Tennessee granted temporary injunction by federal judge as NCAA loses ability to enforce NIL policy

The injunction granted in the case stems from NIL recruiting violations alleged against Tennessee

By David Cobb Feb 23, 2024 at 5:55 pm ET• 2 min read

NCAA rules barring the use of NIL compensation in recruiting received a blow in federal court on Friday when a U.S. district judge granted a temporary injunction in a lawsuit stemming from NCAA violations investigation Tennessee. The injunction stops the NCAA from enforcing any rules relating to third-party negotiation on NIL compensation until a final decision is reached in the case.

Attorney generals from Tennessee and Virginia sued the NCAA on Jan. 31 on antitrust grounds amid news that the University of Tennessee was under investigation for multiple alleged Level I infractions. The NCAA's case against Tennessee in football centers around quarterback Nico Iamaleava, who signed an NIL deal that's believed to be in the $8 million range. 

"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," said Tennessee Attorney General Jonathan Skrmetti said. "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."

In the lawsuit, the attorneys generals alleged that the NCAA had violated antitrust laws by denying athletes their ability to earn full compensation for their name, images and likeness. 

"The NCAA's prohibition likely violates federal antitrust law and harms student-athletes," U.S. District Judge Clifton Corker said in the decision handed down on Friday.