The National Collegiate Athletic Association (NCAA) has formally approved a multibillion-dollar settlement, marking a significant shift in college sports as schools will now be required to pay their athletes directly. The settlement was approved by Judge Claudia Wilken and brings an end to three federal antitrust lawsuits that claimed the NCAA’s rules were limiting the earning power of college athletes.
The deal allows each school to pay its athletes up to a certain annual limit, starting at $20.5 million in 2025-26, which is expected to increase every year during the decade-long period. The NCAA will also pay nearly $2.8 billion in back damages over the next 10 years to athletes who competed in college from 2016 to present.
The settlement comes as a major milestone in the push to remove outdated amateurism rules from major college sports. College athletes have been allowed to make money from third parties via name, image and likeness deals since 2021, but these new payments will now come directly from the athletic departments.
NCAA President Charlie Baker welcomed the decision, stating that it will help schools regain control and reduce the unregulated market for paying college players through third parties. However, the settlement’s impact on the industry is still uncertain, with concerns about whether athletes should be considered employees and the current rules regarding roster limits remaining unresolved.
The NCAA has launched a new enforcement organization to monitor payments from schools and boosters, which will oversee investigations into potential violations and punishment for those who break the rules. The organization, called the College Sports Commission, has hired MLB executive Bryan Seeley as its CEO to lead the effort.
Source: https://www.espn.com/college-sports/story/_/id/45467505/judge-grants-final-approval-house-v-ncaa-settlement