The NCPA is issuing a statement to provide clarifications about the House v. NCAA lawsuit settlement after receiving information from Class Co-Counsel (Hagens Berman Sobol Shapiro LLP). The NCPA is retracting it’s December 5, 2024 press release and providing the following clarifications:
1. The NCAA litigation settlement has not been deemed illegal in any way.
2. The settlement does not create any rule that seeks to ban college athletes from receiving NIL compensation from collectives.
In addition, Class Co-Counsel provided the NCPA with confirmations of the following:
1. The settlement permits—but does not require—the NCAA to declare rules aboutlimiting “associated entity” booster payments to college athletes.
2. “Any NCAA rule that violates a state law would still be subject to such state laws and enforcement by the states.”
Because many states have NIL laws that allow college athletes to earn NIL compensation from third parties, the NCPA believes universities in states that have NIL laws should consider conducting an analysis about the degree to which their NIL law may protect athlete NIL payments from “associated entities”, NIL collectives, boosters, and other third parties from NCAA and conference NIL restrictions.