ncaa board regents univ argued march decided june petitioner national collegiate athletic association ncaa adopted plan televising college football games member institutions seasons plan recites intended reduce adverse effect live television upon football game attendance plan limits total amount televised intercollegiate football games number games one college may televise member ncaa permitted make sale television rights except accordance plan ncaa separate agreements two carrying networks american broadcasting columbia broadcasting system granting network right telecast live exposures described plan network agreed pay specified minimum aggregate compensation participating ncaa members authorized negotiate directly members right televise games respondent universities addition ncaa members members college football association cfa originally organized promote interests major colleges within ncaa structure whose members eventually claimed greater voice formulation football television policy ncaa cfa accordingly negotiated contract national broadcasting allowed liberal number television appearances college increased revenues realized cfa members response ncaa announced take disciplinary action cfa member complied contract respondents commenced action federal district extended trial held controls exercised ncaa televising college football games violated sherman act accordingly granted injunctive relief found competition relevant market defined live college football television restrained three ways ncaa fixed price particular telecasts exclusive network contracts tantamount group boycott potential broadcasters threat sanctions members constituted threatened boycott potential competitors plan placed artificial limit production televised college football appeals agreed sherman act violated holding ncaa television plan constituted illegal per se price fixing even per se illegal anticompetitive limitation price output offset procompetitive justifications sufficient save plan even totality circumstances examined held ncaa television plan violates sherman act pp plan constitutes horizontal price fixing output limitation restraints ordinarily held illegal per se inappropriate apply per se rule case involves industry horizontal restraints competition essential product available ncaa members market competition contests competing institutions thus despite fact restraints ability ncaa members compete terms price output involved fair evaluation competitive character requires consideration rule reason ncaa justifications restraints analysis rule reason change ultimate focus inquiry whether challenged restraints enhance competition pp ncaa television plan face constitutes restraint upon operation free market district findings establish plan operated raise price reduce output unresponsive consumer preference rule reason hallmarks anticompetitive behavior place upon ncaa heavy burden establishing affirmative defense competitively justifies apparent deviation operations free market ncaa argument television plan significant anticompetitive effect since market power must rejected matter law absence proof market power justify naked restriction price output factual matter evident record ncaa possess market power pp record support ncaa proffered justification television plan constitutes cooperative joint venture assists marketing broadcast rights hence procompetitive district contrary findings undermine justification pp contrary ncaa assertion television plan protect live attendance since plan games televised hours college football games played moreover seeking insulate live ticket sales full spectrum competition assumption product insufficiently attractive draw live attendance faced competition televised games ncaa forwards justification inconsistent sherman act basic policy rule reason support defense based assumption competition unreasonable national society professional engineers pp interest maintaining competitive balance among amateur athletic teams ncaa asserts justification television plan related neutral standard readily identifiable group competitors television plan even arguably tailored serve interest regulate amount money college may spend football program way colleges may use football program revenues simply imposes restriction one source revenue important colleges others evidence restriction produces greater measure equality throughout ncaa restriction alumni donations tuition rates activity moreover district finding many games televised free market ncaa plan compelling demonstration plan controls serve legitimate procompetitive purpose pp stevens delivered opinion burger brennan marshall blackmun powell joined white filed dissenting opinion rehnquist joined post frank easterbrook argued cause petitioner briefs george gangwere james fellers andy coats argued cause respondents brief clyde muchmore erwin griswold ralph beaird james ponsoldt solicitor general lee argued cause amicus curiae urging affirmance brief assistant attorney general mcgrath deputy solicitor general wallace deputy assistant attorney general ginsberg jerrold ganzfried barry grossman andrea limmer gerald caplan alexander halpern filed brief national federation state high school associations amicus curiae urging reversal forrest hainline iii laurent scharff filed brief association independent television stations amicus curiae urging affirmance justice stevens delivered opinion university oklahoma university georgia contend national collegiate athletic association unreasonably restrained trade televising college football games extended trial district found ncaa violated sherman act granted injunctive relief supp wd appeals agreed statute violated modified remedy respects granted certiorari affirm ncaa since inception ncaa played important role regulation amateur collegiate sports adopted promulgated playing rules standards amateurism standards academic eligibility regulations concerning recruitment athletes rules governing size athletic squads coaching staffs sports baseball swimming basketball wrestling track sponsored conducted national tournaments done sport football however exception football ncaa undertaken regulation televising athletic events ncaa approximately voting members regular members classified separate divisions reflect differences size scope athletic programs division includes colleges major athletic programs group play intercollegiate football divisions ii iii include approximately colleges less extensive athletic programs division subdivided divisions football years ago five major conferences together major independent institutions organized college football association cfa original purpose cfa promote interests major schools within ncaa structure universities oklahoma georgia respondents members cfa history ncaa television plan university pennsylvania televised one home games season pennsylvania home games televised app beginning relationship television college football january television committee appointed preceding year delivered report ncaa annual convention dallas based preliminary surveys committee concluded television adverse effect college football attendance unless brought control threatens seriously harm nation overall athletic physical system report emphasized television problem truly national one requires collective action colleges result ncaa decided retain national opinion research center norc study impact television live attendance declare moratorium televising football games television committee appointed implement decision develop ncaa television plan committee plan provided one game week telecast area total blackout saturdays season team appear television twice season plan also provided norc conduct systematic study effects program attendance plan received virtually unanimous support ncaa membership university pennsylvania challenged pennsylvania announced televise home games council ncaa thereafter declared pennsylvania member bad standing four institutions scheduled play pennsylvania refused pennsylvania reconsidered decision abided ncaa plan succeeding five seasons studies made tended indicate television adverse effect attendance college football games years ncaa continued exercise complete control number games televised ncaa television committee followed essentially procedure developing television plans first circulate questionnaire membership use responses basis formulating plan ensuing season plan submitted vote means mail referendum approved plan formed basis ncaa negotiations networks throughout period plans retained essential purposes original plan see contracts either terms ncaa adopted principles negotiation future discontinued practice submitting plan membership approval ncaa also entered first contract granting exclusive rights american broadcasting abc seasons