Tennessee Attorney General Jonathan Skrmetti announced on Friday that the NCAA has come to an agreement with a coalition of states, initiated by Tennessee, to settle the lawsuit regarding NCAA regulations on NIL (name, image, likeness).

The settlement is an agreement in principle that aims to safeguard the NIL rights of student-athletes during recruitment and to prevent the NCAA from reinstating its previous ban on NIL recruiting, according to Skrmetti.

“We’ve been diligently working to defend the rights of Tennessee student-athletes,” Skrmetti declared in a statement. “Last year, we successfully challenged the NCAA’s unjust enforcement against Tennessee institutions and students, and this settlement paves the way for a lasting resolution.”

This outcome seemed likely.

On February 23, a federal judge issued a preliminary injunction that temporarily halted the NCAA’s NIL regulations, suggesting that the NCAA would probably lose the lawsuit in the end.

This ruling also highlighted the urgent need for changes in the way college athletes can be compensated. Since that ruling, both current and prospective college athletes have enjoyed greater freedom in negotiating and finalizing NIL contracts without worrying about potential NCAA repercussions.

Another federal antitrust lawsuit, known as House vs. NCAA, could add clarity to the situation as sports revenue sharing is expected to start as soon as July. Universities will have the authority to pay athletes directly, allowing for up to $21 million per year in total payments for athletes across all sports from the revenue generated by the institutions.

Despite this, NIL will still be a factor, and discussions regarding its regulations remain ongoing.

The journey of the Tennessee vs. NCAA lawsuit

This case made waves in the college sports community in early 2024, beginning with the NCAA’s investigation into the University of Tennessee’s athletics department over supposed violations of NIL rules, which culminated in the NCAA freezing those regulations.

On January 31, 2024, Skrmetti filed a lawsuit against the NCAA to challenge its strict control over NIL. This led to a confrontation at a federal courthouse in Greeneville, Tennessee, two weeks later.

A federal judge granted a preliminary injunction that temporarily suspended NCAA regulations concerning NIL advantages for athletes. On March 1, the NCAA halted all investigations related to NIL, including the inquiry into the University of Tennessee.

Since then, the case faded from public attention, particularly after the NCAA’s withdrawal. However, the legal battle persisted for several months as various court documents aimed to reshape the narrative.

Tennessee was joined in the lawsuit by other states, including Virginia, which were the initial plaintiffs, and the NCAA struggled to regain any significant ground. The case appeared to conclude on Friday.

Nevertheless, the conversation about compensating college athletes is far from finished.

Adam Sparks is the reporter covering Tennessee football. Contact him at adam.sparks@knoxnews.com. Find him on X, previously known as Twitter, at @AdamSparks. Support local journalism by subscribing at knoxnews.com/subscribe.