From the Cornell Infobase:
The idea of an Ivy League was derived from James Lynah's policy to form closer bonds with the larger, older universities in the east. Policy called for the 'formation of a League, to reassert amateur principle, to adjure the current athletic sordidness and cynicism, to save, in short, athletic idealism.' (Morris Bishop, History of Cornell)
For years, the Ivy members already had been allied in leagues in basketball, ice hockey, baseball and swimming. Further common competition was found in the Heptagonal Games Association, which included Army and Navy, in the sports of baseball, track and field, and swimming. Through these other scheduling arrangements, the Ivy athletic directors were used to dealing with each other in matters of administration or the exchange of calculated confidences.
As a result of these dealings, and through extensive presidential meetings and discussions, the first 'Ivy Group Agreement' - addressing only football - was signed in 1945. While the 1945 statement did not address any scheduling issues, it did affirm the observance at the eight institutions of common practices in academic standards, eligibility requirements, and the administration of financial aid for athletes. These tenets are what still bind the Ivies together today and all continue to be based on the desire to secure competition with others having like philosophies. The athletic directors, at the direction of the presidents, were then more formally organized as a committee for cooperative endeavor in the details of athletic administration and a dean from each school was appointed to committee to exchange information on eligibility and to act for the presidents in cooperation with the athletic directors.
http://www.not-rocket-science.com/harvardsoccer/historyi.htm