Federal Judge Grants Injunction Preventing NCAA From Enforcing NIL Rules

College sports’s governing body has been dealt a setback in court.

The states of Tennessee and Virginia have won a small victory in their battle against the NCAA.

A federal judge issued a preliminary injunction Friday prohibiting the NCAA from enforcing its rules governing NIL until the resolution of a lawsuit filed by Tennessee and Virginia against American college sports’s governing body.

“It is… ORDERED that, effective immediately, the NCAA is restrained and enjoined from enforcing the Rule of Restitution as applied to the foregoing NIL activities until a full and final decision on the merits in the instant action,” Judge Clifton L. Corker wrote.

The preliminary injunction has been granted in the case of the state of Tennessee and Virginia vs. the NCAA. Details here: pic.twitter.com/6vUFn1QiEm

— Pete Thamel (@PeteThamel) February 23, 2024

The Rule of Restitution is a notorious NCAA bylaw that effectively allows the association to take retaliatory action against institutions or persons who sue it and lose.

The states of Tennessee and Virginia filed suit against the NCAA on Jan. 31, a day after news broke that the University of Tennessee was facing investigation into its NIL practices.

The NCAA, which has taken repeated criticism this century for its narrow definition of amateurism, allowed athletes to profit from the use of their name, image and likeness effective July 1, 2021.

In a statement, the NCAA slammed the ruling, writing that it would “aggravate an already chaotic collegiate environment.”

NCAA on today’s ruling: “Turning upside down rules overwhelmingly supported by member schools will aggravate an already chaotic collegiate environment, further diminishing protections for student-athletes from exploitation. The NCAA fully supports student-athletes making money…

— Pete Thamel (@PeteThamel) February 23, 2024