Report: Federal Judge Grants Preliminary Injunction That Prevents NCAA From Enforcing NIL Rules
Another big court ruling came down today and it has major implications as far as NIL rules in College Athletics are concerned.
A federal judge in Tennessee granted a preliminary injunction, suspending NCAA rules regarding name, image, and likeness benefits for athletes and indirectly easing the stress for the University of Tennessee amid an NCAA investigation according to the Knox News. It should be noted that this injunction is not the final ruling in the case, but it may have a dramatic effect on how NIL deals are used as inducements in the short term.
From ESPN's Dan Murphy:
"CAA rules prohibit athletes from signing NIL contracts that are designed as inducements to get them to attend a particular school -- one of the few restrictions in place for how athletes can make money. For example, the NCAA recently announced sanctions against Florida State football because a member of its coaching staff connected a prospect with a booster collective that works closely with the Seminoles. The collective made a specific offer to the player, who was considering transferring from his current school to Florida State.
The attorneys general of Tennessee and Virginia argued that the NCAA is illegally restricting opportunities for athletes by preventing them from negotiating the terms of NIL deals prior to deciding where they want to go school. The lawsuit was filed Jan. 31, one day after University of Tennessee chancellor Donde Plowman revealed in a letter to the NCAA that the school's athletic department was being investigated for potential recruiting rules violations.
In Friday's ruling, Corker determined that the attorneys general have a reasonable chance of winning their case and that athletes could suffer irreparable harm if the restrictions remain in place while the case is being decided"
You can read the rest of the report from ESPN here. This is a huge ruling in the ever-changing landscape that is collegiate Athletics.
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