National Collegiate Athletic Assn. v. Smith

Background

Renee M. Smith, a former college volleyball player, sued the National Collegiate Athletic Association (an unincorporated association of about 1,200 colleges) after the NCAA refused to waive a rule that kept her from playing as a postgraduate. Smith alleged the NCAA gave more waivers to men than women and claimed sex discrimination under Title IX, the federal law that bars sex discrimination in educational programs that receive federal money. The District Court dismissed her suit because it did not allege the NCAA itself received federal financial assistance. The Third Circuit said Smith could amend to allege the NCAA receives dues from member schools that do get federal funds, and that those dues would be enough for Title IX to apply.

Reasoning

The Court addressed whether an organization becomes a “recipient” of federal assistance merely by receiving dues from schools that get federal funds. The justices relied on earlier decisions saying the law covers entities that actually receive federal aid, not everyone who benefits indirectly. A federal regulation was read to mean that an entity counts as a recipient only if federal assistance is extended to it directly or through another recipient, not merely because it benefits economically. Applying that rule, the Court held that dues payments alone do not make the NCAA a Title IX recipient and reversed the Third Circuit’s view.

Real world impact

The decision means the NCAA is not automatically liable under Title IX just because member colleges receive federal money and pay dues. Student-athletes who challenge association rules must use other legal theories or show the association actually received federal assistance. The Court left alternative theories, like specific federal grants to NCAA programs or whether schools surrendered control to the NCAA, for lower courts to decide on remand.