NCAA Settles Lawsuit with Tennessee, Drops Recruiting NIL Ban

The NCAA has once again been forced to retreat in its ongoing battle to regulate name, image, and likeness (NIL) rights, this time settling a lawsuit with the attorneys general of Tennessee, Virginia, and several other states.

The agreement, which was announced in a federal court filing on Friday, effectively cements a permanent injunction against the NCAA’s ability to enforce NIL restrictions on recruiting—marking another major blow to the organization’s already diminished control over college athletics.

The settlement, which must be finalized by March 17, prevents the NCAA from reviving its NIL recruiting ban and guarantees that college athletes will retain the ability to negotiate NIL deals as part of their recruitment.

The case, originally filed in January of 2024 by Tennessee and Virginia, was sparked by the NCAA’s investigation into the Tennessee Volunteers recruitment practices, specifically surrounding a private flight used to transport quarterback Nico Iamaleava to Knoxville.