The NCAA and college sports' wealthiest conferences are expected to file the full settlement agreement of antitrust lawsuits with a federal court by the end of the week. The $2.77 billion settlement, reached on May 23, involves the NCAA, Atlantic Coast Conference, Big Ten, Big 12, Pac-12, and Southeastern Conference. This settlement addresses challenges to limits on college athlete compensation.
As part of the agreement, eligible former and current college athletes from the House v. NCAA case will receive damages. Additionally, a revenue-sharing plan has been established to allow schools to share athletic-generated revenue with athletes. Starting in 2025, schools can allocate around $22 million to their athletes, with this amount expected to increase as athletic revenues rise for power conference schools.
Details are still being finalized for the revenue-sharing plan, particularly regarding roster limits for sports that will replace scholarship limits. The conferences are working on determining these limits, with discussions ongoing.
Despite the slow progress in finalizing the terms, negotiations are proceeding smoothly, with minor disputes remaining. Once the full agreement is filed, a motion for preliminary approval will be made to U.S. District Judge Claudia Wilken, which is typically granted.
However, Houston Christian University has filed a motion to intervene in the settlement, expressing concerns that schools outside power conferences will bear a disproportionate share of the damages over a 10-year period. Non-power conference schools argue that the majority of damages will go to football and basketball players from named conferences.
The NCAA will fund the damages from various sources, including operating costs, reserves, insurance, and withheld distributions to Division I conferences. Defendants have requested the court to dismiss HCU's motion, citing prematurity among other reasons.
Once preliminary approval is granted, the process of informing athletes about their eligibility to collect damages will begin. Athletes will be able to check their eligibility and expected settlement amounts through a designated website after receiving notice.
