Chicago – Attorney General Kwame Raoul, along with the offices of 10 state attorneys general and the U.S. Department of Justice (DOJ), announced a significant settlement with the National Collegiate Athletic Association (NCAA) that permanently eases restrictions on Division I college athletes who have transferred schools multiple times and enhances their rights and opportunities.
Raoul and the bipartisan coalition’s agreement, which must be approved by the U.S. District Court for the Northern District of West Virginia, removes what the coalition views as an illegal restraint on athletes’ ability to market their labor and control their education.
“This settlement brings fairness to a flawed system and ensures the needs of collegiate athletes and their families are prioritized and respected,” Raoul said. “I will continue to advocate with fellow attorneys general to protect these rights.”
At issue was the NCAA’s transfer eligibility rule, which required athletes who transferred among Division I schools to wait one year before competing in games unless granted a waiver by the NCAA. Although it never changed its rule, in 2021, the NCAA began automatically exempting first-time transfers from this regulation while continuing to enforce it for subsequent transfers and denying waivers without legitimate reasons.
This uneven enforcement prompted Raoul and fellow state attorneys general to sue the NCAA in December, accusing it of violating antitrust laws with its unfair restrictions on second-time transfers. The DOJ joined this lawsuit, maintaining that the rule infringed on athletes’ ability to move freely to schools where they may have opportunities to compete.
Following the lawsuit, The U.S. District Court for the Northern District of West Virginia granted a preliminary injunction forbidding the NCAA from enforcing the transfer rule through at least the spring sports season, which just ended.
The proposed settlement announced today makes permanent the judge’s decision in favor of athletes.
In addition to ensuring athletes’ autonomy, the agreement:
- 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 this rule since 2019-20.
- Prohibits undermining or circumventing these changes through future actions or policies.
- Establishes continuing court jurisdiction to enforce terms and resolve disputes.
Attorney General Raoul was joined in this agreement by attorneys general from Colorado, District of Columbia, Minnesota, Mississippi, New York, North Carolina, Ohio, Tennessee, Virginia, West Virginia as well as by DOJ officials. Bureau Chief Elizabeth L. Maxeiner and Assistant Attorneys General Brian M. Yost and Daniel R. Betancourt are handling litigation for Raoul’s Antitrust Bureau.