The Recorder: How Uncertainty in College Athletics Compensation Could Drive Lawsuits in 2025

O’Melveny partners David Marroso and Tim Heafner, and associate Aly Bailey participated in a Q&A with ALM’s The Recorder discussing how changes in name, image, and likeness (NIL) rules for NCAA athletes could impact the future of college sports while also trigging a wave of litigation. “We expect there will be additional contract disputes over the terms of NIL agreements, but we are watching how these breach-of-contract actions evolve,” said Marroso, who serves as head of O’Melveny’s firmwide General Litigation Practice. “You have a rapidly changing, mobile industry with contracts quickly becoming more formalized and sophisticated with specific durations. This creates the possibility for tortious interference claims.” Bailey said: ‘While the NCAA took a big step back from policing student-athletes’ NIL activities, this still isn’t the pros. The NCAA still prohibits ‘pay for play’ arrangements.” Heafner added: “It remains to be seen how all these rule changes—and certain athletes earning potentially millions more than their peers—may affect other dynamics, including intra-team and intra-athletic department dynamics. But we have already seen NIL deals affect athletes’ decisions to transfer [to different] schools, including athletes deciding to transfer early in a season to preserve a redshirt year, and athletes’ decisions to remain in school longer than they otherwise may have.”

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