The U.S. Department of Justice (DOJ) has reached an agreement with the National Collegiate Athletic Association (NCAA) to resume competition for student athletes interested in playing at Division I institutions.
That said, the DOJ filed a proposed consent decree on May 30 to prohibit the NCAA from enforcing its previous eligibility rules.
“This resolution is evidence that federal and state enforcement agencies work together to ensure free markets and fair competition for all Americans,” said Deputy Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division.
Kanter said Division I student-athletes will now be free from anti-competitive rules that unfairly restrict their mobility and will be able to choose the institution that best meets their academic, personal and professional development needs.
The proposed consent decree would also prohibit the NCAA from enforcing an “indemnity rule” against anyone related to its transfer eligibility rules, as well as prohibiting intercollegiate organizations from enforcing rules that impose similar restrictions between Division I colleges and universities .
Last January, the DOJ's antitrust division joined a civil lawsuit under the Sherman Act against the NCAA seeking to terminate the NCAA's previous eligibility rules. It was argued that the rule limits student-athletes' competition and limits their ability to transfer to colleges and universities that offer better educational and athletic opportunities.
The amended complaint, filed by the Justice Department, 10 states and the District of Columbia, argued that the NCAA's indemnification rules were anticompetitive because they prevented college athletes from challenging anticompetitive rules in court.
The proposed consent decree, if approved by the court, would prohibit the NCAA from enforcing previous eligibility rules and adopting similar rules in the future. The proposal would also require the NCAA to issue an additional year of eligibility to certain eligible student-athletes who were previously deemed ineligible due to transfer eligibility rules.