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They are, but this lawsuit it by the states.The schools are the NCAA. At some point all the other schools say to the cheaters, fuck you. Do you really think the schools that are doing it right, assuming there are any, like what UTjr is doing? Again, this is a voluntary membership. You don't have to be in the NCAA. But, if you are, you have to follow their rules.
And sure -- schools collectively control the NCAA. The problem is that Tennessee can't just leave the NCAA because they'd be cut off from everything; including all their revenue. So to protect their revenue, this is the alternate route.