The NCAA and five power conferences have reached a $2.78 billion antitrust settlement that will provide payments to thousands of former college athletes. The deal also allows schools to compensate athletes directly while regulating payments from boosters. The plan includes guidelines for roster caps, monitoring financial payments, regulating third-party payments, and disbursing damages over the next 10 years. Division I athletes in all sports are eligible for damages, with football and basketball players from power conferences expected to receive the majority of the payouts.
The settlement covers three antitrust cases challenging NCAA compensation rules, including allowing athletes to earn money from endorsements and sponsorships. The agreement does not address the issue of whether college athletes should be deemed employees, and college sports leaders are urging Congress to pass federal legislation to provide solutions. The NCAA and conferences have agreed to amend their rules to allow schools to share up to $21 million in athletic revenues with athletes annually starting in 2025.
The new compensation system will create audit systems to monitor athletic revenue, which is expected to rise with new media rights agreements. Scholarships limits will be replaced by roster caps, with major college football teams able to have 105 players on scholarship. Schools can now offer partial scholarships in all sports. NCAA rules have been adjusted to allow schools to provide more NIL opportunities for athletes, with a voluntary reporting system for deals over $600. Damage payments will be disbursed to eligible athletes, with some athletes potentially receiving upwards of $1 million.
Plaintiffs’ attorneys will file a motion for preliminary approval, and a public website will be created for former college athletes to determine their eligibility for payments. The settlement is pending final approval, with the opportunity for athletes to object or be excluded from the agreement.
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