Wednesday, October 14, 2026

State Legislators Argue Existing Laws Conflict With House v. NCAA Settlement Terms

A group of lawmakers say the proposed cap on revenue-sharing and NIL clearinghouse violate multiple existing state laws.

Ken Ruinard/Imagn Images

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

The House v. NCAA settlement proposal faces opposition from multiple state lawmakers.

On Thursday, a group of state legislators released a joint statement saying their state laws directly conflict with the terms of the settlement. The lawmakers made the statement in conjunction with the National College Players Association, the college athlete advocacy organization that has worked with state lawmakers on name, image, and likeness (NIL) legislation for several years.

“We worked hard to adopt NIL laws specifically to end the NCAA and conferences’ unjust NIL restrictions imposed on college athletes in our states. Our state NIL laws passed with overwhelming bipartisan support,” State Sen. Nancy Skinner (D., Calif.), Sen. Megan Hunt (I., Neb.), State Sen. James Manning Jr. (D., Ore.), and State Steven Bradford (D., Calif.) said. “Terms in the preliminary settlement in House v. NCAA attempt to allow the NCAA and conferences to restrict our college athletes’ freedom.” 

The settlement, which could receive the final stamp of approval from a judge in April, allows for the NCAA and former Power 5 conferences to pay $2.8 billion in damages to athletes who couldn’t receive NIL earnings before 2021. It also creates a template for revenue-sharing, allowing schools to share up to a certain amount with players in their athletic department every year. 

But it also places new restrictions on NIL. It would allow a third party to run a “clearinghouse” with the ability to block any NIL deals offered by boosters or collectives offering “fair-market value” for NIL activities, like endorsements or autograph signings. The goal is to prevent deals they see as “pay-for-play.” 

The state lawmakers said that the cap on revenue-sharing as well as the NIL clearinghouse violate multiple state laws. They also note that, because the states themselves aren’t parties to the lawsuit, they’re not bound to its terms.

They are urging schools to consider state laws when putting together their future compensation strategies. They also said they are sending letters to universities that “clarify that, even if this settlement is granted final approval, our universities, conferences, and the NCAA are prohibited from imposing such NIL restrictions on athletes and universities in our state.”

At least 17 states—including Michigan, California, New York, and Ohio—prohibit “restrictions on athletes’ freedoms to earn NIL compensation from collectives as described in the settlement,” according to NCPA executive director Ramogi Huma. Four states also already have laws that let schools pay players already.

The NCAA is working to stop this dynamic with a lobbying campaign to get Congress to codify the terms of the settlement, and therefore override these state laws. The governing body also hopes to insert a provision stating athletes cannot be classified as employees.

Huma, meanwhile, tells Front Office Sports he is working with lawmakers to pass similar state laws. But he notes, “Unless the NCAA can enforce NIL restrictions on all universities, it won’t enforce NIL restrictions on any universities. The universities in the other states aren’t going to be handcuffed while universities in other states are free. We’ve seen this dynamic since July 2021. Even states with no NIL laws had athletes engaging in NIL activities.”

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Pablo Torre: More Coming on Clippers, Life Surge … and LeBron?

LeBron’s relationship with Fanatics allows him to use its helicopter.

LPGA Commissioner: Good Good Driver Ad ‘Brutal’ Situation

Kessler said people should be allowed to make mistakes and ask for forgiveness.

Chris Berman: Damar Hamlin Incident Slowed NFL 18-Game Push

The NFL declined to comment on Berman’s comments.

MLS Not Looking Into NYCFC Owners Over Man City Violations

Manchester City was found guilty of breaching Premier League financial rules.
podcast thumbnail mobile
Front Office Sports Today

10/13/26 – Quinn On Hot Seat, Dream’s Arena Crunch, FOS “Tuned In” Preview

0:00

Featured Today

Oct 5, 2026; Pittsburgh, Pennsylvania, USA; Pittsburgh Penguins general manager Kyle Dubas arrives at the arena before the Penguins host the Winnipeg Jets at PPG Paints Arena

NHL’s New Wave of GMs Is Built Different

“I am in the prediction business,” Devils GM Sunny Mehta tells FOS.
Action Images/Peter Cziborra
October 9, 2026

Is Leicester City’s $264 Million Price Tag Too Rich for Hungry Investors?

After falling from grace, how much is a former top club worth?
Oct 3, 2026; Starkville, Mississippi, USA; Alabama Crimson Tide head coach Kalen DeBoer waits to run onto the field prior to the game against the Mississippi State Bulldogs at Davis Wade Stadium at Scott Field. Mandatory Credit: Petre Thomas-Imagn Images
October 7, 2026

Who Is Alabama Football in Year 3 Under Kalen DeBoer?

The No. 6 Crimson Tide host No. 2 Georgia on Saturday.
Cubs behind the scenes
October 6, 2026

Hollywood and TikTok: Sports Media’s New ‘Blueprint’

Teams and leagues are pouring money into the quest for fans.
October 2, 2026

How the Baseball Cap Became a ‘Behemoth’

The hat has become essential for athletes, fans, and the sports-agnostic.

Ohio Gov. Issues Executive Order Challenging NCAA Eligibility Policy

The EO may not have teeth, but it could still impact eligibility.
Dec 20, 2025; Eugene, OR, USA; James Madison Dukes quarterback Alonza Barnett III (14) rushes during the fourth quarter against the Oregon Ducks at Autzen Stadium
October 12, 2026

James Madison Joins the American Before Sun Belt Exit Fees Rise

JMU’s move beats a pending vote on higher Sun Belt exit fees.
October 13, 2026

Josh Pate, John Fanta Blast CFP Expansion: ‘Why Stop at 24?’

The deadline for College Football Playoff expansion in 2027 is Dec. 1, 2026.
Sponsored

Beyond the Scorecard: How Dow Is Putting Purpose at the Center of Women’s Golf

Discover how Dow and the LPGA are building a partnership with lasting impact.
October 12, 2026

Kentucky Will Pay LSU $500K SEC Field-Storming Fine

The SEC changed its fine policy ahead of the 2025 football season.
October 10, 2026

Belichick, UNC Score Biggest Win Yet After Rocky Offseason

Belichick’s revamped UNC roster is beginning to show signs of progress.
Marina Williams-Walter Cronkite Sports Network
October 10, 2026

ASU Hockey Home Opener Marred by Player Collapse Fallout

ASU’s hockey home opener featured more absences amid an ongoing investigation.
October 9, 2026

Georgia-Alabama Braces for Hurricane, Trump Won’t Attend

Alabama banned tailgating and all outdoor activities on campus before noon.