerning the terms of Syracuse's early withdrawal.