Tennessee and Virginia sue NCAA over NIL

Submitted by Blue@LSU on January 31st, 2024 at 11:02 AM

It looks like the Tennessee and Virginia Attorneys General (or is it Attorney Generals?) filed a lawsuit alleging antitrust violations against the NCAA. This comes one day after one day after it was announced that the University of Tennessee received a Notice of Allegations from the NCAA for violations of NIL guidelines.

From this source:

The lawsuit filed in the Eastern District of Tennessee claims the NCAA is “enforcing rules that unfairly restrict how athletes can commercially use their name, image and likeness at a critical juncture in the recruiting calendar."

“These anticompetitive restrictions violate the Sherman Act, harm the States and the welfare of their athletes, and should be declared unlawful and enjoined.”

“Student-athletes generate massive revenues for the NCAA, its members, and corporations within the college sports industry, especially in football and basketball,” said Attorney General Miyares. “Student athletes should have more freedom over negotiating and earning money for their skills and ability. Colleges and universities benefit dramatically from the success of their student athletes - it’s only fair that student athletes also get the full picture of how they may benefit from their choice of school as well.” 

I'm not a lawyer, but this temporary injunction that UT is seeking looks like it could be significant:

The suit alleges that the NCAA has violated antitrust laws by denying athletes their ability to earn full compensation for their names, images and likenesses. The plaintiffs -- including the attorneys general of Tennessee and Virginia -- may, in a matter of days, seek a temporary injunction that could suspend the NCAA's NIL rules and limitations. 

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Amazinblu

January 31st, 2024 at 11:26 AM ^

I don't know exactly what contributes to the NCAA's budget - but, March Madness is a very notable revenue source.    Something was written a few months ago about players wanting to "get a piece" of March Madness revenues - and, the figure I recall was in the "$ 750M" range.

The current agreement with the NCAA to broadcast March Madness is approximately $770M annually and the contract is set through 2032.

So, there's a potenital liability on the horizon for the NCAA.

Joined: 01/22/2010

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Amazinblu

January 31st, 2024 at 11:15 AM ^

"The suit alleges that the NCAA has violated antitrust laws by denying athletes their ability to earn full compensation for their names, images and likenesses."

I haven't read the entire link - but, are they inferring that the NCAA guidelines (which are very broad & subjective, while also seemingly are superceded by certain state's laws) are interfering with Trade or are negatively impacting student athletes in some way?

We're all familiar with inducements - an Ole Miss prospect arriving in a Lambo before he's signed his LOI.  Or, allegedly at Florida where a propsect was provided an estimated $13M NIL deal but it appears the collective did not hold up their end of the bargain?

It seems to me that the "East" - if you describe Virginia and Tennessee as "East" schools - wish to make the Wild, Wild West - even wilder.  

I'm very supportive of NIL and student athletes being compensated for Name, Image, and Likeness.  The interpretation I have of this is - Revenue Sharing.   Or - are these schools indicating the student athletes should be "paid / compensated" by the universities themselves for the impact they have on athletic department revenues.

Joined: 01/22/2010

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Amazinblu

January 31st, 2024 at 11:42 AM ^

I don't believe that Virginia has been made aware of an NOA regarding their program.

Regarding this issue - from the AP article on this.. "“Instead, 2 1/2 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,” Plowman wrote. “In short, the NCAA is failing.”

The first word hat comes to mind regarding NIL is Inducement.   Regarding the Portal - it's Tampering.

The approach being taken in Columbus seems to be - "the best team money can buy".  It doesn't seem to me that the Buckeyes are alone - you can toss in the entire SEC for starters - Oregon's Phil Knight connection certainly draws attention too.

Joined: 01/22/2010

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Jkidd49

January 31st, 2024 at 11:28 AM ^

"if the schools don't like it they should just change the NCAA" kind of depends on where the masses are.  Yes of course the schools getting caught hate the NCAA but you gotta figure there are a TON of other schools constantly getting robbed and tampered with that are certainly happy to have the NCAA throw some weight around.

Joined: 01/30/2012

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Amazinblu

January 31st, 2024 at 11:35 AM ^

One of the key items here is the NCAA's approach to "selective enforcement" of their guidelines.

After all - thinking that someone hasn't been "completely forthcoming" about a couple of burgers from the Brown Jug - could be an L1 violation.  While spending $800K for a propect's OV is perfectively fine.

