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LEGAL NEWSLINE

Monday, September 30, 2024

Attorney General Stein announces settlement easing NCAA transfer restrictions

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Attorney General Josh Stein | Official website

Attorney General Josh Stein announced a proposed settlement with the National Collegiate Athletic Association (NCAA) that will permanently ease restrictions on Division I college athletes who have transferred schools multiple times, allowing them to play immediately after changing teams. The agreement, which requires approval by U.S. District Judge John Preston Bailey, aims to remove what the coalition of attorneys general views as an illegal restraint on athletes’ ability to pursue their best opportunities.

“Student athletes should have the same freedom that coaches, administrators, and other students have,” said Attorney General Josh Stein. “I’m pleased that the NCAA came to the table. Now, every student athlete will be able to make whatever decisions are best for them.”

The NCAA’s transfer eligibility rule required athletes who transferred among Division I schools to wait one year before competing in games unless they were granted a waiver. Although it began automatically exempting first-time transfers from this regulation in 2021, it continued to enforce the rule for subsequent transfers and consistently denied waivers even when players had legitimate grounds for seeking them. This rule temporarily prevented University of North Carolina football player Devontez Walker and Wake Forest University basketball player Efton Reid from playing for their teams last year.

The uneven and arbitrary enforcement prompted Attorney General Stein, along with other state attorneys general and the U.S. Department of Justice, to sue the organization in December, accusing it of violating antitrust laws with its unfair restrictions on second-time transfers.

Judge Bailey of the Northern District of West Virginia granted the states’ request for a preliminary injunction, forbidding the NCAA from enforcing the transfer rule through at least the 2024 spring sports season. The proposed settlement announced today makes permanent the judge’s decision in favor of the athletes.

Attorney General Stein was joined in signing this agreement by Attorneys General from Ohio, Colorado, Illinois, Minnesota, Mississippi, New York, Tennessee, Virginia, West Virginia, and the District of Columbia, as well as representatives from the U.S. Department of Justice.

A copy of the proposed agreement is available here.

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