The National Collegiate Athletics Association (NCAA) has agreed to a landmark settlement that will allow member schools to share revenue directly with athletes and will pay nearly $2.8 billion in past damages. This settlement resolves claims from players who sued over their athletic service.
The NCAA and two plaintiffs’ law firms that led the class-action lawsuits disclosed the framework of the settlement on Thursday, following approval from the collegiate athletics governing body and member conferences.
The settlement resolves three lawsuits that alleged the NCAA violated antitrust law by restricting compensation and benefits to students for their athletic service. The NCAA has denied any wrongdoing.
Under the terms of the deal, which is subject to a judge’s approval, the NCAA will eliminate certain rules that barred schools from making direct payments to athletes. Schools will also be allowed to share revenues with athletes through new payments and benefits. The plaintiffs’ attorneys estimated the value of these payments and benefits at more than $20 billion over 10 years.
A “new world” for college players
Jeffrey Kessler, a lead attorney for the athletes, predicted a “new world” for college players after the settlement. Attorney Steve Berman, who co-led the cases with Kessler, called the deal “revolutionary.”
In a statement, the NCAA and a group of its conferences described the settlement as “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.”
However, the settlement does not resolve all legal challenges against the NCAA. Plaintiffs’ lawyers representing college athletes in a lawsuit against the NCAA in Colorado have indicated they will scrutinize the terms of any proposed settlement. That lawsuit, filed last year, claims the NCAA deprived student players of billions of dollars in compensation from televised broadcasts of college athletics.
The NCAA also faces ongoing litigation over various rules concerning transfer eligibility, recruitment-related compensation deals, and prize money earned at non-NCAA events.
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