SIOUX FALLS S.D. (KELOLAND) — South Dakota’s two Division I public universities have filed a lawsuit against the National Collegiate Athletics Association (NCAA) on a proposed $2.8 billion settlement.

On Tuesday, Attorney General Marty Jackley and the South Dakota Board of Regents announced they filed the lawsuit on behalf of South Dakota State University and the University of South Dakota.

In a news release, the complaint alleges that a proposed $2.8 billion settlement between the NCAA and the “Power Four” conferences unfairly forces smaller schools like the South Dakota schools to be responsible for a disproportionate share of the settlement cost.

The NCAA lifted its ban on athletes earning money for sponsorship and endorsement deals in 2021 and the proposed settlement comes from a a class-action lawsuit that seeks back pay for college athletes who were denied name, image and likeness compensation dating to 2016.

The complaint was filed in Brookings County Circuit Court Tuesday morning.

Jackley is arguing that money from such a settlement would go to mainly “Power Four” student-athletes whose earning potential while in college was restrained by the NCAA’s amateur rules.

In the release, Jackley says while student-athletes deserve the financial award for their hard work and efforts, the burden of the settlement should not fall on the smaller universities like South Dakota schools.

““I am disappointed that our South Dakota athletes and universities are paying the price for a settlement that did not involve any of our conduct,” Jackley said in a news release. “This settlement unlawfully and blatantly discriminates against female student-athletes by limiting them to less than 10 percent of the proceeds.”

South Dakota Board of Regents President Tim Rave said this is a fairness issue.

“The South Dakota Board of Regents, the Attorney General’s Office, and our universities are taking action to voice our concerns about the disproportionate allocation of our state’s Division I athletic programs in the proposed NCAA settlement,” he said in a release. “This settlement will significantly impact our two largest athletic programs, and we appreciate the support of the Attorney General’s office as we navigate this issue.”

When the proposed settlement was announced in May 2024, USD Athletic Director Jon Schemmel posted on X about the issue.

“Not sure how we (USD) are supposed to get behind an NCAA settlement that takes away millions over the next 10 years from our @SDCoyotes SAs. All of those funds going to A4 conferences? How does this make sense for our 476 SAs? Of the thousands of SAs in the CCA22, what assurances or benefits do they get?” Schemmel posted.