Athletes who are being recruited by NCAA schools will now have the ability to negotiate name, image and likeness (NIL) compensation under the terms of a proposed settlement of an antitrust lawsuit brought by the states of Tennessee and Virginia against the NCAA in 2024.
If approved by a judge, the NCAA will stop enforcing rules prohibiting NIL from being used as a recruiting inducement. The NCAA also will not adopt any new rules banning NIL in recruiting.
The changes come after a federal lawsuit was filed in January 2024 by the attorneys general of Tennessee and Virginia after an NCAA inquiry into potential recruiting/NIL violations surrounding Volunteers quarterback Nico Iamaleava. He was a five-star recruit whose multi-million-dollar recruiting process drew national attention. Florida, New York and the District of Columbia eventually joined in the suit against the NCAA.
In February 2024, a federal judge sided with the states, granting a preliminary injunction that kept the NCAA from enforcing its rules. The state and association announced in January that they were settling the case before filing the proposed terms Monday.
“I’m glad to see the NCAA give up on defending a world that no longer exists,” Tennessee attorney general Jonathan Skrmetti said in a statement. “I hope the association’s laudable change of position marks a transition from acting as the worst kind of HOA toward cultivating a new era of great college sports for athletes, schools, and fans. We all dream of a future when you can keep up with college sports without having to learn the Federal Rules of Civil Procedure.”
This week’s development comes less than a month before another major case — House vs. NCAA — is expected to have its settlement approved. Those terms will pave the way for schools to begin paying players directly later this year through $20.5 million in revenue-sharing.
“This agreement continues the progress we have made over the last few years in allowing prospective and transferring student-athletes to seek out NIL opportunities,” the NCAA said in a statement. “This judgment is fully consistent with the House settlement and underscores our support for student-athletes benefiting from their NIL and our commitment to provide increased benefits to student-athletes at every stage in their collegiate experience, creating a sustainable model for the future of college sports.
“We look forward to continuing to support prospective and current student-athletes while we work toward a more equitable future for college sports.”
(Photo: Andy Lyons / Getty Images)
