The NCAA has long held a very tight leash when it comes to what they will and will not allow in regards to college athletes.
Only over the past few years has the NCAA begun allowing players to make money from their own name and likeness. However, the ban on the student athletes signing a contract to earn money for their name and likeness before they signed a letter of commitment and actually enrolling in college remained…until now!
Arguing that the ban was a violation of anti-trust laws, a few state Attorneys General sued the NCAA. On March 17 a settlement was reached and the ban has now been lifted. The agreement must still be approved by a federal judge.
Tennessee Attorney General Jonathan Skrmetti spoke on the settlement via statement saying, “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.” The Attorneys General for New York, Virginia, Florida and the District of Columbia were also a part of the suit.
A spokesperson for the NCAA noted that the 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, creating a sustainable model for the future of college sports.”
Once approved by the judge, college athletes will be able to negotiate their own compensation for deals involving their name, image, and likeness even before they have enrolled in college. The settlement will also allow negotiations by a third party.
The NCAA must publicize any NIL rule changes for the next five years and meet with states before the details of the settlement can go into effect.