NIL recruiting compensation to be allowed by NCAA under terms of proposed settlement

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Athletes who are being recruited by NCAA schools will now have the ability to negotiate name, image and likeness (NIL) compensation under the terms of a proposed settlement of an antitrust lawsuit brought by the states of Tennessee and Virginia against the NCAA in 2024.

If approved by a judge, the NCAA will stop enforcing rules prohibiting NIL from being used as a recruiting inducement. The NCAA also will not adopt any new rules banning NIL in recruiting.

The changes come after a federal lawsuit was filed in January 2024 by the attorneys general of Tennessee and Virginia after an NCAA inquiry into potential recruiting/NIL violations surrounding Volunteers quarterback Nico Iamaleava. He was a five-star recruit whose multi-million-dollar recruiting process drew national attention. Florida, New York and the District of Columbia eventually joined in the suit against the NCAA.

In February 2024, a federal judge sided with the states, granting a preliminary injunction that kept the NCAA from enforcing its rules. The state and association announced in January that they were settling the case before filing the proposed terms Monday.

“I’m glad to see the NCAA give up on defending a world that no longer exists,” Tennessee attorney general Jonathan Skrmetti said in a statement. “I…

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