HARRISBURG (May 20) – A federal judge will issue a ruling within a few weeks on the National Collegiate Athletics Association’s request to toss out Gov. Tom Corbett’s lawsuit that seeks to overturn sanctions imposed against Penn State University.
U.S. District Judge Yvette Kane gave no indication at the close of the two-hour proceeding Monday how she would rule on the NCAA’s motion to dismiss the suit. But the arguments offered by the two parties were so disparate, she said: “I feel like we’re not in the same stadium.”
Corbett’s lawyers argued that the NCAA acted beyond its authority and conspired to impose the sanctions that would wreak havoc on Pennsylvania’s economy and weaken the university’s standing, while polishing the organization’s enforcement reputation.
Scott Ballenger, who argued on behalf of the NCAA, contended the organization simply acted on its rules that focus on honesty, conduct and sportsmanship, and they won’t damage the overall market of top athletic talent or higher education.
“Penn State football is an economic power source for the commonwealth and its citizens,” Jim Schultz, general counsel for the governor, said during the proceedings. The state’s economy would be “seriously damaged” if the sanctions remain in effect, he added.
The NCAA sanctions include a $60 million fine, post-season bowl bans, and reduced athletic scholarships. The organization imposed the penalties last summer following what they called “an unprecedented failure of institutional integrity,” which allowed former assistant football coach Jerry Sandusky to prey on children. He was convicted on 45 counts stemming from a child sexual abuse investigation and sentenced to 30-60 years in prison. Penn State agreed to the penalties and is not party to the lawsuit.
Corbett’s lawsuit says limiting scholarships makes it difficult to attract top Division-I athletic prospects, hurts the university’s brand as an athletic program and a higher education institution, and also negatively impacts Penn State’s ability to sell apparel. The NCAA called those claims “absurd and speculative.”
The judge asked pointed questions to Corbett’s general counsel and, at one point, suggested the lawsuit might be more appropriate as a civil rights claim or a breach of contract.
Kane noted the governor’s complaint claiming that the sanctions were a result of a conspiracy among members of the NCAA doesn’t name who participated in the alleged conspiracy. Corbett’s lawyers said those would be the result of discovery process, where members of the NCAA would give depositions.
She also asked whether the governor’s case in undermined by Penn State president Rodney Erickson agreeing to the sanctions undermined the governor’s case.
Melissa Maxman, of Cozen O’Connor and outside counsel for Corbett, said members of the NCAA “ganged up on” Penn State, which had sanctions “crammed down their throat” under the threat of an all-out ban on athletics. She also noted the university’s Board of Trustees did not sign-off on Erickson’s decision to accept the sanctions.
The NCAA also argued whether Corbett has the authority to bring the action on behalf of Pennsylvania taxpayers. Schultz argued that only Corbett has the authority to file an anti-trust lawsuit on behalf of the commonwealth’s residents.
