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Considerations for College Athletics Stakeholders Implementing Recent NCAA Rule Changes in Light of Historic Settlement

Legal Issues in Collegiate Athletics

  • July 09, 2024

Traci Bransford and Lexi Trumble wrote an article for Legal Issues in Collegiate Athletics about two rule changes from the NCAA regarding increased flexibility to transfer schools and access to additional institutional support and assistance with name, image, and likeness (NIL) activities.

They also wrote about the long-awaited House settlement that provides for payment of $2.8 billion in back damages to former student-athletes and permits prospective revenue-sharing of up to approximately 22% of the average Power Five school's revenues, which is anticipated to begin in the fall of 2025.

"These changes come in the wake of significant litigation battles, targeted legislative efforts, and passionate national discourse surrounding the current and future state of college sports. The NCAA rule changes (effective upon adoption) and the House settlement’s terms (currently being negotiated) require careful consideration by student-athletes, athletics administrators, and third parties alike to avoid potentially catastrophic legal pitfalls," Traci and Lexi wrote. 

"Much like a dominant offense’s shots on goal, NIL developments just keep coming following the implementation of the NCAA’s interim policy in July 2021," they continued. "Perhaps foreshadowing the landmark House settlement which would come just one month later, the April adoption of new NIL rules permits institutions to increase NIL-related support for student-athletes, including by identifying NIL opportunities and facilitating deals between student-athletes and third parties."

"To receive that school support for their NIL activities, however, student-athletes are required to disclose to their school information related to NIL activities equal to or exceeding $600 in value no later than 30 days after entering or signing the NIL agreement. Student-athletes’ receipt of this increased institutional support is contingent upon their disclosure of information regarding their NIL activities, including applicable parties’ contact information, services rendered, term length, compensation, and payment structure," they wrote.

Subscribers can read the full article here: Considerations for College Athletics Stakeholders Implementing Recent NCAA Rule Changes in Light of Historic Settlement 

Legal Issues in Collegiate Athletics is a newsletter dedicated to monitoring case law and legal developments at the intersection of sports and the higher education industry.