Tennessee, Virginia Win Injunction Against NCAA In Landmark NIL Case

East Tennessee federal judge Clifton Corker has ruled on the preliminary injunction that the states of Tennessee and Virginia were seeking against the NCAA. In this case, an injunction has been granted, signaling a very big win for the two states over the NCAA for the time being. 

The attorneys general for both states filed an antitrust lawsuit a few weeks ago, looking to change the way NIL collectives could negotiate with prospective athletes. After a hearing was held on Feb. 13, the judge heard both sides argue for just over an hour before both sides went their separate ways, waiting on his opinion. 

The NCAA seemed to fumble its argument on whether or not athletes could engage in conversations pertaining to their value for a school. 

Judge Clifton Corker had this to say in regard to the ruling. 

"It is hereby ORDERED that, effective immediately, Defendant NCAA; its servants, agents, and employees; and all persons in active conce11 or participation with the NCAA, are restrained and enjoined from enforcing the NCAA Interim NIL Policy, the NCAA Bylaws, or any other authority to the extent such authority prohibits student-athletes from negotiating compensation for NIL with any third-party entity, including but not limited to boosters or a collective of boosters, until a full and final decision on the merits in the instant action."

Tennessee Attorney General Jonathan Skrmetti released the following statement after the injunction was granted. 

"The court’s grant of a preliminary injunction against the NCAA’s illegal NIL-recruitment ban ensures the rights of student-athletes will be protected for the duration of this case, but the bigger fight continues," Attorney General Skrmetti said in a statement. "We will litigate this case to the fullest extent necessary to ensure the NCAA’s monopoly cannot continue to harm Tennessee student-athletes. The NCAA is not above the law, and the law is on our side." 

Late Friday evening, the NCAA released a statement on the injunction ruling from Judge Corker. 

"Turning upside down rules overwhelmingly supported by member schools will aggravate an already chaotic collegiate environment, further diminishing protection for student-athletes from exploitation. The NCAA fully supports student-athletes making money from their name, image and likeness and is making changes to deliver more benefits to student-athletes, but an endless patchwork of state laws and court opinions make clear partnering with Congress is necessary to provide stability for the future of all college athletes."

One of the key instigators to this whole ordeal came when the NCAA decided to investigate the University of Tennessee for violating NIL rules pertaining to multiple sports. But one of the key players in this potential rules violation was quarterback Nico Iamaleava, who was reportedly being investigated for accepting certain gifts from a Tennessee collective, even though Tennessee's side is arguing everything was above board during this time period. 

What Does This Mean Now For The NCAA And NIL? 

Now that the judge has issued an injunction in the case, the NCAA cannot go after collectives that participate in conversations based upon a dollar-figure amount pertaining to NIL.

"In an apparent attempt to prohibit those inducements, the NCAA issued guidance classifying NIL collectives as ‘boosters’ to prevent them from negotiating with student-athletes during the recruiting and transfer processes. The NCAA's prohibition likely violates federal antitrust law and harms student-athletes," Judge Corker wrote. 

During the proceedings, both states argued that the NIL rules currently in-place are keeping prospects in the dark pertaining to their value in the NIL marketplace. 

"Without the give and take of a free market, student-athletes simply have no knowledge of their true NIL value," Corker wrote in his decision. "It is this suppression of negotiating leverage and the consequential lack of knowledge that harms student-athletes," Judge Corker declared. 

This decision will have a huge impact on NCAA trying to rule against NIL rules going forward. This ruling means that prospects and transfers can negotiate and sign any type of NIL deal before enrolling at a particular school, and do not have to fear any repercussions from the NCAA. 

The state of Tennessee filed a lawsuit against the NCAA regarding alleged NIL violations by the University of Tennessee.

For the time being, the NCAA will seemingly set aside most of these rules pertaining to NIL, which will make the upcoming spring portal period that much more intense. Now, collectives will be able to have free conversations with players about specific numbers, which will lead to bidding wars for prospective student-athletes and portal entries. 

But the fight is far from over, as this will continue to be argued in courtrooms over the next year, or more. One has to remember this is an antitrust case, so the NCAA will most likely continue to fight to re-establish the amateurism rules that came before this injunction was granted. 

This will continue until the case comes to a close.