The long-awaited settlement in the House v. NCAA case is expected to be finalized soon, paving the way for a new era in college sports compensation. US District Judge Claudia Wilken has given her final approval, pending only a few remaining questions, and the proposed settlement would allow schools to directly pay athletes through $20.5 million in revenue sharing during the 2025-26 athletic year.
Under the agreement, nearly $2.8 billion will be set aside as back-pay damages for athletes dating back to 2016 who did not have the opportunity to be compensated for their name, image and likeness. This would mark a significant shift away from amateurism, which has been the Division I business model, except in non-scholarship programs like Division III.
Power programs, including those in the SEC, have already begun adapting the settlement’s back-pay formula, allocating 75% of revenue to football players, followed by men’s basketball and women’s basketball. This change acknowledges the multibillion-dollar commercial enterprise that college sports has become, with massive TV contracts generating significant revenue for athletes.
The NCAA is also facing increased scrutiny, following recent cases like Ed O’Bannon, which led to EA Sports’ college football game being removed from the market. The settlement would provide a new framework for athlete compensation, allowing schools to pay players directly and providing back-pay damages for those who have been left out of the system.
As college sports enters this new era, teams will need to adapt to changes in player compensation and the role of amateurism. With the portal reopening next week, teams like Stanford and Texas Tech are poised to make significant roster moves. The SEC basketball tournament has also come to a close, with Florida emerging as the champion after defeating Houston.
In other news, former NCAA president Cedric Dempsey has passed away at 92, while Brock Huard is stepping away from calling CFB games for Fox to focus on coaching tight ends.
Source: https://www.nytimes.com/athletic/6264956/2025/04/08/house-settlement-college-sports-until-saturday