The financial settlement offers to pay college athletes who missed out on name, image, and likeness (NIL) deals before it was made legal in 2021|@NCAA|X
For the first time, a landmark case in California could allow American universities and colleges to pay their student athletes.
If approved, the proposed $2.75 billion settlement in the House v. NCAA case would permit schools to share revenue with athletes starting July 1, upending college athletics.
The legal battle stems from three athlete-compensation antitrust cases against the NCAA and the Power Five conferences.
The financial settlement offers to pay college athletes who missed out on name, image, and likeness (NIL) deals before it was made legal in 2021. Over 88,000 former Division I players have already applied for claims, per the plaintiffs’ lawyers.
Some football and men’s basketball players could see six figures, while swimmers or soccer players stand to receive a few hundred dollars.
Schools in top conferences will have an annual salary cap starting at roughly $20.5 million to pay athletes directly; this amount could rise to around $30 million over ten years.
While US District Judge Claudia Wilken is poised to approve the settlement, some current and former athletes have raised concerns about other conditions it could bring forth, like:
- New roster limits that could boot current players and athletes who were promised spots.
- NIL deals worth $600+ would need a Deloitte-run clearinghouse’s approval.
The judge called the settlement “good” but indicated it needs changes that are “worth pursuing.”