Tennessee Attorney General Jonathan Skrmetti announced Monday that a bipartisan coalition of states has reached a final settlement - pending court approval - in its lawsuit against the National Collegiate Athletics Association (NCAA), which he said "will reform college athletics by ending the NCAA’s illegal NIL (name, image, and likeness) recruiting ban."
AG Skrmetti said, “We fought hard to protect the rights of Tennessee’s student-athletes and this settlement locks in the victory for them. With a multi-billion-dollar entertainment industry rising from the foundation of college sports, the kids who make it all happen should not be the only people denied an opportunity to prosper.
"This settlement benefits generations of student-athletes, protects Tennessee universities from NCAA retaliation, and pushes college sports toward a new equilibrium that acknowledges financial reality while preserving competitive integrity.
"I’m glad to see the NCAA give up on defending a world that no longer exists. 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.”
He said, if approved by the court, the settlement "will transform college athletics and ensure the rights and freedoms of student-athletes by":
-
Empowering Student-Athletes During Recruitment: Guarantee that future student-athletes and current student-athletes in the transfer portal can freely negotiate compensation for their name, image, and likeness before they commit to a specific school;
-
Removing Third-Party Restrictions: Allow third parties to negotiate NIL deals with prospective student-athletes during the standard recruiting windows;
-
Enhancing School Support: Enable schools to provide prospective student-athletes with support and assistance regarding NIL opportunities during the recruiting process;
-
Securing Long-Term Protections: Prohibit the NCAA from undermining or circumventing these provisions through future actions; and
-
Establishing Increased Transparency and Oversight: The NCAA must publicize any proposed NIL changes for the next five years and must meet with the states before any proposed NIL changes can go into effect.
In 2024, Tennessee Attorney General Skrmetti and Virginia Attorney General Jason Miyares, along with the Attorneys General of Florida, the District of Columbia, and New York, filed a federal lawsuit against the NCAA. The suit successfully challenged the NCAA’s NIL Recruiting Ban as an anti-competitive practice that violated federal antitrust law and harmed student-athletes, it was stated.
A federal judge agreed with the States’ allegations and temporarily blocked the NCAA’s enforcement of its illegal rules, and the parties announced a settlement in principle on Jan. 31.
This final settlement, which awaits court approval, "represents a decisive victory in the continued effort to protect the freedom of student-athletes and stabilize college athletics," AG Skrmetti said.
You can read the final settlement agreement here.