Breaking News: The Vols are being investigated; two states are suing the NCAA.
In response to the NCAA’s probe into University of Tennessee, the attorneys general of Virginia and Tennessee launched an antitrust action against the organization on Wednesday, challenging its prohibition on the use of name, image, and likeness payments in college athlete recruitment.
In an attempt to circumvent NCAA regulations prohibiting recruiting inducements, a lawsuit was filed in the Eastern District of Tennessee. The lawsuit alleges that the NCAA is “enforcing rules that unfairly restrict how athletes can commercially use their name, image, and likeness at a critical juncture in the recruiting calendar.”
“These anticompetitive measures need to be ruled illegal and enjoined because they hurt the States, their athletes’ welfare, and the Sherman Act.”
Following up, Virginia’s Jason Miyares and Tennessee AG Jonathan Skrmetti asked the court by February 6 for a preliminary injunction and temporary restraining order, which would stop the NCAA from implementing NIL recruiting regulations while the litigation is pending.
In a statement, the NCAA defended the enforcement of its member schools’ recruiting policies while avoiding a direct reference to the Tennessee probe.
“This legal action will further tilt the competitive imbalance among institutions in nearby states and undermine protections for student-athletes from possible exploitation, as our members have regularly stated.” said the NCAA. “The NCAA is still adamant about defending and enhancing the NIL rights and possibilities of student-athletes. But our membership has consistently backed the ban on improper recruiting contacts, booster engagement in prospect recruitment, and the use of non-refundable offers as recruiting bribes.”
The University of Tennessee’s chancellor blasted the NCAA for looking into possible recruiting infractions involving NIL deals made between athletes and a booster-funded organization that allows Volunteers athletes to profit from their notoriety the day before the NCAA launched its most recent legal assault.
In addition to being named as a defendant in antitrust lawsuits that target the employment status of athletes and the billions of dollars in television revenue that colleges and conferences receive from major college sports, the NCAA is already facing legal action from a group of state attorneys general challenging the association’s transfer rules.
College sports executives and NCAA President Charlie Baker have been asking with federal lawmakers to regulate NIL remuneration and provide an antitrust exemption, which would free up the organization to rule without having to face legal action all the time.
A set of NIL rules intended to shield players from possible scammers and increase market transparency were approved by the NCAA earlier this month.
In the meanwhile, Baker is advocating for regulations to be changed so that schools might internalize NIL activities and in certain cases, pay athletes straight out of trust funds.
The NCAA was looking into Tennessee and The Vol Club, a NIL collective owned by Spyre Sports Group, it was reported on Tuesday. The NIL contract that Tennessee signed with Spyre and the recruitment of five-star quarterback Nico Iamaleava from California are two of the transactions that the NCAA is investigating.
Not too long after school administrators met with NCAA representatives to examine the charges earlier this week, Tennessee Chancellor Donde Plowman delivered Baker a stinging letter. According to her, collegiate sports administrators have a duty to act in the best interests of players and their families by establishing clear guidelines, and the NCAA is far from meeting that need.
Plowman’s letter, which was made public on Tuesday, stated, “Instead, 2 1/2 years of ambiguous and inconsistent NCAA memos, emails, and ‘advice’ about name, image, and likeness (NIL) has created incredible turmoil that student-athletes and institutions are having to traverse.” To put it briefly, the NCAA is failing.
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