abc held exclusive rights network telecasts ncaa football games since current plan plan adopted seasons issue case plan like predecessors recites intended reduce insofar possible adverse effects live television upon football game attendance provides forms television football games ncaa member institutions plan control periods shall accordance plan app plan recites television committee awarded rights negotiate contract telecasting college football games members ncaa two carrying networks addition principal award rights carrying networks plan also describes rights supplementary series awarded seasons well procedure permitting specific exception telecasts separate agreements carrying networks abc columbia broadcasting system cbs ncaa granted right telecast live exposures described plan accordance ground rules set forth therein networks agreed pay specified minimum aggregate compensation participating ncaa member institutions period amount totaled essence agreement authorized network negotiate directly member schools right televise games agreement describe method computing compensation game practice developed years district found followed current agreement involved setting recommended fee representative ncaa different types telecasts national telecasts valuable regional telecasts less valuable division ii division iii games commanding still lower price aggregate payments presumably equals total minimum aggregate compensation set forth basic agreement except differences payment national regional telecasts respect division ii division iii games amount team receives change size viewing audience number markets game telecast particular characteristic game participating teams instead ground rules provide carrying networks make alternate selections games wish televise thereby obtain exclusive right submit bid essentially fixed price institutions involved see plan also contains appearance requirements appearance limitations pertain periods plan effect basic requirement imposed two networks must schedule appearances least different member institutions period appearance limitations member institution eligible appear television total six times four times nationally appearances divided equally two carrying networks see number exposures specified contracts also sets absolute maximum number games broadcast thus although current plan elaborate predecessors retains essential features limits total amount televised intercollegiate football number games one team may televise member permitted make sale television rights except accordance basic plan background controversy beginning cfa members began advocate colleges major football programs greater voice formulation football television policy ncaa cfa therefore investigated possibility negotiating television agreement developed independent plan obtained contract offer national broadcasting nbc contract signed august allowed liberal number appearances institution increased overall revenues realized cfa members see response ncaa publicly announced take disciplinary action cfa member complied contract ncaa made clear sanctions limited football programs cfa members apply sports well september respondents commenced action district western district oklahoma obtained preliminary injunction preventing ncaa initiating disciplinary proceedings otherwise interfering cfa efforts perform agreement nbc notwithstanding entry injunction cfa members unwilling commit new contractual arrangement nbc face theatened sanctions therefore agreement never consummated see decision district full trial district held controls exercised ncaa televising college football games violated sherman act district defined relevant market live college football television found alternative programming significantly different lesser audience appeal district concluded ncaa controls college football classic cartel almost absolute control supply college football made available networks television advertisers ultimately viewing public like cartels ncaa members sought achieved price product instances artificially high ncaa cartel imposes production limits members maintains mechanisms punishing cartel members seek stray production quotas cartel established uniform price products member producers regard differing quality products consumer demand various products district ncaa offered two principal justifications television policies protected gate attendance members tended preserve competitive balance among football programs various schools district rejected first justification evidence support claim college football television adversely affected gate attendance respect competitive balance argument district found evidence failed show ncaa regulations matters recruitment standards preserving amateurism sufficient maintain appropriate balance decision appeals appeals held ncaa television plan constituted illegal per se price fixing rejected three arguments advanced ncaa establish procompetitive character plan first rejected argument television plan promoted live attendance noting since plan involved concomitant reduction viewership plan result net increase output hence procompetitive second appeals rejected illegitimate ncaa purpose promoting athletically balanced competition held consideration amounted argument competition destroy market position inconsistent policy sherman act moreover assuming arguendo justification legitimate agreed district finding contribution plan made athletic balance achieved less restrictive means third appeals refused view ncaa plan competitively justified need compete effectively types television programming since entirely eliminated competition producers football hence illegal per se finally appeals concluded even television plan per se illegal anticompetitive limitation price output offset procompetitive justification sufficient save plan even totality circumstances examined case remanded district appropriate modification injunctive decree ii doubt challenged practices ncaa constitute restraint trade sense limit members freedom negotiate enter television contracts sense however every contract restraint trade repeatedly recognized sherman act intended prohibit unreasonable restraints trade also undeniable practices share characteristics restraints previously held unreasonable ncaa association schools compete attract television revenues mention fans athletes district found policies ncaa respect television rights ultimately controlled vote member institutions participating association prevents member institutions competing basis price kind television rights offered broadcasters ncaa member institutions created horizontal restraint agreement among competitors way compete one another restraint type often held unreasonable matter law places ceiling number games member institutions may televise horizontal agreement places artificial limit quantity televised football available broadcasters consumers restraining quantity television rights available sale challenged practices create limitation output cases held limitations unreasonable restraints trade moreover district found minimum aggregate price fact operates preclude price negotiation broadcasters institutions thereby constituting horizontal price fixing perhaps paradigm unreasonable restraint trade horizontal price fixing output limitation ordinarily condemned matter law illegal per se approach probability practices anticompetitive high per se rule applied practice facially appears one always almost always tend restrict competition decrease output broadcast music columbia broadcasting system circumstances restraint presumed unreasonable without inquiry particular market context found nevertheless decided inappropriate apply per se rule case decision based lack judicial experience type arrangement fact ncaa organized nonprofit entity respect ncaa historic role preservation encouragement intercollegiate amateur athletics rather critical case involves industry horizontal restraints competition essential product available judge bork noted ome activities carried jointly perhaps leading example league sports league professional lacrosse teams formed pointless declare cooperation illegal ground professional lacrosse teams bork antitrust paradox ncaa member institutions market case competition contests competing institutions course completely ineffective rules competitors agreed create define competition marketed myriad rules affecting matters size field number players team extent physical violence encouraged proscribed must agreed upon restrain manner institutions compete moreover ncaa seeks market particular brand football college football identification product academic tradition differentiates college football makes popular professional sports might otherwise comparable example minor league baseball order preserve