If you are a college student athlete in a major conference, you could soon be making some serious money. The NCAA and five power conferences, which are the ACC, the Big Ten, Big 12, PAC-12, and the SEC have all agreed to settle three antitrust lawsuits, which has paved the way for colleges to start paying student athletes for the very first time.
According to ESPN, over 10 years, more than $2.7 billion will be split among more than 10,000 current and former athletes dating back to 2016. Each college can share about $20 million with its athletes per year. However, this still needs approval by a judge and possibly Congress.
The allocation formula for distributing the $2.7 billion takes into account the popularity of sports and athletes. The damages are divided based on what experts believe would happen in a competitive market. Revenue-generating sports like college football may receive more than sports with lower revenue like crew. Title IX, which promotes equality in women's sports, will also play a role in determining how benefits are distributed.
The $20 million each college can provide to its athletes will come from the substantial revenue generated by college sports, which rivals major professional sports leagues. This revenue will not be taken from other programs or athletes but from the existing revenue pot used for various purposes within the schools.
This shift in paying college athletes will not change the sports programs significantly but will enhance fairness and positively impact athletes' lives, especially those from disadvantaged backgrounds. Prospective athletes will likely continue to choose schools based on program offerings and resources, with the distribution of funds being the main change.
Concerns about how athletes will manage their newfound income are valid. It is crucial for athletes to seek advice from agents, attorneys, or parents to make informed financial decisions. Schools are expected to provide resources to help athletes receive proper financial guidance.
Overall, this development marks a significant change in college sports, emphasizing fairness and providing opportunities for student athletes to benefit from the revenue they help generate.
