Wednesday, November 4, 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

Pickering High School North

High School Athletic Directors Say They’re Running ‘Mini Colleges’

ADs are managing a growing list of demands from athletes and parents.

Michele Tafoya Loses Senate Race Amid Nationwide Democratic Rout

Tafoya came up short against Democratic Lt. Gov Peggy Flanagan.

Pro Sports Owners Back GOP in Senate Battleground Races

Nine key races Tuesday will decide control of the Senate.
podcast thumbnail mobile
Front Office Sports Today

11/4/26 – MLB Wants to Delay Salary Cap, WNBA Finals Record, What’s Next for ‘PTI’?

0:00

Featured Today

How Injuries Hit Pro Marathoners in the Wallet

Staying healthy can get expensive—quickly.
Football - NFL - Houston Texans v Jacksonville Jaguars - Wembley Stadium, London, Britain - October 18, 2026 The necklace of a Jacksonville Jaguars fan outside the stadium before the match
October 21, 2026

Die-Hard Sports Fandom Has Reached the Afterlife

Will fans pay $6,000 to memorialize their team loyalty?
October 20, 2026

Why Europe Is Pumping Out NBA Superstars

The NBA and NCAA have an increasingly European flavor.
October 15, 2026

College Flag Football Is Outgrowing Its DIY Era

Women have been building the college game themselves at the club level.
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
October 12, 2026

NHL’s New Wave of GMs Is Built Different

“I am in the prediction business,” Devils GM Sunny Mehta tells FOS.

Syracuse AD Wants Basketball Powerhouse to Prioritize Football

Syracuse hosts Clemson this weekend with ACC Network’s pregame show in town.
November 2, 2026

College Basketball Returns to the Court After Chaotic Offseason

The Tigers were at the center of NCAA eligibility drama.
Jan 19, 2026; Miami Gardens, FL, USA; ESPN personality Rece Davis interviews Indiana Hoosiers head coach Curt Cignetti after the College Football Playoff National Championship game against the Miami Hurricanes at Hard Rock Stadium. Mandatory Credit: Sam Navarro-Imagn Images
November 3, 2026

ESPN’s CFP Rankings Show Returns Amid Scrutiny, New Criteria

Six two-loss SEC teams will test how the committee weighs schedule strength.
Sponsored

How Jeremy Bloom Is Reinventing the X Games

Jeremy Bloom discusses transforming the X Games into a global brand.
November 2, 2026

Geno Auriemma Laments Explosion of Sports Gambling

Auriemma has won 12 national championships with the Huskies.
November 1, 2026

Florida State’s Norvell Fired With $50M Left on Contract

It’s the third-highest buyout in college football history.
November 1, 2026

Miami Tops Last AP Poll Before Initial CFP Rankings

The ACC, Big Ten, and Big 12 each have one undefeated team.
October 31, 2026

Robert Griffin III Says He’s Spoken With Baylor About Coaching Job

The former Heisman winner says college coaching is about being a CEO.