The NCAA has entered into a consent judgment with the States of Tennessee, New York, Florida, the Commonwealth of Virginia, and the District of Columbia. The consent judgment resolves a lawsuit that has been proceeding by those states against the NCAA in the Eastern District of Tennessee.
The consent judgment addresses certain name, image, and likeness (NIL) opportunities for prospective and transferring student-athletes. The rules changes described below are effective immediately.
- The consent judgment applies to commercial NIL opportunities in which student-athletes receive payment for promoting or endorsing goods and services available to the general public.
- The consent judgment allows prospective and transferring student-athletes to discuss, negotiate, and enter contracts for commercial NIL opportunities with third parties before enrolling at a Division I NCAA member institution.
- The NCAA has agreed not to impose any penalties on prospective or current student-athletes, or NCAA member institutions, for previously having engaged in the conduct permitted by the consent judgment.
- Going forward, NCAA member institutions can provide prospective and transferring student-athletes with support and assistance regarding potential commercial NIL opportunities.
The consent judgment does not address discussions and negotiations with prospective and transferring student-athletes about compensation for athletic performance, athletic achievement, or for work that has not been and will never be performed. Those forms of compensation remain prohibited by NCAA rules. The consent judgment also does not itself disturb the proposed House settlement.
