NCAA Reaches Settlement in Antitrust Lawsuit Over NIL Rules
The NCAA has reached a settlement with Tennessee and Virginia in an antitrust lawsuit challenging the institution’s rules prohibiting the use of name, image, and likeness (NIL) compensation as a recruiting tool.
The agreement, announced Friday, will not impact a separate $2.8 billion settlement, known as the House settlement, wich would allow schools to share revenue directly with college athletes. That settlement is awaiting final approval from a federal judge in Northern California.
Terms of the settlement between the NCAA and the states were not disclosed and are expected to be released later in the spring.
The lawsuit was filed a year ago after the NCAA investigated potential infractions by the University of Tennessee. The probe centered on a deal between then-five-star recruit quarterback Nico Iamaleava and a Tennessee-affiliated NIL collective.The attorneys general of Florida, the District of Columbia, and New York later joined the suit.
Tennessee Attorney General Jonathan Skrmetti, who filed the initial lawsuit, said the settlement paves the way for a long-term solution.
“We’ve been fighting hard to protect Tennessee student-athletes,” Skrmetti said. “Last year, we blocked the NCAA’s unlawful enforcement against Tennessee students and schools, and now this settlement in principle lays the groundwork for a permanent solution.”
A final approval hearing for the House settlement is scheduled for April 7.
How does the NCAA’s settlement over NIL recruiting rules differ from the broader House settlement regarding revenue sharing with athletes?
NCAA Reaches Settlement in Antitrust Lawsuit Over NIL Rules
The NCAA has reached a settlement with Tennessee and Virginia in an antitrust lawsuit challenging the institution’s rules prohibiting the use of name, image, and likeness (NIL) compensation as a recruiting tool.
The agreement, announced Friday, will not impact a seperate $2.8 billion settlement, known as the House settlement, wich would allow schools to share revenue directly with college athletes.That settlement is awaiting final approval from a federal judge in Northern California.
Terms of the settlement between the NCAA and the states were not disclosed and are expected to be released later in the spring.
The lawsuit was filed a year ago after the NCAA investigated potential infractions by the University of Tennessee. The probe centered on a deal between then-five-star recruit quarterback Nico Iamaleava and a Tennessee-affiliated NIL collective.The attorneys general of Florida,the District of Columbia,and New York later joined the suit.
Tennessee Attorney General Jonathan Skrmetti, who filed the initial lawsuit, said the settlement paves the way for a long-term solution.
“We’ve been fighting hard to protect Tennessee student-athletes,” Skrmetti said. “Last year, we blocked the NCAA’s unlawful enforcement against Tennessee students and schools, and now this settlement in principle lays the groundwork for a permanent solution.”
A final approval hearing for the House settlement is scheduled for April 7.
Q&A
**Q: What does this settlement mean for college athletes?**
A: While the specific terms haven’t been released yet, this settlement suggests a potential shift in the NCAA’s stance on NIL compensation, particularly its use in recruiting. this could open doors for athletes to benefit more directly from their name, image, and likeness.
**Q: How does this settlement differ from the House settlement?**
A: The House settlement focuses on revenue sharing between schools and athletes, while this settlement specifically addresses the use of NIL in recruiting. Both aim to increase athletes’ financial opportunities but through different mechanisms.
**Q: What’s next for the NCAA and college sports?**
A: The NCAA is likely to face continued pressure to modernize its rules and adjust to the evolving landscape of college athletics. The release of the settlement terms and the outcome of the House settlement hearing in April will be crucial moments to watch.
