Division III Financial Aid Lawsuit: NCAA Seeks Early Dismissal

The NCAA plans to pursue an early dismissal of a federal antitrust lawsuit challenging Division III restrictions on athletics-based financial aid, citing a 2013 court ruling that upheld similar rules.

In a message to its membership Thursday, NCAA chief legal officer Scott Bearby outlined the association’s response to Printz v. NCAA, filed Oct. 23 in the U.S. District Court for the Central District of California. Bearby noted the case has no immediate deadlines.

What the Division III Lawsuit Challenges

Current and former D3 student-athletes filed the lawsuit on Oct. 23, alleging that the NCAA’s restrictions violate federal antitrust law by preventing programs from competing to offer athletics-based financial aid. The plaintiffs argue that the policy suppresses the value of athletes’ contributions to their schools.

Unlike Division I and Division II programs that can award athletic scholarships under NCAA rules, NCAA Bylaw 15.01.3 prohibits Division III institutions from awarding financial aid based on athletics leadership, ability, participation or performance. However, they can offer academic scholarships and need-based aid.

The plaintiffs seek damages for a nationwide class of D3 student-athletes who participated from Oct. 21, 2022, onward, and an injunction covering current and future student-athletes.

With over 420 Division III programs, the case could have broad implications.

NCAA Cites 2013 Court Ruling

An earlier antitrust case, Rock v. NCAA, challenged Division III’s financial aid restrictions. In March 2013, a federal judge in the Southern District of Indiana dismissed the plaintiffs’ challenge, finding the prohibition on athletics-based financial aid procompetitive and lawful as a matter of law.

“We will pursue all options to obtain a similar, early dismissal of the Printz case,” Bearby wrote.

Division III Lawsuit: What Happens Next?

According to Bearby, the NCAA will continue monitoring the litigation and update its membership as developments warrant. He didn’t identify a timeline for the association’s planned motion to dismiss.

The next major update will be the NCAA’s response to the plaintiffs’ allegations.