The biggest issue, IMO - is the "judge, jury, and executioner" that the NCAA plays.   THAT is what is beyond control - and understanding.   It seems enforcement is selective and subjective - with limited power to appeal.

Joined: 01/22/2010

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1VaBlue1

January 31st, 2024 at 12:00 PM ^

"..."completely forthcoming" about a couple of burgers from the Brown Jug - could be an L1 violation.  While spending $800K for a prospect's OV is perfectly fine."

When is someone with a national mouth outlet going to say this?  To date, even at the height of signgate and burger gate, nobody on a national level has made this comparison.  It's only been made in the echo chamber of Michigan fandom.

Perhaps if Warde had half an inclination to publicly support his coaches he could have mentioned this at some point during the last season.  You know, when his football team was the most powerful football team in the entire country and everyone was listening.  But noooo....  Warde can't publicly support his coaches.  He never has...

 

(Yeah, there was that one time, when Speight's neck was broken and he was literally transported in the front seat of a passenger van...)

Joined: 01/31/2016

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Amazinblu

January 31st, 2024 at 1:04 PM ^

I also wonder if there will be any decision / direction from the NCAA regarding sideline to helmet communications.   It's standard in the NFL and many high schools already deploy it too.

I wonder what - if anything - wil actually be stated in a new NCAA rule / guideline on this topic.

Joined: 01/22/2010

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lhglrkwg

January 31st, 2024 at 11:35 AM ^

I dont know the merits of Tennessee's case or their likelihood of success, but it feels like they know they're gonna get obliterated by the NCAA if they don't fight it full bore. Havent they had a pile of major violations in the last decade? They probably have to fight it as hard as possible or the NCAA's gonna make a major example out of them

Joined: 07/03/2008

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bronxblue

January 31st, 2024 at 11:41 AM ^

It'll be interesting to see what the courts come down with - NIL has been a bit of a wild west for years in part because these private contracts between athletes and brands don't get a ton of scrutiny as it relates to actual value and responsibilities.  But if states want to claim that the NCAA's rules severely restrict said athletes' abilities to maximize their value, you might see a deeper look into these deals to see if they are appropriate.  

I think the comparisons to the lawsuit related to transfer rules is telling but also a bit distinct from this case - with the prior you're arguing more about freedom of movement as it relates to academic pursuit, which is an easier sell (I think) for the public.  But the NCAA saying "there need to be some rules and regulations around these contracts athletes sign" isn't a cut-and-dry, especially if the ones we're arguing over are clearly just pay-to-play deals that also seemingly don't always pay out as expected.

Joined: 11/22/2008

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njvictor

January 31st, 2024 at 11:57 AM ^

Is anyone else noticing the night and day reaction to these scandals vs the Stalions stuff? It's crazy how the narrative put out there by the media and teams involved can drastically alter how the public perceive what is considered cheating and how they should feel about it. I do kinda have to give props to OSU for how insanely well orchestrated their ploy was

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Perkis-Size Me

January 31st, 2024 at 12:00 PM ^

I do wonder if Michigan state government would've responded this way if half of it wasn't comprised of petty MSU alums who were crying from the hilltops about cheating and player safety. 

The NCAA is like a bully who's truly a spineless coward at heart. Once you push back and show them you're ready to shove their face in the dirt, they'll back off. But if you roll over and just give them your lunch money like Michigan seems so eager to do? Tomorrow they're going to want your backpack, your shoes and the answers to this week's math homework. They're going to come after you over and over again. Not because they are a responsible governing authoritative body.

Its because BECAUSE YOU LET THEM. 

 

Joined: 11/30/2011

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CLord

January 31st, 2024 at 12:06 PM ^

The current state of NIL is a joke.  In the pro's, players are paid by the very people who are enriched by their play.  But in college? The NCAA is enriched, media is enriched and universities are enriched, but somehow they are the very ones NOT allowed to pay the players, and it has to come from third party foundations paid for by third party fans, while NCAA, media and schools laugh all the way to the bank.

Joke.

Joined: 09/11/2011

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detroit_fan

January 31st, 2024 at 12:18 PM ^

THIS is how a state/school that’s serious about winning and has a backbone does business. Unlike UM trying to appease these ncaa idiots, and acting like we’re still in the 20th century where players aren’t paid to pay, and the ncaa still means something. 

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