Staff Reports
In recent years, there have been big changes in the way college athletes are compensated, and these changes are making waves in the world of college sports. The NCAA, which used to have strict rules against athletes receiving any form of payment, has now embraced the idea of athletes benefiting financially from their name, image, and likeness. This is a major shift from the traditional amateur model that has been in place for decades.
Recent reports have revealed that the NCAA has agreed to pay its athletes as part of a resolution to three lingering antitrust lawsuits. The NCAA’s Board of Governors, along with commissioners from the Power Five conferences, have come together to implement a revenue-sharing model that will effectively eliminate the old amateur competition model. This restructuring is part of a settlement stemming from multiple antitrust lawsuits totaling around $2.8 billion, and the funds will be dispersed over the next decade to over 14,000 former and current college athletes.
Now that the House settlement has been agreed to by the defendants, the push for a federal law with an NCAA antitrust exemption is picking back up.
The settlement terms are still vulnerable to antitrust attack.
The other option for antitrust protection is collective bargaining. https://t.co/834KXclNwX pic.twitter.com/qxbRwFew5C
— Mit Winter (@WinterSportsLaw) May 24, 2024
Leaders from the Power Five conference and the NCAA have expressed their approval of the settlement, stating that it will provide benefits to student-athletes and bring clarity to college athletics across all divisions for years to come. Additionally, it is believed that the payments could be distributed as early as 2025, which would mark a significant milestone in the way college sports operate.
The litigation was initiated by two student-athletes who claimed that the NCAA profited off the work of college athletes while prohibiting them from earning endorsement money. The plaintiff’s lead attorney, Steve Berman, has hailed the settlement as a landmark moment that will bring college sports into the 21st century by allowing athletes to receive a fair share of the revenue they generate for their schools. The NCAA and Power Five conference chairs have described the financial agreement as a “road map” that will define the next chapter of college sports.
This settlement represents a major shift in the way college athletes are compensated and marks a significant victory for those who have been advocating for fair and just economic treatment of student-athletes. The NCAA president has expressed enthusiasm about the deal’s prospects and has emphasized the opportunities it presents for student-athletes. While significant progress has been made, there is still more work to be done to ensure that this new system is fair and just for all student-athletes.