character quality product athletes must paid must required attend class like integrity product preserved except mutual agreement institution adopted restrictions unilaterally effectiveness competitor playing field might soon destroyed thus ncaa plays vital role enabling college football preserve character result enables product marketed might otherwise unavailable performing role actions widen consumer choice choices available sports fans also available athletes hence viewed procompetitive broadcast music squarely holds joint selling arrangement may efficient increase sellers aggregate output thus procompetitive see similarly indicated continental gte sylvania restraint limited aspect market may actually enhance marketwide competition respondents concede great majority ncaa regulations enhance competition among member institutions thus despite fact case involves restraints ability member institutions compete terms price output fair evaluation competitive character requires consideration ncaa justifications restraints analysis case rule reason course change ultimate focus inquiry per se rules rule reason employed form judgment competitive significance restraint national society professional engineers conclusion restraint trade unreasonable may based either nature character contracts surrounding circumstances giving rise inference presumption intended restrain trade enhance prices either branch test inquiry confined consideration impact competitive conditions footnotes omitted iii restrains price output ncaa television plan significant potential anticompetitive effects findings district indicate potential realized district found member institutions free sell television rights many games shown television ncaa output restriction effect raising price networks pay television rights moreover found fixing price television rights games ncaa creates price structure unresponsive viewer demand unrelated prices prevail competitive market course since practical matter member institutions need ncaa approval members real choice adhere ncaa television controls anticompetitive consequences arrangement apparent individual competitors lose freedom compete price higher output lower otherwise unresponsive consumer preference latter point perhaps significant since congress designed sherman act consumer welfare prescription reiter sonotone restraint effect reducing importance consumer preference setting price output consistent fundamental goal antitrust law restrictions price output paradigmatic examples restraints trade sherman act intended prohibit see standard oil time television plan eliminates competitors market since broadcasters able bid television rights covering entire ncaa compete thus district found many telecasts occur competitive market foreclosed ncaa plan petitioner argues however television plan significant anticompetitive effect since record indicates market power ability alter interaction supply demand market must reject argument two reasons one legal one factual matter law absence proof market power justify naked restriction price output contrary agreement compete terms price output elaborate industry analysis required demonstrate anticompetitive character agreement professional engineers petitioner quarrel district finding price output responsive demand thus plan inconsistent sherman act command price supply responsive consumer preference never required proof market power case naked restraint price output requires competitive justification even absence detailed market analysis factual matter evident petitioner possess market power district employed correct test determining whether college football broadcasts constitute separate market whether products reasonably substitutable televised ncaa football games petitioner argument obtain supracompetitive prices broadcasters since advertisers hence broadcasters switch college football types programming simply ignores findings district found intercollegiate football telecasts generate audience uniquely attractive advertisers competitors unable offer programming attract similar audience findings amply support conclusion ncaa possesses market power indeed district subsidiary finding advertisers pay premium price per viewer reach audiences watching college football demographic characteristics vivid evidence uniqueness product moreover district market analysis firmly supported decision international boxing club new york championship boxing events uniquely attractive fans hence constitute market separate nonchampionship events see thus respondents demonstrated separate market telecasts college football rest generic qualities differentiating viewers publishing inexorably follows college football broadcasts defined separate market convinced ncaa complete control broadcasts provides solid basis district conclusion ncaa possesses market power respect broadcasts product controlled one interest without substitutes available market monopoly power du pont de nemours thus ncaa television plan face constitutes restraint upon operation free market findings district establish operated raise prices reduce output rule reason hallmarks anticompetitive behavior place upon petitioner heavy burden establishing affirmative defense competitively justifies apparent deviation operations free market see professional engineers turn ncaa proffered justifications iv relying broadcast music petitioner argues television plan constitutes cooperative joint venture assists marketing broadcast rights hence procompetitive joint ventures immunity antitrust laws broadcast music indicates joint selling arrangement may mak possible new product reaping otherwise unattainable efficiencies arizona maricopa county medical society powell dissenting omitted essential contribution made ncaa arrangement define number games may televised establish price exposure define basic terms contract network home team ncaa however act selling agent school conference schools selection individual games negotiation particular agreements matters left networks individual schools thus effect network plan eliminate individual sales broadcasts since still occur albeit subject fixed prices output limitations unlike broadcast music blanket license covering broadcast rights large number individual compositions rights still sold individual basis noncompetitive market district find ncaa television plan produced procompetitive efficiencies enhanced competitiveness college football television rights contrary concluded ncaa football marketed effectively without television plan therefore predicate findings petitioner efficiency justification indeed petitioner argument refuted district finding concerning price output ncaa television plan produced procompetitive efficiencies plan increase output reduce price televised games district contrary findings accordingly undermine petitioner position light findings said agreement price necessary market product broadcast music broadcast music availability package product individual offer enhanced total volume music sold unlike case limit kind placed volume might sold entire market individual remained free sell music without restraint production limited enhanced individual school free televise games without restraint ncaa efficiency justification supported record neither ncaa television plan necessary enable ncaa penetrate market attractive package sale since broadcasting rights college football constitute unique product ready substitute need collective action order enable product compete nonexistent competitors borne district finding ncaa television plan reduces volume television rights sold throughout history regulation intercollegiate football telecasts ncaa indicated concern protecting live attendance concern noted protecting live attendance games shown television type interest issue case rather concern fan interest televised game may adversely affect ticket sales games appear television although norc studies provided support thesis live attendance suffer unlimited television permitted district found evidence support theory today market moreover district found television plan evolved manner inconsistent original design protect gate attendance current plan games shown television hours college football games played plan simply protect live attendance ensuring games shown television time live events however fundamental reason rejecting defense ncaa argument television plan necessary protect live attendance based desire maintain integrity college football distinct attractive product rather fear product prove sufficiently attractive draw live attendance faced competition televised games bottom ncaa position ticket sales college games unable compete free market television plan protects ticket sales limiting output monopolist increases revenues reducing output seeking