Tennessee, Virginia AGs file federal lawsuit against NCAA following NIL investigation into Vols

Attorney generals from the states of Tennessee and Virginia filed a federal lawsuit against the NCAA on Wednesday in the aftermath of the Name, Image, Likeness investigation on the Tennessee Volunteers football program, according to college football insiders Ross Dellenger and Pete Thamel.

The 20-page complaint was filed to the US District Court for the Eastern District of Tennessee Wednesday morning and is centered around the NCAA’s current rule that prevents recruits, high school or from the transfer portal, from discussing or entering Name, Image, and Likeness dealings prior to their enrollment.

The lawsuit states these ‘protections’ allow student-athletes to pursue NIL, but prevent high school and transfer portal prospects from doing so before they enroll into a program. Comparing the rule to a coach looking for a new job but not being able to negotiate salary.

“These “protections” allow current athletes to pursue NIL compensation,” the lawsuit reads. “But it bans prospective college athletes (including current college athletes looking to transfer to another school who are in the “transfer portal”) from discussing potential NIL opportunities before they actually enroll. It’s like a coach looking for a new job, and freely talking to many different schools, but being unable to negotiate salary until after he’s picked one (the depressive effect on coaches’ wages in such a dysfunctional market is obvious).”

The lawsuit references the Sherman Antitrust Act, which prescribes the rule of free competition among those engaged in commerce, claiming that the current NCAA rules interfere with athletes’ ability to earn NIL compensation. Also accusing the NCAA of ‘thumbing its nose at the law’ and stopping the NIL ‘market from functioning’ following the nationwide legalization of NIL for student-athletes on July 1, 2021.

Tennessee Attorney General Jonathan Skrmetti and Virginia Attorney General Jason Miyares are taking the NCAA to court with hopes of loosening the current framework surrounding NIL regulations that they believe unfairly limits student-athletes. Shutting out high school and transfer portal recruits from participating and negotiating in NIL dealings before enrolling or signing a letter of intent with a program.

Through the lawsuit, Skrmetti and Miyares are requesting a TRO (temporary protective order), a preliminary injunction, and a permanent injunction that bars the NCAA from enforcing the NIL recruiting ban the permits high school and transfer portal prospects from engaging in meaningful NIL discussions prior to enrollment. Also requesting an order from a judge that declares the NCAA’s NIL-recruiting ban as a violation of section 1 of the Sherman Act.

The antitrust lawsuit follows the current investigation on the University of Tennessee surrounding alleged NIL violations across multiple sports including football. Largely centered around the the program’s NIL collective’s involvement in the recruitment of quarterback Nico Iamaleava.