The NCAA, Power Five conferences, and lawyers for plaintiffs in antitrust cases have approved a proposed settlement that would include a nearly $2.8 billion damages pool for current and former athletes and change how athletes are compensated. The SEC and Pac-12 also approved the deal, following earlier approvals from other conferences and NCAA governing boards. The settlement would create revenue sharing for athletes, with a cap on payments over time. Athletes can still receive compensation for activities related to their name, image, and likeness. The NCAA and Power Five commissioners view the settlement as a step towards reforming college sports and providing benefits to student-athletes.
The approval process for the settlement will involve a U.S. District Judge and the opportunity for athletes to object. Athletes could begin receiving payments from the fund by fall 2025. The concept of compensating college athletes has evolved over the last 15 years due to the growth in college sports revenues and pressure from state legislation. The settlement would resolve cases brought by former athletes seeking damages for lost compensation due to NCAA restrictions.
This settlement is a significant milestone in college sports, with potential implications for athlete compensation and future legal challenges against the NCAA’s rules. The proposed agreement aims to provide financial support to current and former athletes, acknowledging their contributions to college sports while addressing long-standing concerns about fair compensation.
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