Legal Defense Strategies | The Legal Edge: NIL
Issue Date: March 6, 2026 | Issue #35
A Quick Welcome from the Founder
Last month, we called Indiana Football the "NIL Inkblot,” a program that everyone projects their fears onto. This week, those fears took a terrifying legal shape.
While the Hoosiers are still celebrating their 16-0 National Championship season, the NCAA has quietly pivoted to a "nuclear option" that could effectively erase the greatest season in Bloomington history. This isn't just about a trophy; it's about the NCAA trying to reclaim the power it lost in the courtroom.
Rebekah Ballard, 3L
This Week’s Strategic Insight
The Lead: The 16-0 "Asterisk"
On February 17, 2026, the NCAA filed a response in the Texas Fifth Court of Appeals that sent shockwaves through the Big Ten.
The NCAA is threatening to invoke Bylaw 12.9.4.2—The Rule of Restitution, against Indiana University.
The Target: Individual performances, team victories, and potentially the recognition of the 2025 National Championship.
The Reason: Safety Louis Moore, who played the entire 2025 season under a court injunction. Now that Moore has dismissed his lawsuit to head to the NFL Combine (happening this week), the NCAA argues the "protection" of the court is gone, and they are free to punish the school for every game he played.
Deep Dive: What is the Rule of Restitution?
For years, the Rule of Restitution (Bylaw 12.9.4.2) was the NCAA’s "boogeyman." It was designed to prevent schools from using the court system to bypass eligibility rules.
How it works: If a student-athlete is ruled ineligible but a judge steps in and says, "Let them play for now while we settle the case" (an injunction), the school can roster them. However, if that injunction is later vacated, stayed, or reversed, or if the athlete voluntarily drops the case, the NCAA claims the right to act as if that injunction never happened.
The Punishment Toolkit:
Vacating Records: Erasing Moore’s interceptions and tackles from the history books.
Stripping Victories: Changing Indiana's 16-0 record to 0-0 (or 0-16).
Financial Penalties: Fining the university for the revenue earned during those "ineligible" games.
Return of Awards: Forcing players to return individual trophies or rings.
The Strategic Breakdown: The "Mootness" Trap
In our last issue, we discussed how the College Sports Commission (CSC) was targeting Indiana’s NIL deals. This "Rule of Restitution" is the second half of that pincer movement. This is where it gets confusing for families. Why is a dismissed case making things worse?
Last fall, Moore won an injunction because the court believed the NCAA’s "Five-Year Rule" was likely a violation of antitrust law. The court protected Moore so he wouldn't lose his $400,000 NIL contract while waiting for a trial.
However, on January 20, 2026, the day after Indiana won the title, Moore’s attorneys filed to dismiss the case. Since he’s going to the NFL, the case is "moot."
Usually, when a case is dismissed, everyone goes home. But the NCAA is arguing that a voluntary dismissal vacates the previous injunction. By dropping the suit, Moore unintentionally "unlocked the door" for the NCAA to come after Indiana.
The "Why": The NCAA isn't just mad at Indiana. They are hunting for an Appellate Ruling. They want a higher court to say that eligibility rules are "non-commercial" and immune to the antitrust laws that have been dismantling their power since the Alston case.
Legacy vs. Law: The Championship Question
Can the NCAA actually take the trophy?
The College Football Playoff (CFP) is not an NCAA championship, it is run by the conferences. Historically, the NCAA does not have the jurisdiction to "strip" a CFP title. Which creates a fascinating legal standoff.
From the NCAA’s point of view, if they vacate the wins, the games “never happened.” You can’t be a National Champion with zero wins. However, from Indiana’s point of view a court of law said Moore was eligible at the time. You can’t retroactively punish us for obeying a judge’s order.
It is draconian. It really kind of disincentivizes athletes from being able to seek judicial intervention.
The Athlete Playbook
What You Can Do Today
For ADs: Injunctions should include specific language prohibiting the NCAA from invoking Bylaw 12.9.4.2 regardless of the final case outcome.
For Agents: Use the Memphis (Cortez Braham) and SDSU (Tatuo Martinson) cases as benchmarks. These are the other "test cases" the NCAA is using to try and regain control.
For Parents: If your child is in an eligibility battle, ask your lawyer: "Is there a 'Sunset Clause' that protects the team's records even if we stop litigating?"
NIL Quick Hits
Arkansas-Tyson Foods Jersey Patch Deal
The University of Arkansas has secured a groundbreaking five-year partnership with Tyson Foods, placing the company's logo on jerseys across all 19 Razorback sports teams starting in the 2026-27 season, with approximately 90% of revenue directed straight to athletes via NIL opportunities.
Read the full story here: https://www.cbssports.com/college-football/news/arkansas-tyson-foods-jersey-patch-deal/
Tennessee Baseball Star in NIL Lawsuit
Tennessee two-way standout Blaine Brown, who transferred from Rice after his 2025 freshman season, faces a legal dispute with Rice's South Main Collective over an NIL deal running through June 2027.
Legal Lingo Explained
What is ‘Mootness’?
A legal doctrine that says a court will not hear a case if the controversy is no longer "live" or if the court can no longer provide a meaningful remedy. Essentially, if there is no longer a fight to have, the case is moot.
Why it matters in 2026: This is the "Mootness Trap." When Louis Moore finished the season and decided to go to the NFL, his legal fight for eligibility technically became moot, he didn't need to play college football anymore.
However, the NCAA is using a loophole: they are arguing that while the player’s need for an injunction is moot, the school’s liability is not. By convincing a court to dismiss the case as moot, the NCAA effectively "dissolves" the court order that was protecting Indiana, allowing them to swing the Rule of Restitution axe.
Your Toolkit
Athlete Pro Tip
In 2026, your legal 'Exit Strategy' is just as important as your entry. If you are playing under a court injunction, do not dismiss your lawsuit the moment the season ends without a written 'Release of Claims' from the NCAA.
If you walk away 'voluntarily,' you might leave your teammates and your school vulnerable to the Restitution Reaper. Always coordinate your dismissal with the university’s legal team to ensure the 'protection' doesn't vanish with your eligibility.
What’s Next?
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Disclaimer: This newsletter provides educational insights and general information related to the legal side of Name, Image, and Likeness (NIL). It does not constitute legal, financial, or professional advice, and should not be relied upon as such. This content is for informational purposes only, and you should always consult with a qualified professionals for advice tailored to your specific situation.
NIL laws are constantly evolving, and the information provided might not be the most current at all times.