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NIL Legal & Legislation Update
Highlights from the current state of litigation involving NIL
Reggie Bush sues USC, PAC-12, NCAA
Bush is seeking NIL reimbursement while he was a member of the Trojans. After the recent reinstatement of his Heisman, Bush’s relationship with USC had warmed, but the financial impact of the 2004 sanctions cannot be denied.
House vs. NCAA
Attorneys for both sides of the settlement have previously agreed to make supplemental submissions by Thursday. Whether or not the two sides can reach an outcome that will satisfy the judge’s concerns is still up in the air. The information in these new filings may help clarify just how far apart they are.
Brandon vs. NC
The North Carolina Board of Education is now considering new rules in light of the recent lawsuit filed against their policy of prohibiting NIL compensation for high school athletes. The new rule would allow student-athletes from grades six through twelve to receive compensation from various sources, including public appearances, autograph signings and social media.
Fanatics vs. Marvin Harrison Jr.
Fanatics claims Harrison Jr. agreed to provide the company with memorabilia and apparel, something Harrison Jr. disputes, claiming he did not sign the contract, and instead signed with The Topps Company. Fanatics has added Marvin Harrison Sr. as a defendant, alleging that he misled Fanatics into believing that his son had signed the contract.
Jaden Rashada vs. University of Florida
The University of Georgia QB has sued the University of Florida, Head Coach Billy Napier and UF booster Hugh Hathcock, stating his argument that they fraudulently induced him to forfeit a $9.5 million NIL deal with the University of Miami. Rashada and his attorneys are accusing the UF Collective of a “bait and switch” tactic by offering over $13 million over four years as an enticement to come to UF, then failing to honor the agreement.
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Federal Legislation Update
Although several bills have been introduced since the inception of NIL, there has been little to no movement by either chamber to move forward. With the election less than two months away and much more pressing issues facing Congress, you can expect there will be no conversation around student-athlete compensation until after the new session starts in 2025. Much like the NCAA, Congress has been reticent to act while they wait to see the outcome of multiple legal cases. If the House vs. NCAA settlement does get approved, you may see Congress become more involved in creating a national legal standard.
If you’re interested in staying up to date on federal legislation on NIL rights, here are some links to great resources:
NIL and Data Transparency: Implications for Student-Athletes - Georgetown Law Technology Review
NIL Roundup: New Permissible Uses of NIL and Other Forms of Student-Athlete Compensation - Ropes & Gray
Highlights of the Federal Proposals to Regulate NIL Deals - Littler Mendelson, P.C.