DOJ Joins Multi-State Lawsuit Challenging NCAA’s Transfer Rules

The lawsuit argues that the NCAA's multi-time transfer rule is an illegal restraint on college athletes under the Sherman Antitrust Act.

The U.S. Department of Justice has joined a multi-state lawsuit challenging the NCAA’s transfer eligibility rules, specifically those requiring multi-time transfers to sit out a year before returning to competition.
The lawsuit, led by Ohio and now joined by Minnesota, Mississippi, Virginia, the District of Columbia, and the DOJ, argues that the NCAA’s multi-time transfer rule serves as an illegal restraint on college athletes under the Sherman Antitrust Act.
A temporary restraining order and a preliminary injunction agreement have already granted immediate eligibility to athletes affected by the multi-time transfer rule through the 2023-24 academic calendar.
The lawsuit is pushing for a permanent rule change by the NCAA, or a court directive that would supersede the NCAA’s rule.
The DOJ’s involvement suggests that despite recent changes made by the NCAA, including allowing name, image, and likeness earnings and instituting a one-time, penalty-free transfer, the organization has not gone far enough.