The NCAA, along with the five largest college conferences, announced a landmark settlement on Thursday that will permit schools to pay student-athletes, a significant departure from previous regulations.
The settlement was revealed by the NCAA and leaders from the Big Ten, Southeastern Conference (SEC), Pac-12, Atlantic Coast Conference (ACC), and Big 12. The agreement resolves three antitrust lawsuits, resulting in over $2.7 billion in damages to former and current student athletes.
A key aspect of the settlement is a new revenue-sharing plan, allowing schools to distribute up to “roughly $20 million per year with their athletes,” according to ESPN. Division I athletes who have competed since 2016 will be eligible to receive a share of this revenue.
It is unclear at this time how colleges will allocate these funds.
Additionally, the settlement stipulates that any athlete who receives a share cannot pursue further antitrust complaints against the NCAA.
The agreement is subject to approval by Judge Claudia Wilken, who is presiding over the cases. Approval could take several months, but if granted, the revenue-sharing plan could be implemented as early as fall 2025.
Historically, college athletes have been treated as amateurs and prohibited from receiving payments from their institutions. Violations of this rule have led to significant penalties for college programs. This new agreement would signal a dramatic shift in the landscape of college athletics.
The NCAA and leaders from the five conferences underscored the importance of this reform in a statement.
“The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come,” the statement read.
“This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students. All of Division I made today’s progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our various student-athlete leadership groups to write the next chapter of college sports.”
