Wednesday, September 30, 2026
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds

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.”

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

Detroit Cass Tech players warm up ahead of a high school football game against rival Detroit King at Cass Technical High School in Detroit on Friday, Sept. 25, 2026. The Detroit skyline is seen in the background.

Rivals’s $399 Evaluations Test What a Recruiting Ranking Is Worth

Coaches are split on whether rankings still matter in recruiting.

Environmentalists Call MLB Grand Teton Idea ‘Shortsighted’

The league received rare pushback about a potential special-event game.
Texas quarterback Arch Manning (16) during a college football game between Tennessee and Texas at Neyland Stadium in Knoxville, Tenn. on Sept. 26, 2026.

College Football Viewership Down 11% Through September vs. 2025

FBS game broadcasts are averaging 1.7 million viewers.
Exclusive

WPBL CEO Fires Board Member After $600K Offer to Drop Case

The firing effectively ends Mina Kim’s case.
podcast thumbnail mobile
Front Office Sports Today

9/30/26 – Man City Found Guilty, NBA’s $12B Vegas Race, College Sports Bill Passes

0:00

Featured Today

Morishita-Sato-homerun-celebration-at-Meiji-Jingu-Baseball-Staidum-2025

Japanese Baseball Is Fighting Back Against MLB Talent Drain

Nippon Professional Baseball is reimagining how to be a global juggernaut.
Aug 9, 2026; Bedminster, New Jersey, USA; President Donald Trump walks out of the clubhouse during the final round of the LIV Golf New York tournament at Trump National Bedminster.
September 25, 2026

Trump’s Year of Sports Gets Busier With CFB, Presidents Cup

The impact of Trump’s attendance varies across each sporting event.
A Bar of Their Own
September 25, 2026

Women’s Sports Bars: Novelty Has Worn Off, ‘That’s a Good Thing’

They’re leveling up, but sustainability remains the first consideration.
Hot & Social/Mets
September 18, 2026

Sports Teams Are Playing a New Role: Matchmaker

The latest promotion at the stadium? Love.
Exclusive
September 18, 2026

Vicious Infighting Is Jeopardizing the Future of Women’s Baseball

The WPBL’s own CEO admits there’s a “power struggle.”

Ted Cruz: Critics of ESPN ‘College GameDay’ Appearance ‘Partisans’

The Texas Republican defended his appearance in an interview with FOS.
AZ state flag
September 29, 2026

Arizona Lawmakers Join ASU Hockey Players in Call for Outside Review

An independent inquiry has not yet been commissioned by Arizona State.
Arizona State Head Coach Greg Powers watches the season opener against Mercyhurst on Saturday, Oct. 5, 2019.
September 30, 2026

ASU Hockey Coach Greg Powers Put On Leave After Player’s Collapse

The move follows growing public pressure from fans, parents, and lawmakers.
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.
Apr 24, 2026; Salt Lake City, Utah, USA; Utah Mammoth owner Ryan Smith speaks to the media before game three of the first round of the 2026 Stanley Cup Playoffs between the Utah Mammoth and the Vegas Golden Knights at Delta Center.
September 29, 2026

Ryan Smith Says BYU Will Get Windfall When He Dies

“The roster is deep,” he said. “It’s not just me.”
October 14, 2022; Tempe, Ariz; USA; ASU mascot Sparky during a ribbon cutting ceremony at Mullett Arena. Ncaa Hockey Asu Hockey Opening Night At Mullett Arena Colgate At Asu
September 28, 2026

ASU Men’s Hockey Players Dispute School’s Account of Athlete’s Collapse

Seven players requested the coaching staff be put on administrative leave.
September 27, 2026

SEC’s Big-Money Rosters Shake Up College Football Rankings

The top two slots remained unchanged.
September 26, 2026

Illegal Hit on Oregon QB Moore Puts NCAA Targeting Rules Into Focus

Moore was hit in the head and neck while sliding.