May 30, 2024 (DENVER) – Attorney General Phil Weiser today joined attorneys general from across the country and the U.S. Department of Justice in announcing a significant settlement with the National Collegiate Athletic Association (NCAA). The agreement permanently eases restrictions on Division I college athletes who have transferred schools multiple times and enhances their rights and opportunities.
The settlement, pending approval by U.S. District Judge John Preston Bailey of the Northern District of West Virginia, aims to remove what the coalition considers an illegal restraint on student athletes' ability to market their labor and control their education.
“Student athletes deserve to be treated fairly and not sidelined because of a coaching change or other circumstances beyond their control. Freedom to pursue opportunities is an American ideal and a core tenet of the antitrust laws. The NCAA’s effort to unjustifiably undermine that principle for students looking to transfer will end as a result of this settlement,” said Weiser.
The central issue was the NCAA’s transfer eligibility rule, which required athletes transferring among Division I schools to wait one year before competing unless granted a waiver. While the NCAA began automatically exempting first-time transfers from this rule in 2021, it continued enforcing it for subsequent transfers, often denying waivers without legitimate reasons.
This inconsistent enforcement led state attorneys general to sue the NCAA in December, alleging that its restrictions on second-time transfers violated antitrust laws. The states, supported by the Justice Department, argued that the rule limited athletes' ability to move freely between schools where they might have better opportunities.
Judge Bailey previously granted a preliminary injunction preventing the NCAA from enforcing its transfer rule through at least the spring sports season.
The proposed settlement announced today makes this decision permanent. It ensures athletes' autonomy and includes several key provisions:
- Prevents retaliation from the NCAA against member institutions and athletes who challenge or support challenges against the rule.
- Requires granting an additional year of eligibility to Division I athletes previously deemed ineligible under the transfer rule since the 2019-20 academic year.
- Prohibits future actions by the NCAA that could undermine or circumvent these provisions.
- Establishes ongoing court jurisdiction to enforce terms and resolve disputes.
Attorneys general from Ohio, Illinois, Minnesota, Mississippi, New York, North Carolina, Tennessee, Virginia, West Virginia, and Washington D.C., along with the Justice Department also signed onto this agreement.
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