NIL's Litigation Era Has Begun

Samuel Rotellini • September 25, 2024

Broken promises and dissatisfied sponsors are going to force courts or Congress to make decisions for the NCAA

Matthew Sluka, the starting quarterback for the undefeated UNLV football team, announced last night on X that he was leaving the team, effective immediately.  In his post, he makes it pretty clear that his departure is due to unfulfilled NIL promises that were made to entice him to transfer from Holy Cross.

On X Sluka states “I committed to UNLV based on certain representations that were made to me, which were not upheld after I enrolled.  Despite discussions, it became clear that these commitments would not be fulfilled in the future.”


This is not the first time an institution has overpromised and underdelivered.  The next announcement will likely be the filing of a lawsuit against UNLV and any other parties involved. 

In the unregulated, wild, wild west of NIL, this is the logical next step in its evolution.  Unhappy players are going to sue the school, unhappy corporations are going to sue the athletes. 


The Litigation Era for NIL has begun, and until Congress or the NCAA can figure out a solution, I doubt it will end anytime soon.


Here are a few of the recent NIL lawsuits:


Reggie Bush Sues USC, PAC-12, NCAA

Bush is seeking NIL reimbursement while he was a member of the Trojans. After the recent reinstatement of his Heisman, Bush’s relationship with USC had warmed, but the financial impact of the 2004 sanctions cannot be denied.


Brandon vs. NC

The North Carolina Board of Education is now considering new rules in light of the recent lawsuit filed against their policy of prohibiting NIL compensation for high school athletes. The new rule would allow student-athletes from grades six through twelve to receive compensation from various sources, including public appearances, autograph signings, and social media.


Fanatics vs. Marvin Harrison Jr.

Fanatics claims Harrison Jr. agreed to provide the company with memorabilia and apparel, something Harrison Jr. disputes, claiming he did not sign the contract, and instead signed with The Topps Company. Fanatics has added Marvin Harrison Sr. as a defendant, alleging that he misled Fanatics into believing that his son had signed the contract.


Jaden Rashada vs. University of Florida

The University of Georgia QB has sued the University of Florida, Head Coach Billy Napier, and UF booster Hugh Hathcock, stating his argument that they fraudulently induced him to forfeit a $9.5 million NIL deal with the University of Miami. Rashada and his attorneys are accusing the UF Collective of a “bait and switch” tactic by offering over $13 million over four years as an enticement to come to UF, then failing to honor the agreement.


Federal Legislation Update

Although several bills have been introduced since the inception of NIL, there has been little to no movement by either chamber to move forward. With the election less than two months away and much more pressing issues facing Congress, you can expect there will be no conversation around student-athlete compensation until after the new session starts in 2025. Much like the NCAA, Congress has been reticent to act while they wait to see the outcome of multiple legal cases. If the House vs. NCAA settlement does get approved, you may see Congress become more involved in creating a national legal standard.


If you’re interested in staying up to date on federal legislation on NIL rights, here are some links to great resources:

Highlights of the Federal Proposals to Regulate NIL Deals - Littler Mendelson, P.C.

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