In a rather shocking development (well, not really if you have been following where college athletics is headed), the NCAA and the Power Five conferences have agreed in principle to a settlement that would allow college athletes to be paid. But that’s not all, the deal also carves out $2.8 billiion in damages the NCAA would make available for current and former athletes.
According to a report from USA TODAY, the SEC and Pac-12 provided approval on the deal Thursday, on the tails of the three other Power Five conferences already giving the nod.
Part of the deal includes the “NCAA funding the damages pool over a 10-year period and schools would begin sharing future revenues with athletes. More than half of the money for the damages pool would come from reductions in the NCAA’s distributions to all Division I schools and conferences.”
“Ecstatic to get this done,” Steve Berman, one of the plaintiffs’ lead attorneys, told USA TODAY Sports as he said he was transmitting a letter to the court overseeing the cases. “When we started this, I never dreamed of this day. It’s a revolutionary moment in college sports.”
Though details will no doubt continue to emerge, according to the report, the deal could add $20 million to athletic budgets to pay players and will have no impact on Name, image and likeness deals already a part of the ever-changing landscape of college sports.
NCAA, Power Five conferences reach deal to let schools pay players https://t.co/pi9VZYGQhT
— USA TODAY Sports (@usatodaysports) May 24, 2024
In a joint statement, the NCAA and Power Five leaders addressed the need to move forward. The deal “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. 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.”
This is huge news and just a part of how things are moving at breakneck speed as it relates to pay to play type of scenarios coming to big-time college athletics. Stay tuned. We’re sure there is more to come.
