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NCAA member schools can compensate their players across all sports beginning July 1, according to the approval issued by U.S. District Judge Claudia Wilken.
Latest on NCAA settlement that would allow revenue sharing for college athletes
USA TODAY Sports’ Steve Berkowitz discusses the latest on judge’s refusal to approve NCAA settlement that would allow revenue sharing for college athletes
Sports Pulse
A federal judge has granted final approval of a settlement of three antitrust cases addressing the compensation of college athletes Friday, ending a protracted legal debate and ushering in an extraordinary era that will allow NCAA member schools to directly pay their athletes.
According to the approval issued by U.S. District Judge Claudia Wilken in Oakland, California, schools will be able to compensate their athletes for the use of their name, image and likeness across all sports through an expected initial annual allotment of $20 million-$23 million per school, according to estimates. The changes are set to go into effect July 1.
The total allotment for NIL payments will be guided by a cap of 22% of the combined total of certain revenues of Power Five conference schools. The dollar amount is set to grow annually.
The agreement resolves lawsuits involving the NCAA, the Power Five conferences and lawyers for the plaintiffs by providing a 10-year settlement worth about $2.8 billion in damages, most of which is to be paid to compensate current and former athletes who were unable to participate in NIL contracts. Athletes whose college careers began between 2016 and Sept. 15, 2024, are eligible for compensation.
The damages money will come from the NCAA, which the largest share will come from the association’s central office via new revenue, cost savings and reserve funds. The remainder will come from reductions in NCAA distributions to Division I members, with roughly a quarter coming from members of the Power Five conferences.
“We could not be more excited for the hundreds of thousands of athletes who will now get to enjoy the tens of billions of dollars in new compensation and benefits that the settlement will provide,” Steve Berman, a lawyer for the plaintiffs, told USA TODAY Sports. “It is a historic day for college sports and the rights of athletes.”
During the process of the settlement approval, there were several objections to Wilken made in-person and in writing last month. It is expected there will be some of those objectors appealing her approval. An appeal must be made within 30 days of the decision.
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