insulate live ticket sales full spectrum competition assumption product insufficiently attractive consumers petitioner forwards justification inconsistent basic policy sherman act rule reason support defense based assumption competition unreasonable professional engineers vi petitioner argues interest maintaining competitive balance among amateur athletic teams legitimate important justifies regulations challenged case agree first part argument second decision apply per se rule case rests large part recognition certain degree cooperation necessary type competition petitioner member institutions seek market preserved reasonable assume regulatory controls ncaa justifiable means fostering competition among amateur athletic teams therefore procompetitive enhance public interest intercollegiate athletics specific restraints football telecasts challenged case however fit mold rules defining conditions contest eligibility participants manner members joint enterprise shall share responsibilities benefits total venture ncaa claim television plan equalized intended equalize competition within one league plan nationwide scope single league tournament college football teams compete evidence intent equalize strength teams division division ii division iii even colorable basis giving colleges football program voice management revenues generated football programs schools interest maintaining competitive balance asserted ncaa justification regulating television intercollegiate football related neutral standard readily identifiable group competitors television plan even arguably tailored serve interest regulate amount money college may spend football program way colleges may use revenues generated football programs whether derived sale television rights sale tickets sale concessions program advertising plan simply imposes restriction one source revenue important colleges others evidence restriction produces greater measure equality throughout ncaa restriction alumni donations tuition rates activity time district found ncaa imposes variety restrictions designed preserve amateurism much better tailored goal competitive balance television plan clearly sufficient preserve competitive balance extent within ncaa power much speculation supported district findings score ncaa sport employs similar plan particular found closely analogous sport college basketball competitive balance maintained without resort restrictive television plan perhaps important reason rejecting argument interest competitive balance served television plan district unambiguous finding many games televised free market ncaa plan hypothesis legitimates maintenance competitive balance procompetitive justification rule reason equal competition maximize consumer demand product finding consumption materially increase controls removed compelling demonstration fact serve legitimate purpose vii ncaa plays critical role maintenance revered tradition amateurism college sports question needs ample latitude play role preservation higher education adds richness diversity intercollegiate athletics entirely consistent goals sherman act consistent sherman act role ncaa must preserve tradition might otherwise die rules restrict output hardly consistent role today hold record supports district conclusion curtailing output blunting ability member institutions respond consumer preference ncaa restricted rather enhanced place intercollegiate athletics nation life accordingly judgment appeals affirmed footnotes every contract combination form trust otherwise conspiracy restraint trade commerce among several foreign nations declared illegal stat amended presumably however sells television rights events ncaa conducts according ncaa football television committee briefing book far known six television sets philadelphia tuned game app television committee briefing book elaborates ncaa television committee initiated plan controlling televising college football games plans remained remarkably similar essential features past years following primary objectives purposes reduce insofar possible adverse effects live television upon football game attendance turn upon athletic education programs dependent upon football attendance spread television among many ncaa member colleges possible provide football television public extent compatible two objectives ibid respondents sought obtained injunctive relief future violations district consider previous ncaa television plans except extent shed light purpose effect current plan purposes plan shall reduce insofar possible adverse effects live television upon football game attendance turn upon athletic related educational programs dependent upon proceeds therefrom spread football television participation among many colleges practicable reflect properly image universities educational institutions promote college football use television advance overall interests intercollegiate athletics provide college football television public extent compatible objectives parenthetical omitted supplementary series described separate article plan consist exposures first two years exposures third fourth years plan exposures scheduled saturday evenings times conflict principal football series scheduled saturday afternoons exception telecast permitted home team market games sold visiting team market games played miles visiting team campus cases broadcast shown area another college football game played also division ii division iii institutions allowed complete freedom televise games except games may appear network five stations without permission ncaa addition contracts carrying networks ncaa contracted turner broadcasting system tbs exclusive right cablecast ncaa football games minimum aggregate fee initial period tbs contract football television committee briefing book recites fee paid national games telecast abc regular fall season paid regional telecasts app report recites division members received football television revenue percent total division ii share percent division iii received percent ncaa percent district explained agreement eliminates competition broadcasting rights first networks intention engage bidding second network holding first choice given date made choice agreed rights fee game two teams involved network monopoly position schools threaten sell broadcast rights network sell nbc without committing violation ncaa rules sell network first choice particular date violation ncaa rules network violation agreement ncaa thus ncaa creates single eligible buyer product two schools selected network first choice free market competition thus destroyed new plan district held ncaa monopolized relevant market violation sherman act see appeals found unnecessary reach issue appeals rejected district boycott holding since broadcasters free negotiate contract carrying networks threat sanctions members violating ncaa rules considered boycott rules otherwise valid appeals well district petitioner argued respondents suffered injury type antitrust laws designed prevent relying brunswick pueblo courts rejected position petitioner seek review question brief petitioner appeals rejected petitioner position set aside many district findings clearly erroneous accord usual practice must accord great weight finding fact made district approved appeals see rogers lodge event petitioner ask us set aside findings district rather argues district appeals erred matter law brief petitioner judge barrett dissented ground ncaa television plan primary purpose anticompetitive rather designed purposes objectives ncaa maintain intercollegiate football amateur sport adjunct academic endeavors institutions one key purposes insure student athlete fully integrated academic endeavors regarded television restraints fully justified necessary maintain intercollegiate football amateur competition added restraints upon oklahoma georgia colleges universities excellent football programs insure confine programs within principles amateurism intercollegiate athletics supplement rather inhibit academic achievement see arizona maricopa county medical society national society professional engineers chicago board trade see arizona maricopa county medical society national society professional engineers topco associates see also sealy marketing association controlled competing distributors horizontal combination see generally blecher daniels professional sports single entity defense section one sherman act whittier rev see topco associates sealy supra american linseed oil american column lumber see arizona maricopa county medical society catalano target sales per curiam joseph seagram sons oil trenton potteries judicial inexperience particular arrangement counsels extending reach per se rules see broadcast music topco associates white motor likelihood horizontal price output