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NCAA, states reach settlement in Transfer Eligibility Rule case

WEST VIRGINIA RECORD

Saturday, December 21, 2024

NCAA, states reach settlement in Transfer Eligibility Rule case

State AG
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CHARLESTON — West Virginia Attorney General Patrick Morrisey says a proposed consent judgment has been submitted in a lawsuit against the NCAA that challenged its Transfer Eligibility Rule to permanently bar the organization from enforcing the rule.

Under the agreement, Division I athletes immediately would be eligible to play no matter how many times they transfer. Some athletes sidelined because of the rule also will be given an extra year of eligibility. 

The agreement, which still must be approved by U.S. District Judge John Preston Bailey, removes what the coalition calls an illegal restraint on the athletes’ ability to market their labor and control their education. A coalition of 10 states led by Ohio AG Dave Yost filed the federal lawsuit in December in West Virginia's Northern District.


Morrisey | Courtesy photo

The May 30 agreement came about a month after the NCAA Division I board of directors approved legislation that followed Bailey's preliminary injunction from December.

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 they were granted a waiver. Although it never changed its rule, the NCAA in 2021 began automatically exempting first-time transfers from the regulation. Simultaneously, it continued to enforce the rule for subsequent transfers and to deny waivers for no legitimate reason.

The lawsuit was spurred after the NCAA denied RaeQuan Battle a transfer waiver allowing him to immediately play basketball for West Virginia University. After a preliminary hearing in December, Bailey temporarily ordered the NCAA to allow transferring students to participate in games through the end of this academic year.

“This a great victory for not only RaeQuan, but for all student-athletes burdened by the flawed NCAA transfer rule,” Morrisey said in a press release, calling the NCAA rule onerous. “The NCAA needs to enact consistent, logical and defensible rules that are fair and equitable for everyone."

The District of Columbia and the U.S. Department of Justice later joined the coalition in the lawsuit. The lawsuit alleged the NCAA violated Section 1 of the Sherman Act.

"We've leveled the playing field for college athletes to allow them to better control their destinies," Ohio AG Dave Yost, who led the coalition, said in a statement. "This long-term change is exactly what we set out to accomplish."

Morrisey agreed.

“The NCAA needs to recognize underlying issues that affect student-athletes in every decision,” Morrisey said. “Real life issues often are at stake.”

The proposed settlement makes permanent the judge’s decision in favor of the athletes as well as:

X Prevents retaliation from the NCAA against member institutions and athletes who challenge the rule or support those who do. This includes safeguarding student athletes' rights to compete during legal proceedings without fear of punitive actions from the NCAA.

X Requires the NCAA to grant an additional year of eligibility to Division I athletes who for any reason were previously deemed ineligible under the transfer eligibility rule since the 2019-20 academic year.

X Prohibits the NCAA from undermining or circumventing its provisions through future actions, rules or policies, thereby ensuring college athletes' rights and freedoms.

X Establishes the court's continuing jurisdiction to enforce its terms and resolve any disputes that may arise.

Besides Morrisey and Yost, the attorneys general of Colorado, Illinois, Minnesota, Mississippi, New York, North Carolina, Tennessee, Virginia and the District of Columbia, as well as the U.S. Department of Justice, have signed on to the agreement.

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