Transfer-Rule Overhaul: DOJ Settlement Permanently Changes NCAA Transfer Eligibility

CHARLESTON, West Virginia – The U.S. Department of Justice and the NCAA have come to an agreement that will bring about significant changes in the world of college athletics. This settlement marks a milestone in the ongoing battle over athletes’ transfer eligibility restrictions.

The deal stems from a federal antitrust lawsuit filed by a group of states, challenging the NCAA’s regulation that mandated athletes who transfer more than once to sit out a year of competition. This rule has long been a point of contention for student-athletes seeking flexibility in pursuing their academic and athletic careers.

U.S. District Court Judge John Preston Bailey in West Virginia had previously issued a preliminary injunction against the NCAA, preventing enforcement of the Transfer Eligibility Rule. The DOJ later joined the legal action, adding weight to the fight for change.

Under the terms of the consent decree announced, athletes will no longer face penalties for transferring multiple times. This new policy grants them the freedom to choose their educational and athletic paths without unnecessary restrictions. Additionally, athletes who missed out on a year of competition due to the old policy will have a year of eligibility restored, dating back to the 2019-2020 season.

Assistant Attorney General Jonathan Kanter of the Department of Justice’s Antitrust Division emphasized the significance of this decision, highlighting the newfound ability of Division I college athletes to make choices that align with their academic, personal, and professional development needs.

Ohio Attorney General Dave Yost, who initiated the legal action, expressed satisfaction with the outcome, noting that the change achieved aligns with the goals initially set forth.

Now, a 60-day public comment period will follow as part of the process required by the Tunney Act. Upon its conclusion, the court will consider entering the settlement as a final judgment, solidifying the changes in place for collegiate athletes.

The recent settlement contrasts with another agreement between the NCAA and Power 5 conferences in a separate antitrust case, emphasizing the shifting landscape of collegiate athletics and the ongoing push for fair treatment and compensation for student-athletes.