• Loading stock data...
Monday, February 17, 2025

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.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Steph Curry
exclusive

3 Changes Being Discussed for 2026 NBA All-Star Weekend

Ideas include an earlier start time and a one-on-one competition. 
Feb 15, 2025; Montreal, Quebec, CAN; [Imagn Images direct customers only] Team United States forward Dylan Larkin (21) plays the puck and Team Canada forward Nathan MacKinnon (29) defends in the first period during a 4 Nations Face-Off ice hockey game at the Bell Centre

NHL Has Huge Ratings Hit With U.S.-Canada 4 Nations Face-Off

The ratings mark a massive hit for the league’s new event.
Feb 15, 2025; San Francisco, CA, USA; Osceola Magic guard Mac McClung competes in the slam dunk competition during All Star Saturday Night ahead of the 2025 NBA All Star Game at Chase Center

Mac McClung’s Dunk Contest Winnings Eclipse His NBA Guaranteed Salary

The three-time dunk contest champion has played just five career NBA games.
Feb 15, 2025; Montreal, Quebec, CAN; [Imagn Images direct customers only] Team United States forward Matthew Tkachuk (19) and Team Canada forward brandon Hagel (38) fight in the first period during a 4 Nations Face-Off ice hockey game at the Bell Centre.

Inside the Push for the NHL’s Next Era of International Competition

Players have been clamoring, and the league is all in.

Featured Today

Feb 18, 2024; Indianapolis, Indiana, USA; Eastern Conference guard Damian Lillard (0) of the Milwaukee Bucks reacts after a play during the second half of the 73rd NBA All Star game at Gainbridge Fieldhouse.
February 15, 2025

The NBA’s Latest Attempt To Solve the All-Star Game Conundrum

A new mini-tournament on a lame-duck network may not solve the problem.
Jan 9, 2025; Pittsburgh, Pennsylvania, USA; Edmonton Oilers center Connor McDavid (97) checks Pittsburgh Penguins center Sidney Crosby (87) during the third period at PPG Paints Arena
February 11, 2025

‘Important’ 4 Nations Face-Off Can Be NHL’s All-Star Antidote

“The stars have been lobbying the league for an event like this.”
Brady and Mahomes
February 8, 2025

Chiefs Fatigue Is Real. It’s Nowhere Near Patriots Hate Yet

People who have covered both teams say the difference is stark.
Texas Longhorns defensive back Jahdae Barron celebrates a turnover against Clemson Tigers in thein the first round of the NCAA College Football Playoffs on Dec. 21, 2024, at Darrell K Royal Texas Memorial Stadium in Austin, Texas.

NBC’s Chris Simms: College Football ‘Messed Up’ With NIL Era

Even with caps on revenue sharing, some schools can still spend more.
February 13, 2025

What Has to Happen Next for Flag Football to Become an NCAA..

Flag football is one step closer to being a full-fledged college sport.
February 14, 2025

Notre Dame Latest CFB Team to Hire GM From NFL

Notre Dame has hired a Lions front office executive.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
February 13, 2025

Players Seek Better Deal With EA Sports College Football

Players will get $1,500 upfront.
February 13, 2025

Caitlin Clark Effect: Lasting Impact on Women’s College Hoops Viewership?

Women’s March Madness starts March 16 with Selection Sunday.
NC State women's cross country
February 12, 2025

Trump Education Department Pulls Biden’s NIL Pay Equity Rule

The Biden Administration had issued the guidance in its final days.
Ashton Jeanty
February 12, 2025

Ashton Jeanty on the Group of 5’s NFL Superpower

To Jeanty, development and playing time can lead to “life-changing” NFL money.