Debunking a Popular Antitrust Myth: The Single Entity Rule and Why College Football’s Bowl Championship Series Does Not Violate the Sherman Antitrust Act

Christopher H. Pruitt, Covington & Burling LLP

Abstract

Much public controversy resulted from last year’s selections to play in college football's national championship game, and this controversy has generated interest among lawmakers to reform the system that governs the five most lucrative and highly publicized post-season games, known as the Bowl Championship Series ("BCS"). One of the incorrect premises underlying these calls for reform is that the BCS constitutes an antitrust violation. Dispelling that myth alone probably does not warrant a law review article; however, the analysis raises an interesting and controversial issue concerning when an organization of separately owned businesses should be considered a “single entity” for antitrust purposes. I argue that even when businesses (in this case universities) are economic competitors in one market, single entity treatment is appropriate when they produce a joint product in a separate market. This conclusion challenges the traditional belief that universities act as separate members of a “joint venture” when producing college sports.