Justice Department Joins Lawsuit Challenging National Collegiate Athletics Association’s (NCAA) Transfer Eligibility Rule

The amended complaint alleges that the NCAA unreasonably restricts college athletes’ freedom to transfer between academic institutions by limiting their eligibility to participate in intercollegiate contests if they transfer more than once during their college careers. By deterring transfers, the rule also denies athletes educational opportunities.

Last month, the states of Ohio, Colorado, Illinois, New York, North Carolina, Tennessee and West Virginia filed this lawsuit in the Northern District of West Virginia. Shortly after filing, the court granted the states’ request for a temporary restraining order, finding the NCAA’s Transfer Eligibility Rule likely violates Section 1 of the Sherman Act. On January 18, 2024, plaintiffs filed an amended complaint adding the United States, the states of Minnesota, Mississippi and Virginia and the District of Columbia as co-plaintiffs.

The amended complaint alleges that the NCAA’s one-time-transfer rule unreasonably restrains competition in the markets for athletic services in men’s and women’s Division I basketball and Football Bowl Subdivision (FBS) football, as well as for athletic services in all other men’s and women’s Division I sports.

The rule forces college athletes who transfer more than once to sit on the sidelines for an entire season before they are eligible to compete in NCAA athletic competitions at their new school. The amended complaint further alleges that the restriction limits college athletes’ bargaining power and harms both their educational and athletic experiences.