The NCAA, along with its power-five conferences, has proposed a plan to distribute nearly $3 billion to former athletes as part of a settlement for an antitrust class-action lawsuit.
This proposed settlement also allows schools to directly compensate athletes while also aiming to manage payments made by boosters.
“NCAA college athletes have been waiting for this moment for decades, and at last, they will have the right to reap the full rewards of their dedication and effort,” stated Steve Berman, managing partner and co-founder of the Hagens Berman law firm. “We are immensely proud to be nearing the conclusion of a transformative era.”
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Trophy and banner displayed during the NCAA Division III Women’s Ice Hockey Championship at Kenyon Arena on March 19, 2022, in Middlebury, Vermont. (Nancie Battaglia/NCAA Photos via Getty Images)
“College athletes will at last be able to partake in the billions generated by their remarkable stories and stellar performances for their schools, conferences, and the NCAA,” the filing noted. “This marks a monumental shift in college sports after over four years of determined advocacy in this case.”
The $2.78 billion sum is set to be distributed over a 10-year timeframe. Compensation will be based on sport and duration of athletic careers, with most football and men’s basketball players estimated to receive nearly $135,000 each.
Nonetheless, the highest potential payout could reach almost $2 million due to “Lost NIL Opportunities,” as stated by the law firm.
A view of NRG Stadium as Nathan Mensah, #31 of the San Diego State Aztecs, and Adama Sanogo, #21 of the Connecticut Huskies, leap for the ball to kick off the game during the NCAA Men’s Basketball Tournament National Championship game at NRG Stadium on April 3, 2023, in Houston, Texas. (Logan Riely/Getty Images)
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This agreement addresses three antitrust cases — including the class-action lawsuit commonly known as House vs. the NCAA — which contested NCAA compensation regulations that have been in place since 2016. The plaintiffs argued that NCAA rules deprived thousands of athletes of the opportunity to profit from the use of their names, images, and likenesses.
The NCAA removed its ban on athletes obtaining earnings through endorsement and sponsorship arrangements in 2021.
While this agreement does not settle the debate regarding whether college athletes should be classified as employees, it incorporates language suggesting the deal could be revised if “a change in law or circumstances allows collective bargaining.”
“This settlement signifies a crucial step forward for student-athletes and college sports, but it does not resolve every issue,” stated the commissioners of the Atlantic Coast Conference, Big Ten, Big 12, Pac-12, Southeastern Conference, and NCAA President Charlie Baker in a joint statement. “The necessity for federal legislation to provide solutions continues. Without action from Congress, the advancements made through this settlement could be undermined by state laws and ongoing litigation.”
The NCAA logo displayed on the basket pad before the Second Round NCAA Men’s Basketball Tournament game between the Marquette Golden Eagles and the Colorado Buffaloes at Gainbridge Fieldhouse on March 24, 2024, in Indianapolis, Indiana. (Mitchell Layton/Getty Images)
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The filing awaits judicial approval, but attorneys indicate they plan to request preliminary approval. If granted, a public website will launch in approximately two months, providing former college athletes with information on their potential payouts.
The Associated Press contributed to this report.
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