The states of Tennessee and Virginia have filed a federal lawsuit against the NCAA to gain a permanent injunction barring the NCAA from enforcing its NIL recruiting ban.

In a post on X, Jonathan Skrmetti, the Tennessee AG, described it as “anticompetitive restrictions.”

“Student-athletes are entitled to rules that are clear and rules that are fair,” Skrmetti said in a news release. “College sports wouldn’t exist without college athletes, and those students shouldn’t be left behind while everybody else involved prospers. The NCAA’s restraints on prospective students’ ability to meaningfully negotiate NIL deals violate federal antitrust law. Only Congress has the power to impose such limits.”

The lawsuit suggests that the Tennessee investigation, which emerged on Tuesday, as an example of the “unlawful restriction” of the NCAA’s NIL policy.

The suit alleges that the NCAA has violated antitrust laws by denying athletes their ability to earn full compensation for their NIL. The co-plaintiffs are the attorneys general of Tennessee and Virginia and if they reach an injunction, it could suspend the NCAA’s NIL rules and limitations.

Skrmetti explained that the NCAA prohibits prospective student-athletes from discussing potential NIL opportunities with schools and collectives prior to enrolling. Prospective student-athletes are:

  • prevented from negotiating with collectives,
  • unable to review NIL offers prior to making enrollment decisions,
  • and cannot adequately consider the full scope of NIL-related services a school might offer upon enrollment.