Class-action lawsuit in California claims House settlement shouldn’t preempt state NIL laws

Two college football players are suing the NCAA, the Power 4 conferences and the College Sports Commission, claiming the terms of a $2.8 billion antitrust settlement have been unlawfully implemented in California and 17 other states with laws that make it illegal to restrict what college athletes can earn for their name, image and likeness.

The class-action lawsuit was filed Tuesday in the Northern District of California on behalf of USC freshman linebacker Talanoa Ili, Stanford fifth-year senior quarterback Charlie Mirer, who is the son of former NFL quarterback Rick Mirer, and other Division I college football and basketball players.

The plaintiffs claim the so-called House settlement, which introduced a system of direct payments from schools to college athletes for the first time while also regulating NIL deals between athletes and third parties, “did not preempt applicable state law … prohibiting the restrictions on NIL rights.”

The House settlement was approved last June. While current athletes could object to the settlement before approval or opt out, by doing so they would not be able to take part in revenue sharing.