NASHVILLE, Tenn. (WKRN) — A bipartisan coalition of states collectively suing the National Collegiate Athletics Association (NCAA) have reached a “settlement in principle” with the organization over recruiting bans in name, image, and likeness (NIL).
Tennessee led the charge in suing the NCAA last year with the Commonwealth of Virginia, filing an antitrust lawsuit over NIL recruiting bans exactly one year ago. In their suit, the states claimed the anticompetitive restrictions on the ability of current and future student-athletes to benefit from NIL deals. Tennessee and Virginia said the restrictions constituted violations of the Sherman Act and should be blocked.
The lawsuit came as a response to the NCAA’s investigation of University of Tennessee athletics for potential recruiting violations, according to the Associated Press (AP).
“Student-athletes are entitled to rules that are clear and rules that are fair,” Tennessee Attorney General Jonathan Skrmetti said in 2024. “College sports wouldn’t exist without college athletes, and those students shouldn’t be left behind while everybody else involved prospers. The NCAA’s restraints on prospective students’ ability to meaningfully negotiate NIL deals violate federal antitrust law. Only Congress has the power to impose such limits.”
Skrmetti has announced the parties have reached a settlement agreement in principle, laying the groundwork for a “permanent solution.”
“We’ve been fighting hard to protect Tennessee student-athletes,” he 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.”
According to Skrmetti, a federal judge has agreed with the states’ allegations and blocked the NCAA’s enforcement of the rules throughout the duration of the litigation. U.S. District Judge Clifton Corker issued a preliminary injunction last February that undercut what had been a fundamental principle of the NCAA’s model of amateurism for decades: third parties cannot pay recruits to attend a particular school.
The injunction barred the NCAA from enforcing its rules prohibiting NIL compensation for recruits during the course of the litigation.
According to the AP, notice that a settlement has been reached in principle with a term sheet was filed Friday with the U.S. District Court for the Eastern District of Tennessee. A status report had been due Friday. The settlement will be finalized along with a request for a permanent injunction by March 17, according to the filing.
