USC PLAYER SUES NCAA OVER NIL RESTRICTIONS AFTER HOUSE SETTLEMENT

USC Trojans freshman linebacker Talanoa Ili has filed a lawsuit against the NCAA, the Power Four conferences, and the College Sports Commission over restrictions on name, image and likeness deals. Ili lodged the suit on Tuesday in the United States District Court for the Northern District of California. The 88-page filing accuses the defendants of conspiring to suppress NIL compensation below competitive levels through anti-competitive regulations. The plaintiffs also seek suspension of the NIL Go clearinghouse, which was established to vet third-party NIL deals.

The NIL Go clearinghouse launched in 2025 following the approval of the House settlement, and was designed to review third-party NIL deals valued above $2,500, up from an earlier threshold of $600. Its stated purpose was to prevent booster-funded arrangements in which donors paid athletes directly. Ili's lawsuit notes that his commitment to USC was accompanied by a substantial multi-year offer from the House of Victory collective in 2024, which was subsequently withdrawn after the House settlement received approval. The plaintiffs contend the clearinghouse has imposed greater restrictions on athletes and programmes than were anticipated.

The lawsuit is a class-action filing and includes a second football player as a co-plaintiff alongside Ili. The legal action alleges that the College Sports Commission's policies directly contradict state statutes and violate federal antitrust law. The NCAA faces the suit shortly after losing a separate court case involving a college football player with a gambling addiction. The outcome of the case could have significant implications for the structure of NIL regulation across college sport in the United States.