restrictions anticompetitive generally sufficient justify application per se rule without inquiry special characteristics particular industry see arizona maricopa county medical society national society professional engineers doubt sweeping language applies nonprofit entities goldfarb virginia state bar past imposed antitrust liability nonprofit entities engaged anticompetitive conduct american society mechanical engineers hydrolevel moreover economic significance ncaa nonprofit character questionable best since district found ncaa member institutions fact organized maximize revenues see unclear petitioner less likely restrict output order raise revenues realized competitive market entity petitioner rely nonprofit character basis reversal tr oral arg guardian important american tradition ncaa motives must accorded respectful presumption validity nevertheless well settled good motives validate otherwise anticompetitive practice see griffith associated press chicago board trade standard sanitary manufacturing freight see justice ncaa supp jones ncaa supp mass college athletic placement service ncaa trade cases nj aff see also brenner world boxing council neeld national hockey league smith pro football app hatley american quarter horse mackey national football league cert dism bridge corp america american contract bridge league cert denied gunter harz sports tennis supp neb aff cooney american horse shows supp sdny los angeles memorial coliseum national football league supp cd cal preliminary injunction entered supp rev grounds kupec atlantic coast conference supp mdnc closius behest nonlabor groups revised prognosis maturing sports industry boston college rev kurlantzick thoughts professional sports antitrust law los angeles memorial coliseum national football league rev note antitrust nonprofit entities harv rev see generally hennessey ncaa association intercollegiate athletics women ncaa supp dc warner amex cable communications american broadcasting supp sd ohio board regents ncaa note tackling intercollegiate athletics antitrust analysis yale see jefferson parish hospital dist hyde arizona maricopa county medical society continental gte sylvania indeed often bright line separating per se rule reason analysis per se rules may require considerable inquiry market conditions evidence justifies presumption anticompetitive conduct example spoken per se rule tying arrangements also recognized tying may procompetitive justifications make inappropriate condemn without considerable market analysis see jefferson parish hospital dist hyde sherman act designed comprehensive charter economic liberty aimed preserving free unfettered competition rule trade rests premise unrestrained interaction competitive forces yield best allocation economic resources lowest prices highest quality greatest material progress time providing environment conducive preservation democratic political social institutions even premise open question policy unequivocally laid act competition end prohibits every contract combination conspiracy restraint trade commerce among several northern pacific connection without significance congress felt need grant professional sports exemption antitrust laws joint marketing television rights see legislative history exemption demonstrates congress recognition agreements among league members sell television rights cooperative fashion run afoul sherman act particular reflects awareness decision national football league supp ed held agreement among teams national football league team permit stations telecast games within miles home city another team day team playing home televising game use station within miles home city violated sherman act see sess cong rec remarks celler remarks mcculloch telecasting professional sports contests hearings antitrust subcommittee house committee judiciary statement chairman celler statement mcculloch statement pete rozelle letter assistant attorney general loevinger clear evidence ncaa controls many college football games televised particularly true local level ncaa controls local stations often unable televise games like even games televised network level circumstances allow exception telecasts arise infrequently many schools evidence clear local broadcasts college football occur far frequently ncaa controls surprising result indeed horizontal agreement limit availability games potential broadcasters essence ncaa agreements networks evidence establishes fact networks actually paying large fees ncaa agrees limit production ncaa agree limit production networks pay large fee ncaa limits production networks need fear broadcasts compete college football telecasts either networks various local stations therefore concludes membership ncaa agreed limit production level far occur free market situation turning price paid product clear ncaa controls utterly destroy free market competition ncaa commandeered rights members sold rights sum certain fixed minimum maximum actual price paid schools appearing abc cbs tbs ncaa created mechanism produces uniform price national telecast uniform price regional telecast ncaa controls price paid right televise particular game responsive neither relative quality teams playing game viewer preference competitive market college fielding football team free sell right televise games whatever price get prices vary games games prominent schools drawing larger price games less prominent schools games prominent schools draw larger audience games advertisers pay higher rates commercial time larger audience telecaster willing pay larger rights fees due increased prices paid advertisers thus price telecaster pay particular game dependent expected size viewing audience clearly ncaa controls grossly distort prices actually paid individual game expected free market since district found ncaa approval necessary institution wishes compete intercollegiate sports ncaa potent tool disposal restraining institutions require approval see silver new york stock exchange associated press see fashion originators guild america ftc standard sanitary manufacturing montague lowry case rule violated price restraint tends provide economic rewards practitioners regardless skill experience training willingness employ innovative difficult procedures arizona maricopa county medical society district provided vivid example system practice clear example failure rights fees paid respond market forces occurred fall one weekend year oklahoma scheduled play football game university southern california oklahoma usc long outstanding football programs indeed teams ranked among top five teams country wire service polls abc chose televise game along several others regional basis game two schools football programs citadel appalachian state carried four abc local affiliated stations contest carried stations yet incredibly four teams received exactly amount money right televise games district observed perhaps pernicious aspect controls market responsive viewer preference every witness testified matter confirmed consumers viewers college football television receive absolutely benefit controls many games large viewer demand kept viewers many games little demand nonetheless televised even context professional football congress willing pass limited antitrust exemption see supra concerned ensuring telecasts subject output limitations gary yesterday opportunity watching three different games three different games three different channels bill prevent broadcasting three different games one time permit league enter contract one game permitted celler bill prevent gentleman saw yesterday matter fact antitrust exemption provided bill shall apply package contract prohibits person league television rights sold transferred televising game within area except home area member club day club playing home game gary avid sports fan follow football baseball basketball track much interested sports also interested people able see television games played interested television audience want know going prohibited seeing games might otherwise telecast celler assure gentleman virginia need fears score cong rec impact competitors thus analogous effect block booking motion picture industry concluded violated sherman act first place eliminate possibility bidding films theater theater way eliminate opportunity small competitor obtain choice first runs put premium size circuit paramount pictures one respondents economists illustrated point opinion free market operated market intercollegiate television football substantially regional even local games televised currently take specific example home state indiana ball state university recently division institution although division institution terms intercollegiate football ball state plays indiana state hotly contested game intrastate sense prime