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The NCAA and the attorneys general of Tennessee and Virginia agreed to settle an antitrust lawsuit brought by the states in 2024 that challenged the NCAA’s rules banning name, image and likeness (NIL) compensation from being used as a recruiting inducement, according to a statement released by Tennessee attorney general Jonathan Skrmetti on Friday afternoon.
Terms of the agreement were not released and will not impact the ongoing House settlement, a $2.8 billion settlement involving separate antitrust claims that would allow schools to share revenue directly with college athletes.
“The NCAA has reached a settlement that resolves the issues Tennessee and the other involved states raised without posing an obstacle to completing the House, Carter and Hubbard settlements,” the NCAA said in a statement. “We anticipate full terms will be released later in the spring.”
The judge overseeing the case granted the states a preliminary injunction last February, prohibiting the NCAA from enforcing rules related to NIL compensation and recruiting. The NCAA responded by pausing all investigations involving third-party participation in NIL-related activities.
The initial federal lawsuit was filed exactly one year ago after it was revealed the NCAA was looking into potential infractions by the University of Tennessee. At the heart of the inquiry was a deal between quarterback Nico Iamaleava, who was a five-star recruit from California, and an NIL collective that works with Tennessee athletes. Attorneys general from Florida, the District of Columbia and New York ultimately joined the suit as well.
“We’ve been fighting hard to protect Tennessee student-athletes,” Skrmetti said in a statement. “Last year, we blocked the NCAA’s unlawful enforcement against Tennessee students and schools, and now this settlement in principle lays the groundwork for a permanent solution.”
The injunction will continue in the wake of the settlement, but with the NCAA and major college conferences hoping to implement a revenue-sharing plan with athletes by the beginning of the 2025-26 school year as part of the House settlement, it’s unclear whether the NCAA’s previous rules regarding recruiting inducements and NIL would even be relevant under the new system.
The House settlement is still awaiting final approval from a federal judge in Northern California. A final approval hearing is scheduled for April 7.
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(Photo: Kirby Lee / USA TODAY Sports)
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