In the case of National Collegiate Athletic Association v. Jerry Tarkanian, the Supreme Court ruled in favor of NCAA, stating that it was not a "state actor". The dispute began when Jerry Tarkanian, then head coach for University of Nevada's basketball team, was suspended by NCAA due to alleged recruiting violations. Tarkanian sued on grounds that his constitutional rights were violated as he wasn't provided due process before being penalized. He argued that since many member institutions are state-run and receive public funding, NCAA should be considered a state actor and thus subject to constitutional constraints regarding fair procedure. However, the court disagreed with this argument asserting that while universities may be public entities themselves; their collective participation in an association like NCAA doesn’t make it a state actor too. Therefore, its disciplinary actions don't have to comply with constitutional requirements for procedural fairness under Fourteenth Amendment’s Due Process Clause.

In the dissenting opinion for NATIONAL COLLEGIATE ATHLETIC ASSOCIATION v. JERRY TARKANIAN, Justice White argued that the NCAA should be considered a state actor due to its regulatory power over public universities and their athletic programs. He contended that because public institutions make up a significant portion of the NCAA's membership and these institutions are subject to state control, any disciplinary actions taken by the NCAA against coaches at these schools should be viewed as state action. Therefore, such actions must comply with constitutional standards of fairness under the Fourteenth Amendment’s Due Process Clause. In this case, he believed Coach Jerry Tarkanian was denied his right to due process when he was suspended by an NCAA committee without being given adequate notice or opportunity to defend himself against allegations of recruiting violations.