Federal Judge Dismisses Mario Chalmers’ Antitrust Lawsuit Against NCAA Over NIL Rights

The case, brought before U.S. District Judge Paul Engelmayer in New York, centered on allegations that the NCAA continues to exploit historic footage of players without compensating them, particularly during events like March Madness. However, per a statement issued in court documents, Engelmayer found the claims were barred by the statute of limitations, siding with the NCAA’s argument that the players’ lawsuit was filed too late.

Chalmers, best known for his iconic three-pointer that helped the University of Kansas clinch the 2008 NCAA championship, and others—including former Arizona star Jason Terry and Missouri’s Alex Oriakhi—contended that the NCAA’s ongoing use of vintage highlights violated antitrust laws. Yet, according to a statement in Engelmayer’s 34-page decision, the continued use of footage obtained during the players’ college years does not reset the clock for legal action under federal law.

“Under it, the NCAA’s use today of a NIL acquired decades ago as the fruit of an antitrust violation does not constitute a new overt act restarting the limitations clock,” Engelmayer wrote, emphasizing that the footage was originally secured through agreements players entered when they competed collegiately.

Related: US Judge Delays Approval of $2.8 Billion NCAA Settlement Over Athlete Rights

The lawsuit had drawn attention for highlighting how moments like Chalmers’ game-tying shot in the 2008 national championship game remain featured in NCAA promotions, generating revenue without benefit to the athletes themselves. The plaintiffs argued that such uses should entitle them to retroactive compensation. However, at a hearing in January, Engelmayer warned that the players faced an uphill battle, noting that by signing their student-athlete contracts, they surrendered rights to such footage long ago.

The court also referenced earlier precedent, stating that the plaintiffs had been part of the O’Bannon v. NCAA class action, which had already addressed several issues related to NIL use. According to a statement in Monday’s order, prior litigation left little room for Chalmers and his fellow plaintiffs to press forward with new claims on similar grounds.

Legal experts suggest the ruling may foreshadow outcomes in similar cases. “All of these are essentially the same lawsuit,” Boise State sports law professor Sam Ehrlich told Courthouse News, noting the parallels between the Chalmers suit and recent complaints filed by former college football stars like Reggie Bush and Terrelle Pryor.

The NCAA’s approach to NIL has undergone significant changes in recent years. In 2021, the organization adopted a new policy allowing current student-athletes to profit from endorsements and other NIL opportunities—a shift that marked a major departure from previous rules.

Source: Court House News