In a significant blow to the NCAA, President Joe Biden's administration has signed onto a lawsuit that challenges the organization's authority over college athletes. This move further complicates the NCAA's chances of receiving federal antitrust protection from Congress.

The lawsuit was initially filed in December by a bipartisan group of state attorneys general, seeking to overturn the NCAA's eligibility restrictions on college athletes transferring between schools. A federal judge in West Virginia has already issued a temporary block on the NCAA's enforcement of this rule until the case is resolved.

This marks the first time that the federal government has joined a state-led case, highlighting the seriousness of the issue at hand. The Department of Justice (DOJ) and state attorneys general often collaborate on antitrust lawsuits, and their unity in this case underscores the necessity of addressing the NCAA's limitations on student-athlete mobility.

Jonathan Kanter, the head of DOJ's antitrust division, stated, "College athletes should be able to freely choose the institutions that best meet their academic, personal, and professional development needs without anticompetitive restrictions that limit their mobility by sacrificing a year of athletic competition."

The NCAA has been on the radar of federal antitrust prosecutors for a while now, and the DOJ has previously shown support for college athletes in amicus briefs filed in private cases. Recently, a US Supreme Court decision eased restrictions on their compensation, further emphasizing the need for reform within the NCAA.

The focus of the lawsuit the DOJ has joined relates to a specific NCAA rule that delays athletic eligibility for student-athletes transferring schools for the second time. While students are granted immediate eligibility after one transfer, they must sit out for a year if they choose to transfer a second time.

The NCAA has not yet responded to requests for comment regarding the DOJ's involvement in the multistate lawsuit. Interestingly, the announcement of the DOJ's participation coincided with federal lawmakers debating a controversial proposal that would exempt college sports officials from federal antitrust law.

The lawsuit argues that the NCAA's transfer rule is akin to a "no-poach agreement," which allocates the market for the labor of NCAA Division I college athletes, limiting their agency and opportunity to optimize their own welfare. The states and the DOJ contend that this rule, purportedly designed to promote the welfare of college athletes, actually undermines their autonomy.

As this case unfolds, it brings the NCAA's authority and practices into question, with significant implications for the future of college athletics. The involvement of the federal government highlights the urgency in addressing the concerns of student-athletes regarding their mobility and rights within the NCAA system.