The Great Plains region has discussed this topic at recent APSE functions, and the word from legal counsel is that the court fight would not be successful. I don't know if that means newspapers shouldn't have it in the arsenal in efforts to reach some compromise, along with newspapers independently making decisions on whether these policies by high school associations will affect coverage decisions.
In Missouri, MSHSAA snuck in wording on the credential forms a few years back: "Any secondary use of any picture, audio description, videotape/film or drawing of the event taken or made by an accredited agency or individual to whom a credential has been issued (including, but not limited to, use in delayed editorial or noneditorial, advertising, sales promotion or merchandising) is strictly prohibited."
Knowing there were growing concerns about the issue this summer, they reworded their credential: "Advance consent from the MSHSAA is required for any secondary use of any picture, audio description or videotape/film of the event taken or made by an accredited media agency or individual to whom a credential has been issued (including, but not limited to sales promotion or merchandising)."
MSHSAA is one of those associations that has contracted with a company that takes action photos and the awards ceremonies and sells those photos to parents and whomever. Their goal is to protect that business relationship.
This year, MSHSAA also formed a media advisory committee (something Illinois has had for many years) which eventually may help work on some policy decisions in this area.