Tuesday, May 26, 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

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.”

This field is for validation purposes and should be left unchanged.

Sign up for
The Memo Newsletter

Get the biggest stories and best analysis on the business of sports delivered to your inbox twice every weekday and twice on weekends.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Pochettino Defends How He Delivered World Cup Roster News

Pochettino said calling players who got cut would’ve been “bullshit.”
PWHL - OTT at BOS- April 30, 2026_11

PWHL Players Publish Every Salary in League

Only 10 players earned six figures, while two-thirds earned less than $60K.
Jan 13, 2025; Glendale, AZ, USA; Minnesota Vikings defensive coordinator Brian Flores against the Los Angeles Rams during an NFC wild card game at State Farm Stadium. Mandatory Credit: Mark J. Rebilas-Imagn Images

Supreme Court Won’t Tackle Arbitration Issue in Flores Case

The decision means Flores’s racial discrimination lawsuit can proceed to trial.
May 24, 2026; Evanston, IL, USA; Northwestern Wildcats attack Kathryn Ratanaproeksa (13) shoots against the North Carolina Tar Heels during the first half at Martin Stadium

Can Women’s Lacrosse Buck the Trend in College Sports?

The sport is fighting to prove its worth in the revenue-sharing era.

Featured Today

Big Money on the Line on Premier League’s Final Day

Arsenal has won the title, but millions are still at stake.
Texas State mascot
May 22, 2026

Mascot-Reveal Videos Are the Newest College Sports Tradition

Student mascot unmasking videos are going mega-viral.
Charlie Pliner and Nikolas Rohrmann
May 22, 2026

How 2 Brown Undergrads Became Sports Dealmakers

An experimental project turned into a permanent course and business deal network.
May 14, 2026

NFL Rivalries Are Made on the Field, Mocked in Schedule Release Videos

Every year, teams find new ways to one-up themselves (and their rivals).
Florida head coach Jon Sumrall speaks after spring practice at Sanders Practice Fields in Gainesville, FL on Tuesday, April 7, 2026. [Alan Youngblood/Gainesville Sun]

No Consensus Among SEC Coaches Over CFP Expansion

“I’m really more worried about the financial burden that we’re under right now.”
May 22, 2026

Southern Schools Silent on Proposed Black Athlete Boycott

The campaign asks Black athletes, fans to boycott several southern athletic departments.
Dec 31, 2025; Orlando, FL, USA; Texas Longhorns quarterback Arch Manning (16) runs with the ball against the Michigan Wolverines during the first half at Camping World Stadium.
May 25, 2026

Sankey: No Decision on CFP Expansion Expected This Week

Sankey said the meeting was the most-anticipated of any in recent memory.
Sponsored

The Hidden Economy of Race Weekend

Learn more about the Vintage Flying Museum and how Spectrum Business is helping them achieve their business goals while fueling their dreams.
Apr 11, 2026; Las Vegas, Nevada, United States; Wisconsin Badgers defenseman Joe Palodichuk (14) and Denver Pioneers forward Kyle Chyzowski (16) battle for control of the puck during the second period in the championship game of the NCAA men's ice hockey Frozen Four at T-Mobile Arena
May 22, 2026

Hockey Unites to Demand Change to NCAA ‘5-in-5’ Proposal

The sport doesn’t want to be “collateral damage” of the new rule.
Dec 21, 2024; Austin, Texas, USA; A view of the CFP logo and SEC logo before the game between the Texas Longhorns and the Clemson Tigers in the CFP National Playoff First Round at Darrell K Royal-Texas Memorial Stadium. Mandatory Credit: Jerome Miron-Imagn Images
May 21, 2026

SEC Holds Cards to 24-Team College Football Playoff

CFP expansion will be a major topic at the SEC spring meetings.
Nov 12, 2022; New Orleans, Louisiana, USA; LSU Tigers former head coach Ed Orgeron watches a game between the Tulane Green Wave and the UCF Knights from the sidelines at Yulman Stadium.
May 21, 2026

Ed Orgeron Returns to LSU After Years of Scandals

LSU fired Orgeron in 2021, two years after he won a national championship.
May 20, 2026

Will Wade’s LSU Is Pushing College Basketball to the Absolute Limit

The notorious coach has assembled a team of international pros.