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NCAA to End Controversial NIL Ban After Antitrust Lawsuit Settlement

By  |  March 18, 2025

The NCAA is set to abandon a rule that prevented student-athletes from negotiating name, image, and likeness (NIL) deals before enrolling at a specific college, according to Tennessee Attorney General Jonathan Skrmetti. The announcement on Monday came alongside the revelation of a proposed settlement in a lawsuit filed against the NCAA over the controversial policy.

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    Skrmetti, along with a coalition of state attorneys general, had sued the NCAA, arguing that the rule violated antitrust laws by unfairly restricting athletes’ ability to capitalize on their personal brand. The lawsuit, which drew support from officials in New York, Virginia, Florida, and the District of Columbia, has now paved the way for a significant shift in NIL regulations for college athletes.

    “The rise of a multi-billion-dollar entertainment industry built on the backs of college athletes should not come at the expense of the very individuals who make it all possible,” Skrmetti said in a statement, emphasizing the importance of allowing athletes to negotiate NIL deals freely.

    According to the Associated Press, the proposed settlement will now go before a federal judge for approval. If the agreement is accepted, it would allow athletes to begin negotiating NIL compensation before they officially enroll at a university. Furthermore, third-party entities will be permitted to engage in NIL discussions during recruitment periods, potentially altering the landscape of college sports recruiting.

    Related: Athletes Challenge NCAA’s $2.8 Billion Settlement Over Compensation Restrictions

    An NCAA spokesperson expressed support for the settlement, underscoring the organization’s commitment to helping student-athletes benefit from their NIL rights. “This settlement underscores our support for student-athletes benefiting from their NIL and our commitment to provide increased benefits to student-athletes at every stage in their collegiate experience,” the spokesperson said, adding that the move would create a more sustainable model for the future of college sports.

    Under the proposed agreement, the NCAA will also be required to make public any future NIL-related policy changes for the next five years. Additionally, the organization will be obligated to engage with state officials before implementing new NIL proposals.

    This settlement follows a temporary suspension of the rule, as ordered by the judge overseeing the case, while the legal proceedings were ongoing. If approved, the changes could mark a major shift in the way college athletes engage with the growing NIL market, which has become an increasingly important source of income in college athletics.

    Per Associated Press, the settlement highlights a broader movement toward reforming college sports policies to better accommodate the needs and interests of athletes in the evolving landscape of college athletics.

    Source: AP News