The National Collegiate Athletics Association (NCAA), along with the five richest athletic conferences that collectively represent more than 60 schools, agreed yesterday to settle a $2.8 billion class-action lawsuit.
The settlement would pave the way for colleges to pay student-athletes directly for the first time.
According to the proposed settlement, college athletes would receive a cut of the money schools would get from sponsorships, broadcasting rights, and ticket sales in a profit-sharing arrangement.
The agreement, pending judicial approval, also proposes that Division I schools would have to set aside up to $21 million annually for athlete compensation.
The settlement ends three out of four antitrust lawsuits, resolving claims of back-dated damages for current and former college athletes dating back to 2016.