example type game probably televised example ball state playing indiana state terre haute indiana popular game televised muncie area vice versa terre haute game happens muncie app market power ability raise prices charged competitive market jefferson parish hospital dist hyde steel fortner enterprises du pont de nemours fact practice categorically unlawful manifestations certainly mean universally lawful example joint buying selling arrangements unlawful per se hesitate enjoining domestic selling arrangement say ford general motors distributed automobiles nationally single selling agent even without trial judge know two large firms major factors automobile market joint selling eliminate important price competition quite substantial enough distribute products independently one hardly imagine justification actually probable fact strong enough principle make particular joint selling arrangement reasonable sherman act essential point rule reason sometimes applied twinkling eye areeda rule reason antitrust analysis general issues federal judicial center june parenthetical omitted moreover plan member institutions may compete terms price output manifest significant forms competition eliminated see catalano target sales per curiam professional engineers paramount famous lasky see mckesson robbins oil see also klor stores solicitor general correctly observes need respondents establish monopoly power precisely defined market television programming order prove restraint unreasonable lower courts found ncaa power market intercollegiate sports also market television programming matter broadly narrowly market defined ncaa television restrictions reduced output subverted viewer choice distorted pricing consequently unless controls countervailing procompetitive justification deemed unlawful regardless whether petitioner substantial market power advertising dollars reasonableness particular alleged restraint often depends market power parties involved judgment market power means effects conduct market place assessed market power one test reasonableness effects conduct ascertained means short extensive market analysis countervailing competitive virtues evident lengthy analysis market power necessary brief amicus curiae citation omitted see grinnell du pont de nemours publishing see see also hochberg horowitz broadcasting catv beauty bane major college football law contemp prob see jefferson parish hospital dist hyde concurring judgment fortner enterprises steel see district observed analogous programming terms demographic characteristics audience professional football condition limited exemption antitrust laws professional football leagues prohibited telecasting games times conflict intercollegiate football see approved district reliance greater potential higher television ratings championship events opposed events support market definition see reasons also apparent unique appeal ncaa football telecasts viewers means standpoint consumer whose interests statute especially intended serve jefferson parish hospital dist hyde doubt college football constitutes separate market reasonable substitute thus agree district makes difference whether market defined standpoint broadcasters advertisers viewers see jefferson parish hospital dist hyde northern pacific petitioner seems concede much see brief petitioner tr oral arg see citizen publishing sealy timken roller bearing associated press see compare colleges clearly able negotiate agreements whatever broadcasters choose dealing tens thousands relatively brief musical works football games played eleven times year broadcast music footnotes omitted extent blanket license different product ascap really joint sales agency offering individual goods many sellers separate seller offering blanket license individual compositions raw material ascap short made market individual composers inherently unable compete fully effectively ensuring individual members joint venture free increase output viewed central evaluating competitive character joint ventures see brodley joint ventures antitrust policy harv rev see also note charities sherman act yale ncaa faced interbrand competition available substitutes certain forms collective action might appropriate order enhance ability compete see continental conclusion concerning availability substitutes part iii supra forecloses justification case however ncaa plan even arguable related desire protect live attendance ensuring game televised area played cooperative action necessary kind blackout home team always refuse sell right telecast game stations immediate area ncaa never justified television plan interest assisting schools blacking home games areas played period ncaa also expressed concern congress urging limit antitrust exemption professional football obtained telecasting games contests held friday saturday telecasts might interfere attendance intercollegiate games see cong rec remarks celler hearings supra statement william reed provision enacted result found see greatest flaw ncaa argument manifest new plan football television limit televised football order protect gate attendance evidence shows new plan many areas country access nine hours college football television several saturdays coming season ground rules eliminate programming full nine hours college football shown television hour period almost every saturday football season major television markets country hardly said plan devised order protect gate attendance ironically extent ncaa position merit rests assumption football telecasts unique product ncaa argues see supra television programming essentially fungible possible protect attendance without banning television hours intercollegiate football games held see part ii supra seems unlikely example greater disparity football prowess ohio state university northwestern university recent years without ncaa television plan district found fact ncaa strikingly unsuccessful indeed attempted prevent emergence power elite intercollegiate football see moreover district finding local regional telecasts without ncaa controls means northwestern well generated television income free market obtained ncaa regime indeed district found basic reason television plan endured ncaa effect controlled schools restrained plan plaintiffs cfa members attempted persuade majority ncaa members ncaa gone far beyond legitimate role football television surprisingly none cfa proposals adopted instead membership uniformly adopted proposals ncaa administration legitimized ncaa exercises power result surprising light makeup voting membership approximately voting members ncaa divisions ii iii subjected ncaa television controls division members play football members division time january convention division made prominent schools schools account football games shown network television therefore voting members less suffer direct restriction right sell football games television moreover district found schools realize increased revenues free market funnel revenues football programs see see see see continental see also supra true television viewers also athletes district finding television exposure schools increase absence ncaa television plan means smaller institutions appealing essentially local regional markets get exposure plan enjoined enhancing ability compete student athletes justice white justice rehnquist joins dissenting ncaa unincorporated nonprofit educational association whose membership includes almost nonprofit public private colleges universities nonprofit athletic conferences organizations formed response public outery concerning abuses intercollegiate athletics ncaa annual convention establishes policies rules governing members participation college sports conducts national championships exerts control economic aspects sports engages commercial activities see note tackling intercollegiate athletics antitrust analysis yale although ncaa activities viewed isolation bear resemblance undertaken professional sports leagues associations errs treating intercollegiate athletics ncaa control purely commercial venture colleges universities participate solely even primarily pursuit profits accordingly dissent fanciful suggest colleges concerned profitability ventures clear goals play central role sports programs weistart lowell law sports ncaa member institutions designed competitive athletic programs vital part educational system constitution interpretations ncaa art ii reprinted app deviations goal produced persistent perhaps inevitable desire win costs past led continue lead wide range competitive excesses prove harmful students institutions alike see hanford report american council education inquiry need feasibility national study intercollegiate athletics hanford marco place intercollegiate athletics higher education responsibility