New York Attorney General Letitia James and a bipartisan coalition of attorneys general on Monday secured a settlement with the National Collegiate Athletic Association (NCAA) that will protect student athletes’ rights to benefit from the use of their name, image, and likeness (NIL).
In May 2024, Attorney General James and the coalition of attorneys general sued the NCAA for restricting student athletes’ abilities to earn money from NIL opportunities. The lawsuit alleged that the NCAA’s NIL rules prevented student-athletes from learning about their potential compensation from NIL opportunities before deciding to commit, enroll, or transfer to a university. Attorney General James and the coalition argued that these restrictions violate federal antitrust law and limit student athletes’ chances to earn NIL compensation. The settlement will end the NCAA’s restrictive NIL rules and enable student-athletes to learn about NIL opportunities before committing to a school.
“Student-athletes should have the freedom to decide the course of their athletic careers without restrictions that rig the game against them,” said Attorney General James. “The NCAA’s NIL rules put student-athletes on an unfair playing field, preventing them from knowing about opportunities to get paid before they commit to a school. I am proud to have secured a better deal for these athletes that will ensure they are fully informed before committing to play.”
Following Attorney General James and the coalition’s lawsuit, a federal judge agreed with the states’ allegations and blocked the NCAA’s enforcement of its unlawful rules. The attorneys general and the NCAA have now negotiated a settlement that will protect student athletes’ NIL rights during the recruiting process and prohibit the NCAA from reviving its NIL recruiting rules. Under the settlement, the NCAA will not enforce its NIL recruiting rules or enact any similar policies. The NCAA must also publicize any new proposed rule concerning NIL opportunities on a dedicated public webpage for five years.
Joining Attorney General James in this settlement are the attorneys general of Florida, Tennessee, Virginia, and the District of Columbia.
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