CHARLOTTE, N.C. — North Carolina Gov. Roy Cooper used his executive power Friday to rescind state rules guiding name, image and likeness (NIL) for college athletes following a federal court decision that paves the way for players to profit while enrolled.
The rules were first put in place in July 2021, just days after the NCAA announced it would allow athletes to profit off their NIL. Cooper said the rules were implemented at the request of colleges and universities across the state when NIL was new territory. A federal judge granted a temporary injunction in Tennessee v. NCAA last month, preventing the NCAA from enforcing rules against third-party negotiations for NIL compensation until a final decision is reached in the case.
"While these rules were helpful earlier in the process they are no longer necessary and I want to thank our colleges and universities for working with us so closely," Cooper said in a statement.
Cooper's action in 2021 was taken to help North Carolina universities remain competitive once NIL was allowed for college athletes. The temporary injunction in Tennessee v. NCAA means the rules are no longer necessary.
The judge wrote the NCAA’s stance likely violates antitrust law with Congress so far unwilling to give the association an exemption. The judge said athletes with a limited window are hurt by not being able to know their true value before committing to a school.
The decision led to questions about whether boosters will suddenly open the floodgates with offers to potential recruits. Oklahoma State athletic director Chad Weiberg said the Cowboys had anticipated the decision but “we are awaiting further guidance from the Big 12 Conference and NCAA.”
The attorneys general of Tennessee and Virginia filed a federal lawsuit on Jan. 31 challenging the NCAA’s NIL rules after it was revealed the University of Tennessee was under investigation for potential infractions.
They argued that since the NCAA lifted its ban on athletes being permitted to cash in on their fame in 2021 recruits are factoring in NIL opportunities when they choose a school — decisions that should not be limited. The judge noted the NCAA’s contention that allowing so-called NIL collectives — business entities backed by boosters — to strike deals with recruits would eviscerate the difference between college athletics and professional sports.
“While the NCAA permits student-athletes to profit from their NIL, it fails to show how the timing of when a student-athlete enters such an agreement would destroy the goal of preserving amateurism,” the judge wrote.
The Associated Press contributed to this report.
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