Tennessee Attorney General Jonathan Skrmetti and Virginia Attorney General Jason Miyares sued the NCAA on Wednesday, accusing the organization of antitrust violations related to its name, image, and likeness (NIL) policies.
According to the lawsuit, filed in U.S. District Court for the Eastern District of Tennessee on Wednesday, the NCAA has been “artificially depressing” the amount of compensation prospective student-athletes can earn through NIL deals and their ability to negotiate those deals.
“This is all about protecting student athletes and prospective student athletes in making sure that they have market sources available to properly value their name, image, and likeness rights [because] the NCAA has a structure that artificially restricts the market in a way that hurts the student athletes,” Skrmetti told The Daily Wire.
“Student athletes are the heart of college sports and everybody else in college sports is getting rich, and the student athletes are getting left behind because of the lack of competition for their name, image, and likeness rights. That’s illegal and it’s not fair. It’s not right,” he added.
The lawsuit is aimed at rules from the NCAA that limit the ability of prospective student athletes to negotiate NIL rights. According to the suit, these rules harm athletes “at a critical juncture in the recruiting calendar.”
The lawsuit says that the rule “bans prospective college athletes (including current college athletes looking to transfer to another school who are in the ‘transfer portal’) from discussing potential NIL opportunities before they actually enroll. It’s like a coach looking for a new job, and freely talking to many different schools, but being unable to negotiate salary until after he’s picked one (the depressive effect on coaches’ wages in such a dysfunctional market is obvious).”
The NCAA has said the rules act as necessary protections for student athletes after they were first allowed to pursue such deals in 2021.
Skrmetti said that the issue came to his attention last year after there was concern that the NCAA might institute a postseason ban for the University of Tennessee football team after recruiting violations that occurred under a former coach. He said the bowl ban would have harmed the NIL rights of the students who were not connected to the infractions.
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“Student-athletes generate massive revenues for the NCAA, its members, and corporations within the college sports industry, especially in football and basketball,” Miyares said in a statement. “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.”
Skrmetti said that the suit wasn’t directed to protect any specific institution, but was about the rights of student athletes and the principle that “concentrated power causes harm.”
“I’m not for, necessarily, the Wild West of unregulated college sports, but what we have now is such an inconsistent and arbitrary and unfair system, there has to be some deep change to make sure that it both comports with the law and is doing right by student athletes,” he said.