Attorney General Miyares Sues NCAA Over NIL Restrictions

NCAA’s NIL-recruiting ban violates federal antitrust law, thwarts the free market, and unfairly limits student-athletes

RICHMOND, VA - Virginia Attorney General Jason Miyares today filed an antitrust lawsuit against the National Collegiate Athletic Association (NCAA), alongside the Attorney General of Tennessee. The states allege that the NCAA’s restrictions on the ability of current and future student-athletes to negotiate and benefit from their Name, Image, and Likeness rights (NIL) violate federal antitrust law and is harmful to current and future student-athletes.

“Student-athletes generate massive revenues for the NCAA, its members, and corporations within the college sports industry, especially in football and basketball,” said Attorney General Miyares. “Student athletes should have more freedom over negotiating and earning money for their skills and ability. Colleges and universities benefit dramatically from the success of their student athletes - it’s only fair that student athletes also get the full picture of how they may benefit from their choice of school as well.”

After the Supreme Court ruled that the NCAA violated antitrust law by imposing unreasonable restraints on the compensation college athletes may receive, Virginia and other states enacted laws to foster a thriving NIL market for the benefit of student-athletes. Contrary to those state laws and the Sherman Act, the NCAA has adopted a shifting and opaque series of rules and guidelines that thwart the ability of student-athletes to get fair compensation for their NIL.

Currently, the NCAA prohibits prospective student-athletes from discussing potential NIL opportunities with schools and collectives prior to enrolling. Prospective student-athletes are:

• prevented from negotiating with collectives;
• unable to review NIL offers prior to making enrollment decisions; and
• cannot adequately consider the full scope of NIL-related services a school might offer upon enrollment.

The full lawsuit can be read here.

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