By Madeline Folsom on SwimSwam
The Department of Justice, DOJ, issued a Statement of Interest, SOI, to Judge Wilken regarding their concerns with the upcoming NCAA vs House Settlement.
This complaint comes on after the Department of Education released a document on Thursday clarifying that NIL deals are subject to Title IX standards, which has sent shockwaves through NCAA programs and lawmakers alike.
Sam Ehrlich posted on X about the development, providing the document
The U.S. Department of Justice has filed a statement of interest in House v. NCAA, expressing concerns that the settlement “may not ‘cure the ill effects of the illegal conduct'” as it “allows the NCAA . . . to continue fixing the amount” schools can pay for NIL. pic.twitter.com/lr8fU90OIK
— Sam C. Ehrlich (@samcehrlich) January 17, 2025
The DOJ’s complaint is that the settlement terms are “not in the best interest of their citizens”. Their concern is primarily focused on the issues of the revenue cap, and their belief that the cap does not “cure the ill effects of evil conduct” and that it allows the NCAA to “continue fixing the amount” that schools can pay students.
As a solution, the DOJ wants Judge Wilken, the primary judge on the suit, to either remove the revenue cap entirely or make it clear that the revenue cap is not exempt from future litigation. The complaint document states “The risk that defendants [the NCAA] will attempt to use a private, negotiated settlement as a shield in future litigation underscores the importance of determining carefully whether it is fair and adequate. At a minimum if the Court approves the Proposed Settlement, it should make clear that doing so is not a ruling on the legality of the Salary Cap Rule”.
The DOJ also included an email from the NCAA’s lead counsel, Rakesh Kilaru, in the statement. In the email, Kilaru makes it clear that while the NCAA recognizes that the settlement will not make them immune from later DOJ action, they intend to use any approval as a defense if necessary. This might make it difficult if the DOJ is intending to sue over the cap because it will have already been approved, hence their request to Judge Wilken.
Judge Wilken has no obligation to make the changes the DOJ is requesting. Statements of Interest simply inform the Judge of the Department’s position on a legal issue, and it signals they are following the case for future litigation.
A new administration will be taking over the DOJ on January 20th, and they have the right to rescind the SOI, which you can read here.
Read the full story on SwimSwam: Department of Justice Issues Complaint about House Settlement