NCAA releases statement after Tennessee, Virginia file lawsuits related to NIL rules

The NCAA has released a statement after two state attorneys general — Tennessee and Virginia — filed a lawsuit related to NIL rules. The suit comes just one day after news broke of an NCAA investigation into Tennessee for alleged NIL violations and a strong response from chancellor Donde Plowman.

Tennessee attorney general Jonathan Skrmetti and Virginia attorney general Jason Miyares filed the lawsuit in the Eastern District of Tennessee, challenging the NCAA’s rules about NIL and recruiting. Under current rules, NIL collectives cannot be involved in the recruiting process, and the lawsuits argue the NCAA doesn’t have the right to restrict student-athlete compensation.

In its statement, the NCAA argued the lawsuits would worsen the feelings of a “Wild West” sense around the NIL landscape, and it will continue to “protect and expand student-athletes’ NIL rights and opportunities.”

The NCAA has released a statement on today's lawsuit filed by TN and VA challenging the NCAA's NIL rules.

"This legal action would exacerbate what our members themselves have frequently described as a 'wild west' atmosphere."https://t.co/GGW0bmQYAd pic.twitter.com/ykn5wactOG

— Pete Nakos (@PeteNakos_) January 31, 2024

“While the NCAA generally does not comment on specific infractions cases, it is important to remember that NCAA member schools and conferences not only make the rules but routinely call for greater enforcement of those rules and holding violators accountable,” the statement read. “In recent years, this has been especially true as it relates to establishing and enforcing a consistent set of national rules intended to manage the name, image and likeness environment. This legal action would exacerbate what our members themselves have frequently described as a ‘wild west’ atmosphere, further tilting competitive imbalance among schools in neighboring states, and diminishing protections for student-athletes from potential exploitation.

“The NCAA remains firmly committed to protecting and expanding student-athletes’ NIL rights and opportunities. However, our membership has steadfastly supported the prohibition on impermissible recruiting contacts, booster involvement in recruiting prospects and the use of NIL offers as recruiting inducements.”

Tennessee chancellor Donde Plowman slammed the NCAA’s NIL rules in a letter to president Charlie Baker

The NCAA’s investigation into Tennessee is the latest in a string of inquiries related to alleged NIL violations. Sports Illustrated first reported the inquiry into multiple sports and “major” violations, and The New York Times added part of the inquiry was into the recruitment of Nico Iamaleava.

According to the Times, Iamaleava allegedly traveled on to Knoxville on a private plane that was funded by boosters. His recruitment was a high-profile one as he agreed to a landmark NIL deal, which The Athletic reported could be worth up to $8 million.

In a letter to the NCAA obtained by Volquest, Tennessee chancellor Donde Plowman fiercely defended the university’s process and said president Charlie Baker denied a request for an in-person meeting about the issues.

“The leaders of intercollegiate athletics owe it to student-athletes and their families to establish clear rules and to act in their best interest,” the letter read in part. “Instead, two and a half years of vague and contradictory NCAA memos, emails and ‘guidance’ about name, image and likeness (NIL) has created extraordinary chaos that student-athletes and institutions are struggling to navigate.

“In short, the NCAA is failing.”

Tennessee isn’t the only university under investigation

In addition to the investigation into Tennessee, the NCAA recently came to an agreement on punishments against Florida State and is looking into alleged NIL violations at Florida. In FSU’s case, the NCAA notably suspended offensive coordinator Alex Atkins for three games and handed down a two-year show cause after he allegedly drove a recruit to meet with an NIL collective during a visit.

Just over a week later, news broke of an investigation into Florida, particularly regarding the recruitment of Jaden Rashada. His recruitment took a few turns, On3 reported at the time. He said his plans were to arrive on campus in January 2023 with the early enrollees, but he ended up missing the add/drop period. Florida then granted his request for his release from his National Letter of Intent, allowing him to eventually sign with Arizona State.

Collectives continue to play a major role in the college athletics space, particularly when it comes to retaining talent. The lawsuits allege the NCAA is violating antitrust laws because of the limits on NIL deals, and Skrmetti said that should be left up to Congress.

“Student-athletes are entitled to rules that are clear and rules that are fair,” Skrmetti said in a statement. “College sports wouldn’t exist without college athletes, and those students shouldn’t be left behind while everybody else involved prospers. The NCAA’s restraints on prospective students’ ability to meaningfully negotiate NIL deals violate federal antitrust law. Only Congress has the power to impose such limits.”

Pete Nakos contributed to this report.