faculty higher educ fundamental policy underlying ncaa regulatory program therefore minimize deviations maintain intercollegiate athletics integral part educational program athlete integral part student body retain clear line demarcation college athletics professional sports constitution interpretations ncaa art ii reprinted app see supp wd pursuit fundamental goal others related ncaa imposes numerous controls intercollegiate athletic competition among members many similar summarily condemned undertaken traditional business setting weistart lowell supra thus ncaa promulgated enforced rules limiting compensation see justice ncaa supp number coaches school may hire football basketball programs see hennessey ncaa supra also prohibited athletes formerly compensated playing participating intercollegiate competition see jones ncaa supp mass restricted number athletic scholarships members may award established minimum academic standards recipients scholarships pervasively regulated recruitment process student eligibility practice schedules squad size number games played many aspects intercollegiate athletics see one clear effect regulations prevent institutions competitively economically successful programs taking advantage success expanding programs improving quality product offer increasing sports revenues yet regulations represents desirable legitimate attempt keep university athletics becoming professionalized extent profit making objectives overshadow educational objectives kupec atlantic coast conference supp mdnc significantly neither appeals questions validity regulations rule reason see ante notwithstanding contrary conclusion district majority ante believe restraint consideration case ncaa television plan differs fundamentally antitrust purposes seemingly anticompetitive aspects organization broader program television plan like many ncaa actions furthers several complementary ends specifically plan designed reduce insofar possible adverse effects live television upon football game attendance turn upon athletic related educational programs dependent upon proceeds therefrom spread football television participation among many colleges practicable reflect properly image universities educational institutions promote college football use television advance overall interests intercollegiate athletics provide college football television public extent compatible objectives app addressing infirmities opinion state understanding holds necessary first restate essentials ncaa television plan refer course case lower courts plan issue contracts entered american broadcasting abc columbia broadcasting system cbs turner broadcasting system turner competitive bidding every fall abc cbs present exposures college football turner show evening games overall price network stated contracts networks select games telecast pay directly colleges involved developed uniform fee game telecast unless within one exceptions designated number games may broadcast ncaa member may arrange televising games pursuant plan scheme course ncaa members must compete one another television appearances although competition limited somewhat fact college may appear television six times period games televised network games exceptions provided television plan schools appeared television network games additional teams exceptions report ncaa football television committee annual convention ncaa district held plan constituted price fixing output limitation illegal per se sherman act also held scheme illegal group boycott monopolization forbidden event unreasonable restraint trade entered injunction practical purposes excluded ncaa interfering regulating members arrangements televising football games appeals disagreeing boycott monopolization holdings otherwise upheld district judgment television plan violated sherman act focusing almost entirely aspects television plan appeals however differed district respect injunction noting injunction vested exclusive control television rights individual schools stated hile hold ncaa lawfully maintain exclusive control rights far rights may commonly regulated involves speculation made record instant case expressly stated example ncaa prevent members telecasting games friday night competition high school games emphasized disparity revenue schools reduced properly drawn system payments ensure adequate athletic funding schools earn substantial television revenues indicated outlawing contract payment provisions blackout rules nevertheless left district injunction full force remanded case proceedings light opinion anticipating grant certiorari stayed judgment appeals affirming appeals first holds television plan sufficient redeeming virtues escape condemnation per se violation sherman act inherent characteristics competitive athletics justifiable role ncaa regulating college athletics nevertheless affirms appeals judgment ncaa plan unreasonable restraint trade deems plan aspects shall explain reaching result traps commercial antitrust rhetoric ideology ignores context restraints imposed essential point emphasize neither appeals purports hold ncaa may require members televise games pool share compensation received among schools ncaa limit number times member may arrange games shown television enforce reasonable blackout rules avoid competition television audiences shall demonstrate wisely correctly condemn regulations affirm appeals judgment ncaa may limit number games broadcast television may contract overall price effect setting price individual game broadcast rights disagree respects ii competitive market district observed institution independent seller right telecast football games seller free sell right entity chose whatever price get ncaa television plan member institutions competitive freedom restrained part television rights bought sold basis package deal limited exceptions particularly relevant antitrust scrutiny plan broadcasters wishing televise college football must willing able purchase package television rights without knowing advance particular games rights apply real negotiations price terms take place broadcasters ncaa rather broadcasters individual schools knowing games worth others networks undoubtedly exercise whatever bargaining power possess ensure minimum aggregate compensation agree provide package bears relation average value games anticipate televising schools games contribute disproportionately total value package see manner minimum aggregate compensation distributed among schools whose games televised given rise situation less prominent schools receive rights fees receive competitive market football powers like respondents receive less relies instead primarily district findings television plan restricts output plan creates noncompetitive price structure unresponsive viewer demand ante see findings notwithstanding unconvinced television plan substantial anticompetitive effect first clear district employed proper measure output prepared say district finding many college football games televised absence ncaa controls clearly erroneous extent output measured solely terms number televised games need deny reduced ncaa television plan measure output proper one district found eliminating plan reduce number games network television increase number games shown locally regionally made finding concerning effect plan total viewership appropriate measure output least claimed anticompetitive effects ncaa plan ncaa position seems likely television plan increasing network coverage expense local broadcasts actually expands total television audience ncaa football ncaa surely irrational profit maximizer case absence contrary finding district conclude respondents carried burden showing television plan adverse effect output therefore anticompetitive second even important unconvinced respondents proved reduction number televised college football games brought ncaa television plan resulted anticompetitive increase price television rights district found course networks actually paying large fees ncaa agrees limit production ncaa agree limit production networks pay large fee undoubtedly true market television rights college football competitions equated markets wheat widgets reductions output monopolists product markets enable producers exact higher price product restricting number games televised however ncaa creates new product exclusive television rights valuable networks products individual members market independently television plan makes certain number games available purchase television networks limits incidence competition football telecasts available viewers competition limited purchasing network count larger share audience translates greater advertising revenues accordingly larger payments per game televised teams thus relationship size rights payments value product