State laws often intersect with NCAA regulations, particularly regarding Name, Image, and Likeness (NIL) rights for college athletes. States are enacting their own laws, sometimes in conflict with or expanding upon NCAA rules. This can create a complex landscape, with some states prioritizing athlete compensation while some are pro colleges.
The state of Tennessee has passed a bill that allows its state schools — University of Tennessee, Vanderbilt, Memphis, etc. — and their affiliated collectives to break House settlement-related rules and prevents college sports’ new enforcement entity from penalizing those schools.

Tennessee and Others Are Passing NIL Laws That Defy NCAA Rulebooks
Leaders and decision-makers from the Power Four conferences are circulating a binding document that would radically transform rules enforcement in college football. They are trying to create a commission separate from the NCAA that’ll enforce rules.
College Football Expert, Spencer McLaughlin believes that states that have passed a law that undermines the NCAA are setting the college football world up for chaos.
“States have passed laws all across the country, most notably, I believe, in Tennessee that say ‘yeah, an NCAA rule that you know caps NIL earning potential, you go ahead and ignore it or if you are in a situation where you want to take legal action, yeah you can do that. Very Pro School,” McLaughlin said on his YouTube channel.
McLaughlin also noted that “this proposed situation” is trying to rein every program in and the punishment for not joining in is you get kicked out of the conference. He further added that the fact that this is coming before the House settlement has been finalized is chaotic.
The new commission, separate for the NCAA, would be in charge of regulating the new revenue sharing salary cap and enforcing the upcoming NIL clearinghouse. With player compensation off its plate, the NCAA would then be freed up to focus on its more traditional roles, including eligibility rules, sports betting and academics.
A clause in the Tennessee State law permits Vanderbilt and private universities to opt out of the protections of the state law in order to cooperate with the NCAA but it appears that University of Tennessee is guiding the approach of the law because of how it’s employed lawmakers against the NCAA in the past.
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It remains to be seen if the threat of expulsion from the SEC remains legitimate against Tennessee or it’s a negotiating tactic.
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