Written by Brian Murphy, an investigative reporter for WRAL Sports.

A federal judge has granted eligibility for college athletes who were awaiting an NCAA transfer waiver, following a case brought by seven state attorneys general, including Josh Stein of North Carolina.

Judge John P. Bailey has issued a temporary restraint order in the State of Ohio versus National Collegiate Athletic Association case. This lawsuit, which claims that the NCAA’s regulations regarding athletes transferring to multiple schools goes against antitrust laws in the United States, was filed last week in the Northern District of West Virginia.

Bailey has ordered that the NCAA cannot enforce their transfer eligibility rule for the next 14 days. This rule, which previously prevented UNC wide receiver Tez Walker from playing in the beginning of the football season, has been at the center of a prominent case.

The NCAA stated that they will not enforce the one-year residency rule for multiple-time transfers in Division I student-athletes due to today’s decision. They will also be informing member schools of this change.

According to Saquandra Heath, the NCAA’s associate director of external communications, the non-enforcement only applies to the 14-day order. Heath stated that football players, who have access to the portal, are able to transfer within the next 14 days without being affected by the rule. This statement was made in response to a question from WRAL.

The decision could have an immediate effect on nearby college athletic teams.

NC State player Kam Woods and East Carolina player Cam Hayes are both awaiting waivers, along with other athletes. Both schools declined to give a statement following the decision. NC State will face Tennessee on Saturday, while ECU will play against Florida on Friday.

Stein expressed satisfaction with the Court’s acknowledgement that the NCAA’s transfer regulation is illegal. He vows to continue advocating for the rights of student athletes, ensuring they have the freedom to make choices that will benefit their future, similar to coaches, administrators, and other students.

The NCAA representatives did not promptly reply to a comment request following the decision.

No punishment

The court decision stated that the NCAA is not allowed to penalize players and schools for participating in games during the duration of the temporary restraining order, even if the final ruling favors the NCAA.

The NCAA has a designated regulation (12.11.4.2) that grants it the authority to impose consequences or nullify records in cases where injunctions are voluntarily vacated, stayed, or overturned, or if it is ultimately determined by the courts that injunctive relief was not warranted. The lawsuit requested that the court prohibit the NCAA from enforcing its rule on “restitution.”

Bailey stated in his order that the Rule of Restitution seemingly aims to penalize any attempts to contest the NCAA’s anticompetitive regulations by limiting courts’ ability to provide effective remedies and hindering individual student-athletes and member institutions from relying on court orders in their favor.

The judge has set the date for the next preliminary injunction hearing as December 27th.

According to Raleigh lawyer Landis Barber, who follows sports legal cases and listened to the hearing online, the ruling has put an end to the NCAA’s practice of forcing athletes to sit out a year for 14 days.

“Significantly, the lawyers representing the state of Ohio must demonstrate a high chance of success in order for Judge Bailey to approve a temporary restraining order. This ruling provides insight into how the Court will potentially decide on the motion for a preliminary injunction.”

NCAA transfer rule

In January, the NCAA implemented fresh regulations for undergraduates who transfer for a second time. These regulations mandate that they either sit out for a season or obtain a waiver from the organization. The rule was unanimously approved by the Division I Council, which consists of a representative from each Division I athletic conference.

Undergraduate players are allowed to transfer once, and after graduation, they are free to transfer without having to sit out a season.

The process of granting waivers has sparked attention and received criticism. The NCAA recently approved immediate eligibility for Efton Reid, a basketball player from Wake Forest.

The NCAA approved Walker’s request after a lengthy exchange between the university and the NCAA, which involved legal professionals and political figures such as Stein and Governor Roy Cooper.

Last week, the NCAA expressed disappointment over the decision of seven state attorneys general to initiate legal proceedings.

Saquandra Heath, the associate director of external communications for the NCAA, stated last week that the decision was made with the unspoken approval of a few schools. This could potentially lead to teams having to make changes to their rosters on a monthly or weekly basis. The NCAA’s stance is that if a school disagrees with a rule or policy, they should suggest alternative rules that would apply to all members instead of resorting to legal action to circumvent the system they helped create.

The judge inquired about the number of waivers granted by the NCAA. The NCAA responded by stating they did not have an exact number, but mentioned that while some had been approved, the majority had been denied.

“Why are we limiting student-athletes in this way?” Stein, a Democrat running for governor in 2024, said in an interview with WRAL last week. “They should be able to pursue their dreams just like any other American.”

Stein made a comparison between athletes and students who have music scholarships. He also mentioned administrators and coaches, specifically Duke’s Mike Elko, who recently took a new position at Texas A&M after the regular season for the Blue Devils concluded.

According to Stein, if a student-athlete maintains good academic standing and is on schedule to graduate, they should have the ability to switch schools.

Source: wralsportsfan.com