The NCAA and its five major conferences have filed a plan to pay nearly $3 billion to former athletes as part of an antitrust class-action settlement.
The proposed deal also opens the way for schools to directly pay athletes while trying to regulate booster payments.
“NCAA college athletes have waited decades for this moment, and their right to receive full value for their hard work has finally arrived,” said Steve Berman, managing partner and co-founder of the law firm Hagens Berman. “We are incredibly proud to be in the final stages of a historic shift.”
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Trophy and banner displayed during the NCAA Division III Women’s Ice Hockey Championship at Kenyon Arena on March 19, 2022, in Middlebury, Vermont. (Nancie Battaglia/NCAA Photos via Getty Images)
“College athletes will finally be able to share in the billions of dollars that their compelling stories and dynamic performances have generated for their schools, conferences and the NCAA,” the filing reads. “This is nothing short of a sea change for college sports after more than four years of hard-earned victories in this case.”
The $2.78 billion will be paid out over 10 years. Payments will be determined by the sport played and the length of the athletic career, with most football and men’s basketball players receiving about $135,000 each.
However, the highest estimated amount is expected to be nearly $2 million, thanks to “lost NIL opportunities,” according to the law firm.
A view of NRG Stadium as Nathan Mensah #31 of the San Diego State Aztecs and Adama Sanogo #21 of the Connecticut Huskies jump for the ball to start the game during the NCAA Men’s Basketball Tournament National Championship game at NRG Stadium on April 3, 2023 in Houston, Texas. (Logan Riely/Getty Images)
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The agreement covers three antitrust cases — including the class action known as House v. the NCAA — that challenged the NCAA’s compensation rules dating back to 2016. The plaintiffs claimed the NCAA’s rules deprived thousands of athletes of the opportunity to earn millions of dollars from the use of their names, images and likenesses.
The NCAA lifted its ban on athletes earning money from endorsement and sponsorship deals in 2021.
The agreement does not address the issue of whether college athletes should be considered employees, but it includes a clause that suggests the agreement could be amended if “a change in law or circumstances permits collective bargaining.”
“This agreement is an important step forward for student-athletes and college athletics, but it does not solve all the problems,” the commissioners of the Atlantic Coast Conference, Big Ten, Big 12, Pac-12, Southeastern Conference and NCAA President Charlie Baker said in a joint statement. “The need for federal legislation to address these issues remains. If Congress fails to act, the progress made through the agreement could be significantly eroded by state laws and continued litigation.”
The NCAA logo is displayed on the basket cushion prior to the NCAA Men’s Basketball Tournament second round game between the Marquette Golden Eagles and the Colorado Buffaloes at Gainbridge Fieldhouse on March 24, 2024 in Indianapolis, Indiana. (Mitchell Layton/Getty Images)
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The case still needs to be approved by a judge, but attorneys say they will file a motion for preliminary approval and, if granted, a public website will go live in about two months where former college athletes can determine how much they are eligible to receive.
The Associated Press contributed to this report.
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