A district judge in California has granted preliminary approval to a settlement in the NCAA antitrust case, which could pave the way for revenue sharing for college athletes. The settlement, which requires schools to pay $2.8 billion to former athletes for lost name, image, and likeness payments, also allows schools to share millions with their athletes. The new revenue-sharing model is expected to begin on July 1.
The settlement represents a step towards a more modernized structure in college athletics and aims to address some of the industry’s challenges, though not all. The agreement was reached in May between the NCAA, power conferences, and attorneys representing plaintiffs in the case over lost NIL payments.
Under the terms of the settlement, schools can share up to $23 million annually with their athletes in a capped system, with the cap adjusting annually based on school revenues. The agreement also includes new roster limits, allowing programs to offer scholarships to their entire rosters.
While the settlement is expected to move college sports closer to a more professionalized model, some issues remain unresolved. The NCAA and college leaders continue to lobby Congress for more protections, and some schools may choose to opt out of the agreement.
A final approval hearing for the settlement is scheduled for April 7, coinciding with the NCAA men’s basketball tournament championship game. The settlement is seen as a significant step towards addressing athlete compensation in college sports, though further challenges and changes may lie ahead.
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