More states join Tennessee vs NCAA in NIL federal lawsuit

Florida, New York and the District of Columbia have joined the state of Tennessee’s antitrust lawsuit against the NCAA regarding its name, image and likeness rules.

Virginia was already on board in a suit that’s reshaped NIL rules for virtually every high school and college athlete across the country in the past few months.

The addition of two states and D.C. was eye-opening in the plaintiff’s amended complaint, filed Wednesday in the Eastern District of Tennessee federal court.

“We're glad to keep fighting to protect student-athletes from illegal NCAA rules. I welcome the addition of our bipartisan partners to the case," Tennessee Attorney General Jonathan Skrmetti said in a statement.

“The ultimate goal is to get the lawyers out of this and let student-athletes compete under fair and clear rules, but in the meantime, we’ll do our part to move things in the right direction.”

Why Florida joined the NIL lawusit

Florida joining the suit is especially notable because Florida State University and the University of Florida were two of the early targets of the NCAA in NIL-related investigations.

On Jan. 11, the NCAA penalized Florida State because an assistant football coach facilitated an impermissible contact between a transfer prospect and an NIL collective.

The NCAA put Florida State on two years probation, reduced its football scholarships and issued a disassociation from the NIL collective.

On Jan. 20, it was reported that that NCAA was investigating the University of Florida for its recruitment of quarterback Jaden Rashada.

Rashada switched his commitment from Miami to Florida, whose collective reportedly offered him a $13 million NIL deal. But that agreement fell through, which led to the ongoing NCAA probe and Rashada signing with Arizona State. Rashada recently committed to transfer to Georgia for the 2024 season.

The amended complaint references both NCAA investigations into those Florida schools, along with a probe into the University of Tennessee, which came to light on Jan. 30.

Skrmetti said news of an NCAA investigation into the UT signaled him to file the suit. He saw a fight in his own backyard and joined in.

In February, Florida Attorney General Ashley Moody’s office did not respond to a Knox News request for comment about why Florida hadn’t joined the suit.

But in this new filing, Moody is listed as a plaintiff.

Where case stands and how athletes could be paid in future

The states already earned a major victory when a federal judge granted a preliminary injunction on Feb. 23, which suspended NCAA rules on NIL benefits for athletes.

The decision applies until the court case plays out. And the ruling covers the entire country, preventing the NCAA from enforcing its NIL rules against any school and giving student-athletes latitude on signing deals.

The case lies ahead. But the NCAA already has retreated.

On March 1, the NCAA paused all investigations related to NIL, including its probe into UT.

And college sports leaders are exploring ways to share revenue with athletes in the future, ESPN reported, as part of a separate federal antitrust lawsuit regarding NIL.

That case, House vs. NCAA, is scheduled to go to court in January 2025. ESPN reported that the NCAA and its schools could pay more than $4 billion in damages if they lose.

That possibility has motivated college sports leaders to seek a settlement, including revenue sharing. It could finally stabilize the NIL space and larger question about paying college athletes.

Adam Sparks is the Tennessee football beat reporter. Email adam.sparks@knoxnews.com. X, formerly known as Twitter@AdamSparks. Support strong local journalism by subscribing atknoxnews.com/subscribe.

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This article originally appeared on Knoxville News Sentinel: More states join Tennessee vs NCAA in NIL federal lawsuit

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