purchased networks network purchasing series games plan willing pay one purchasing games absence plan since plan enables network deliver larger share available audience advertisers thus increase revenues short focusing price paid networks television rights rather nature quality product delivered ncaa member institutions district well may well deemed anticompetitive rise price properly attributed increase output measured terms viewership third district emphasis prices paid particular games seems misdirected erroneous matter law distribution minimum aggregate fees among participants television plan course wholly based competitive price structure responsive viewer demand partially related value schools contribute total package networks agree buy already indicated see supra redistribution total television revenues wholly justifiable even necessary aspect maintaining system truly competitive college teams long ncaa artificially fix price entire package demand supercompetitive prices aspect plan little concern find little anything record support notion ncaa power extract television networks broadcasting rights worth marketplace iii even convinced district err failing look total viewership opposed number televised games measuring output anticompetitive effect failing fully consider whether ncaa possesses power fix package price opposed distribution package price among participating teams nevertheless hold television plan passes muster rule reason ncaa argues strenuously plan network contracts part joint venture among many nation universities create product college football offer product way attractive fans stadiums viewers television cooperation producing product makes competitive television live attractions brief petitioner recognizes ncaa faced interbrand competition available substitutes certain forms collective action might appropriate order enhance ability compete ante see continental gte sylvania rejects ncaa proffered procompetitive justification however ground college football unique product available substitutes need collective action order enable product compete nonexistent competitors ante omitted proposition singularly unpersuasive one thing say ncaa football unique product intercollegiate football telecasts generate audience uniquely attractive advertisers competitors unable offer programming attract similar audience ante omitted see quite another view say maintenance enhancement quality ncaa football telecasts unnecessary enable telecasts compete effectively forms entertainment ncaa monopoly power competing types entertainment quality ncaa product deteriorate perceptible degree cost using product rise fans undoubtedly turn another form entertainment broad possibilities alternative forms entertainment ncaa properly belongs broader entertainment market rather narrower marke like sports football grauer recognition national football league single entity section sherman act implications consumer welfare model rev see national football league north american soccer league rehnquist dissenting denial certiorari atwell grimes lopiano money game hanford michener sports america note yale ncaa suggested number plausible ways television plan might enhance ability college football telecasts compete forms entertainment brief petitioner although district conclude plan necessary effective marketing product finding directed question whether college football telecasts continue absence plan made explicit findings concerning effect plan viewership thus reject factual premise ncaa argument plan might enhance competition increasing market penetration ncaa football see also district finding network coverage ncaa football likely decrease plan struck fact strongly suggests validity ncaa position record therefore prepared conclude restraints imposed ncaa television plan may suppress even destroy competition rather merely regulat perhaps thereby promot competition chicago board trade iv finally return point began essentially noneconomic nature ncaa program like judge barrett dissented appeals believe lower courts erred subjugating ncaa educational goals incidentally oklahoma georgia insist must maintained event purely competitive commercialism every school approach television contract bargaining although ncaa enjoy blanket immunity antitrust laws cf goldfarb virginia state bar important remember sherman act aimed primarily combinations commercial objectives applied limited extent organizations normally objectives klor stores fact restraint operates nonprofit educational institutions distinguished business entities relevant determining whether particular restraint violates sherman act fact restraint affects profession rather business goldfarb virginia state bar supra cf community communications boulder legitimate noneconomic goals colleges universities ignored analyzing restraints imposed associations institutions members noneconomic goals may require particular practice properly viewed violation sherman act another context treated differently goldfarb virginia state bar supra appeals like district flatly refused consider termed noneconomic justifications advanced ncaa support television plan view decision national society professional engineers precludes reliance noneconomic factors assessing reasonableness television plan see tr oral arg view mistaken note many words repeat error professional engineers make clear antitrust analysis usually turns competitive conditions economic conceptions ordinarily inquiry mandated rule reason whether challenged agreement one promotes competition one suppresses competition purpose antitrust analysis emphasized form judgment competitive significance restraint decide whether policy favoring competition public interest interest members industry broadly read statements suggest noneconomic values like promotion amateurism fundamental educational objectives save television plan condemnation sherman act statements made response public interest justifications proffered defense ban competitive bidding imposed practitioners engaged standard commercial activities primarily noneconomic values pursued educational institutions differ fundamentally overriding commercial purpose activities engineers lawyers doctors businessmen gulland byrne steinbach intercollegiate athletics television contracts beyond economic justifications antitrust analysis agreements among colleges ford rev neither professional engineers decision suggests associations nonprofit educational institutions must defend restraints solely terms competitive impact without regard legitimate noneconomic values promote values factored balance ncaa television plan seems eminently reasonable fundamentally plan fosters goal amateurism spreading revenues among various schools reducing financial incentives toward professionalism observes ncaa imposes variety restrictions perhaps better suited television plan preservation amateurism ante although ncaa attempt vigorously enforce restrictions vast potential abuse suggests measures like television plan designed limit rewards professionalism fully consistent essential attainment ncaa objectives short restraints upon oklahoma georgia colleges universities excellent football programs insure confine programs within principles amateurism intercollegiate athletics supplement rather inhibit educational achievement barrett dissenting collateral consequences spreading regional national appearances among number schools many television plan like ban compensating may well encourage students choose schools least part basis educational quality reducing perceived economic element choice see note yale helps ensure economic viability athletic programs wide variety schools weaker football teams promot es competitive football among many varied amateur teams nationwide gulland byrne steinbach supra omitted important contributions believe sufficient offset minimal anticompetitive effects television plan reasons reverse judgment appeals least appeals directed vacate injunction district pending proceedings necessary amend outstanding injunction accommodate substantial remaining authority ncaa regulate telecasting members football games television plans similar features place since plans submitted antitrust division department justice review department took matter study app litigation apparently never taken position ncaa television plans unlawful litigation triggered ncaa response attempt college football association cfa organization dominant schools conferences develop independent television plan extent plan contains features similar condemned anticompetitive cfa may well antitrust problems extent desire continued membership ncaa moreover participation television plan developed cfa exempt football powers like respondents many kinds ncaa controls television appearances purport invalidate