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LEGAL NEWSLINE

Sunday, June 30, 2024

Settlement reached in lawsuit challenging NCAA’s double transfer rule

State AG
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Attorney General Dave Yost | Facebook Website

Ohio Attorney General Dave Yost announced a significant settlement with the National Collegiate Athletic Association (NCAA) in his lawsuit challenging the NCAA’s double transfer rule, which restricts college athletes' ability to compete after transferring to another school.

The agreement, pending approval by U.S. District Judge John Preston Bailey, aims to free college athletes from what Yost describes as the NCAA's unfair control over their transfer eligibility. Yost stated, “We’ve leveled the playing field for college athletes to allow them to better control their destinies. This long-term change is exactly what we set out to accomplish.”

The contested transfer rule mandates that athletes who transfer among Division I schools must wait one year before competing unless granted a waiver. Although the NCAA began automatically exempting first-time transfers from this regulation in 2021, it continued enforcing the rule for subsequent transfers and often denied waivers without legitimate reasons.

In December, Yost and other state attorneys general sued the NCAA, alleging that its restrictions on second-time transfers violated antitrust laws. The states were joined by the U.S. Department of Justice in asserting that the rule limited athletes' ability to market their labor.

Judge Bailey of the Northern District of West Virginia had previously granted a preliminary injunction against enforcing the transfer rule through at least the spring sports season. The proposed settlement now makes this decision permanent.

The agreement includes several key provisions:

- Prevents retaliation from the NCAA against member institutions and athletes who challenge or support challenges to the rule.

- Requires granting an additional year of eligibility to Division I athletes previously deemed ineligible under the transfer eligibility rule since the 2019-20 academic year.

- Prohibits future actions by the NCAA that could undermine or circumvent these provisions.

- Establishes continuing court jurisdiction to enforce terms and resolve disputes.

Yost led attorneys general from Colorado, Illinois, Minnesota, Mississippi, New York, North Carolina, Tennessee, Virginia, West Virginia, and Washington D.C., along with support from the U.S. Department of Justice in securing this agreement.

MEDIA CONTACT:

Hannah Hundley: 614-906-9113

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