Latest ruling against NCAA paints future for NIL deals

Kirby Lee-USA TODAY Sports

Latest ruling against NCAA paints radical future for NIL deals

By Mike Santa Barbara | Last updated 2/23/24

On Friday, a federal judge in Tennessee landed a massive blow to the NCAA, suspending name, image and likeness restrictions for athletes.

Judge Clifton L. Corker granted a preliminary injunction, effective immediately, which means there are zero restrictions on NIL deals until the matter goes to trial. According to the judge's order, the NCAA's interim rules preventing athletes from negotiating with third parties may have broken the law.

"In an apparent attempt to prohibit those inducements, the NCAA issued guidance classifying NIL collectives as 'boosters' to prevent them from negotiating with student-athletes during the recruiting and transfer process," the order reads. "For the reasons stated herein, the NCAA's prohibition likely violates federal antitrust law and harms student-athletes."

Here's the Tennessee federal judge's full decision that granted a preliminary injunction against the NCAA over enforcement of NIL rules.https://t.co/tTzpI9CVrd
— A.J. Perez (@byajperez) February 23, 2024

The matter still has to go to trial, but the court's opinion is unlikely to change. Friday's ruling stems from a lawsuit filed jointly by Tennessee and Virginia against the NCAA contesting the recruiting restrictions regarding the use of NIL deals.

The NCAA responded that the ruling diminished an "already chaotic collegiate environment" by putting student-athletes at further risk of exploitation.

"The NCAA fully supports student-athletes making money from their name, image and likeness and is making changes to deliver more benefits to student-athletes, but an endless patchwork of state laws and court opinions make clear partnering with Congress is necessary to provide stability for the future of all college athletes," the statement read via Nicole Auerbach of The Athletic.

It's essentially a Wild West period for NIL deals, for now. However, as Andy Staples of On3 explained, it's likely to stay that way until the NCAA comes to its senses and accepts reality.

"This allows for a much more streamlined approach if the schools are smart enough to do it, and they just quit fighting the inevitable," Staples said. "Eventually, players are going to be employees, they're going to sign contracts, there's going to be a collective bargaining agreement -- that's going to happen."

True pay-for-play has finally landed, and many would argue that's how it should be. How it changes the landscape is anyone's guess, but one thing is sure, it's a landmark day for collegiate athletes.

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