The House settlement hasn’t settled everything.
Via Brent Schrotenboer of USA Today, a new federal antitrust lawsuit has been filed in California against the NCAA regarding restrictions on player revenue sharing in 17 states.
The House settlement provides a $20.5 million cap on revenue sharing. The new lawsuit alleges that the limitation violates the law in states with legislation regarding the paying of college players for their names, images, and likenesses.
The lawsuit seeks relief on behalf of college football and basketball players impacted by the relevant rule.
“Defendants’ coordinated decision to implement these restrictions in violation of these states’ NIL laws . . . was not authorized by the Court,” the lawsuit contends. “If not for the Agreement, there would be vigorous competition in the NIL Rights States to pay college athletes in those states for their NIL rights. The [House settlement agreement] has thus unlawfully restrained competition, in violation of both federal antitrust law and California state law.”
The lawsuit focuses on rules applicable to donor collectives or other third parties that pay players on behalf of a given program for their NIL.
The seventeen states covered by the lawsuit are Arizona, California, Connecticut, Maryland, Michigan, Mississippi, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and West Virginia.
One of the named plaintiffs is Stanford quarterback Charlie Mirer, the son of former Notre Dame and NFL quarterback Rick Mirer.
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