BROOKINGS, S.D. — South Dakota’s lawsuit against the NCAA will remain in the state’s circuit court, a federal judge has determined.
In a win for South Dakota Attorney General Marty Jackley, U.S. District Judge Karen Schrier on Friday, March 28, declined the NCAA’s petition to elevate the state’s lawsuit to federal court.
The lawsuit focuses on the NCAA’s proposed $2.8 billion settlement with the Power Four conferences — the Big 10, Big 12, ACC and SEC.
Jackley had argued that South Dakota’s two Division I universities — as well as other smaller, non-Power Four schools across the country — were not given the opportunity to have their voices heard regarding the settlement, despite the impact it would have on them.
“Power 4 schools are responsible for 90% (if not 100%) of the damages covered by the settlement yet the NCAA is sticking non-Power 4 schools with 50% or more of the cost,” the state argued.
The NCAA sought to elevate the case to federal court, arguing that South Dakota’s lawsuit involved “significant federal issues.”
Bluntly stating in court filings that “the NCAA is wrong,” Jackley countered that the case focuses on South Dakota state law and not federal law.
Using a four-pronged test, Schrier determined that the state’s lawsuit does not “raise an issue of federal law,” and thus should remain in state court — a venue potentially more favorable to Jackley.
With the federal court’s decision rendered, Jackley said he plans to continue to fight the financial burden the settlement would place on South Dakota State University and the University of South Dakota.
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“We intend to stop the NCAA from forcing South Dakota’s universities and students to be responsible for $8 million in the NCAA’s mistake,” Jackley said in a statement. “This amount will negatively impact student athletes at South Dakota’s two Division I universities.”
A hearing date has not yet been set for the state’s lawsuit to be heard in circuit court.
University officials have previously lauded Jackley’s efforts to intervene in the NCAA’s settlement, agreeing with the financial burden the schools would incur.
“The settlement poses significant implications for our athletic programs without providing comprehensive benefits for our student-athletes,” SDSU President Barry Dunn said in October. “We appreciate the support from the Attorney General’s Office as we navigate this matter to seek fair outcomes for our state and universities.”
“The University of South Dakota is grateful for the continued support of the Attorney General’s Office as we work through our concerns to guarantee equitable treatment for our state and universities,” added USD President Sheila Gestring. “The proposed House vs. NCAA settlement will substantially impact our athletic program and our ability to support our student-athletes.”
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