NCAA Drops Rule Prohibiting Student-Athletes From Negotiating NIL Deals Prior to Enrollment

The NCAA has agreed to dispense with rules that prohibit student-athletes from negotiating the terms of NIL deals prior to enrolling in school. 

According to ESPN's Dan Murphy, the change is one of the terms of a legal settlement between the NCAA and a group of state attorneys general, who sued the association last year claiming that the restriction on NIL negotiations violated federal antitrust law. 

The settlement still needs to be approved by the judge overseeing the case. 

The now-defunct rule was originally designed to keep schools and collectives from using NIL deals as a tool for recruiting high school graduates and players who have entered the transfer portal. 

However, many coaches and athletic directors have admitted publicly that NIL deals are already being used as recruiting bait. 

"With a multi-billion-dollar entertainment industry rising from the foundation of college sports, the kids who make it all happen should not be the only people denied an opportunity to prosper," Jonathan Skrmetti, Tennessee's attorney general who filed the suit, said in a statement Monday. "This settlement benefits generations of student-athletes, protects Tennessee universities from NCAA retaliation, and pushes college sports toward a new equilibrium that acknowledges financial reality while preserving competitive integrity. I'm glad to see the NCAA give up on defending a world that no longer exists."

An NCAA spokesperson told ESPN the settlement was the result of months of negotiations. 

"This agreement continues the progress we have made over the last few years in allowing prospective and transferring student-athletes to seek out NIL opportunities," the spokesperson said. "This judgment is fully consistent with the House settlement and underscores our support for student-athletes benefiting from their NIL and our commitment to provide increased benefits to student-athletes at every stage in their collegiate experience, creating a sustainable model for the future of college sports."

According to ESPN, many schools have already started signing contracts with their athletes in anticipation of the settlement's approval.