NCAA drops rule prohibiting NIL negotiations prior to enrollment

A major legal hurdle preventing a total embrace of free agency in college athletics has been totally removed.

On Monday the NCAA agreed to drop a rule prohibiting name, image and likeness (NIL) negotiations between student-athletes and colleges prior to enrollment (h/t ESPN).

The sudden shift in policy came as part of a legal settlement between the NCAA and a group of state attorneys general who sued claiming the rule violated U.S. antitrust law.

“With a multi-billion-dollar entertainment industry rising from the foundation of college sports, the kids who make it all happen should not be the only people denied an opportunity to prosper,” Tennessee attorney general Jonathan Skrmetti said in a statement Monday via ESPN. “This settlement benefits generations of student-athletes and pushes college sports toward a new equilibrium that acknowledges financial reality while preserving competitive integrity. I’m glad to see the NCAA give up on defending a world that no longer exists.”

A federal judge still needs to approve the settlement but if it is, then there will be no barrier to specific financial packages being used as a tool for recruitment.

Concerns had already been mounting from critics claiming college sports are careening towards the pay-to-play system once despised and punished so harshly in years past.

For example, five-star quarterbacks Bryce Underwood — the No. 1 recruit in ESPN’s 2025 class — and Julian Lewis’ sudden flips from LSU to Michigan and USC to Colorado respectively sparked speculation over financial enticements playing a role.

The NCAA has been facing multiple lawsuits dealing with the question of paying student-athletes past, present and future.

One of which is also in the settlement phase and would pave the way for student-athletes to be directly paid by schools via revenue sharing.

It’s unclear how exactly schools and collectives will embrace Monday’s rule change ahead of the 2025-26 athletic seasons. But it seems fair to infer college recruitment visits will involve far more financial negotiations than they once did.