As previously reported, Pennsylvania law makers set forth legislation designed to keep the NCAA’s $60 million fine levied on Pennsylvania State University (“Penn State”) in Pennsylvania.  Politicians in Pennsylvania have bemoaned the NCAA’s desire to use the funds to finance child abuse prevention initiatives outside of the Commonwealth of Pennsylvania.  In the suit, the NCAA argues the Pennsylvania Institution of Higher Education Monetary Penalty Endowment Act (“Act”) violates the United States Constitution’s commerce clause and contract clause.  In short, the NCAA argues the Act directly regulates interstate commerce, which is similar to the arguments upheld in Miller v. NCAA in Nevada.  The NCAA’s petition states “[b]y seizing the funds and restricting eligibility to benefit from the funds only to Pennsylvania programs benefiting only Pennsylvania residents, the act will defeat the consent decree’s plain terms and frustrate the parties’ intended purpose.”

For any questions, feel free to contact Christian Dennie at cdennie@bgsfirm.com.