Name: NCAA, Leagues Back $2.8 Billion Settlement, Setting Stage for Current, Former Athletes to Be Paid
Uploaded: 2024-05-25T04:58:15.000Z
Description: The NCAA and the nation's five biggest conferences announced Thursday night that they have agreed to pay nearly $2.8 billion to settle a host of antitrust claims, a monumental decision that sets the stage for a groundbreaking revenue-sharing model that could start steering millions of dollars directly to athletes as soon as the 2025 fall semester.

Cary Dunst is the news anchor for NTD Evening News. He is also the co-host of NTD Good Morning.


Cary Dunst

NTD Plus

News

We present news that is truthful and based on facts, outside of the political fog. Instead of focusing on the negative things happening around us, our mission is to give our viewers a good morning with empathetic and uplifting stories. Our aim is to provide an antidote to negativity by shining a light on the best side of people. We speak to inspiring people who positively impact communities, pursue topics that represent our common human values, and will never miss an opportunity to bring you heartwarming stories.

NTD Good Morning

Trump Has ‘Come to the End of His Rope’ on an Iran Deal: Analyst

Stefania Cox is an NTD News anchor and national correspondent based at the network's global headquarters in New York City. Stefania anchors "NTD Newsroom," and co-anchors "NTD News Today" weekdays at 10:00 am ET.

Stefania Cox

Significant That US, Five Eyes Allies Issue Joint Statement Warning China-Espionage for First Time: Taylor Hathorn

Nikou Bani

Princeton Commemorates 37 Years Since Tiananmen Square Massacre

NTD Newsroom comprises teams of reporters, editors, and producers assigned to cover breaking news and other stories.


NTD Newsroom

Migrant Boat With 240 People Intercepted at Sea

4 Senate Republicans Join Democrats to Defeat the SAVE Act

Zelenskyy Invites Putin for Face-to-Face Talks to End War

US News

Politics

Congress

Senate Passes $70 Billion Bill With New Funds for ICE, Border Patrol

Kimberly Hayek is a reporter for The Epoch Times. She covers California news and has worked as an editor and on scene at the U.S.-Mexico border during the 2019 migrant caravan crisis.

Kimberly Hayek

Daniel Monaghan is a reporter for NTD News covering culture, social issues, and education. He holds a BA in Political Science and Government.

Daniel Monaghan

World News

Americas

US Imposes Sanctions on Cuban Leader

Spencer Pratt ‘Has the Wind at His Back’ for LA Mayoral Primary: Democratic Strategist

'Willing to Kill on Industrial Scale’: Tiananmen Massacre Anniversary Illustrates CCP's Nature, Says Author

NTD Good Morning Full Broadcast (June 5)

NTD Good Morning Full Broadcast (June 4)

NTD Good Morning Full Broadcast (June 3)

NTD Good Morning Full Broadcast (June 2)

NTD Good Morning Full Broadcast (June 1)

NTD Good Morning Full Broadcast (May 29)

NTD Good Morning Full Broadcast (May 28)

NTD Good Morning Full Broadcast (May 27)

NTD Good Morning Full Broadcast (May 26)

NTD Good Morning Full Broadcast (May 25)

The Associated Press is an American not-for-profit news agency headquartered in New York City. 

The Associated Press

State News

California

More Than 17,000 Under Evacuation Orders as Southern California Wildfire Threatens Homes

Rudy Blalock is a Southern California-based daily news reporter for NTD. Originally from Michigan, he moved to California in 2017 and the sunshine and ocean have kept him here since. In his free time, he may be found underwater scuba diving, on top of a mountain hiking or snowboarding, or at home meditating—which helps fuel his active lifestyle.

Rudy Blalock

40,000 Ordered to Evacuate as Chemical Tank Leaks, Threatens Explosion in California

Video of US Fighter Jet Shooting Down UFO Over Lake Huron Emerges in New Pentagon Files

Mary Man is a writer for NTD. She has traveled around the world covering China, international news, and arts and culture.

Mary Man

China News

Epoch Times Obtains Over 2,000 Unseen Tiananmen Square Photos on 37th Anniversary of the June 4th Massacre

Ryan Morgan is a reporter for The Epoch Times focusing on military and foreign affairs. He was previously a news writer for NTD. 


Ryan Morgan

Mari Otsu is NTD's White House correspondent based in Washington. 

Mari Otsu

Middle East

Iran

3 US Warships Fend Off Iranian Attacks, Trump Says Ceasefire Still Holds

News you can trust from the U.S. and around the world. Critical information and insight. We cover the stories that others don’t. NTD News Today airs Monday–Friday at 11 a.m. ET.

NTD News Today

US Government Sues Chick-fil-A Over Religious Rights

Sports News

Kyle Busch, Two-Time NASCAR Champion, Dies at 41

Haika Mrema

Medical Plane Crash in New Mexico Mountains Kills 4, Sparks Wildfire

California Mayor Resigns, Will Plead Guilty to Acting as Chinese Agent

Jill McLaughlin is an award-winning journalist covering politics, environment, and statewide issues. She has been a reporter and editor for newspapers in Oregon, Nevada, and New Mexico. Jill was born in Yosemite National Park and enjoys the majestic outdoors, traveling, golfing, and hiking.

Jill McLaughlin

Scott Pelley Fired by ’60 Minutes’ After Clash With Management

The NCAA and the nation's five biggest conferences announced Thursday night that they have agreed to pay nearly $2.8 billion to settle a host of antitrust claims, a monumental decision that sets the stage for a groundbreaking revenue-sharing model that could start steering millions of dollars directly to athletes as soon as the 2025 fall semester.

NCAA President Charlie Baker along with the commissioners of the Atlantic Coast Conference, Big Ten, Big 12, Pac-12, and Southeastern Conference released a joint statement saying they had agreed to settlement terms. They called the move “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.”

Terms were not disclosed, though some details have emerged in the past few weeks. They signal the end of the NCAA’s bedrock amateurism model that dates to its founding in 1906. Indeed, the days of NCAA punishment for athletes driving booster-provided cars started vanishing three years ago when the organization lifted restrictions on endorsement deals backed by so-called name, image and likeness money.

The deal still must be approved by the federal judge overseeing the case and plaintiffs will have the opportunity to opt out or challenge terms of the agreement. If it stands, it will usher in the beginning of a new era in college sports where athletes are compensated more like professionals and schools can compete for talent using direct payments.

“There’s no question about it. It’s a huge quantum leap,” said Tom McMillen, the former Maryland basketball player and congressman who has led an association of collegiate athletic directors the past eight years.

Now it is not far-fetched to look ahead to seasons where star quarterbacks or top prospects on college basketball teams are not only cashing in big-money NIL deals but have six-figure school payments in the bank to play.

“This landmark settlement will bring college sports into the 21st century, with college athletes finally able to receive a fair share of the billions of dollars of revenue that they generate for their schools,” said Steve Berman, one of the lead attorneys for the plaintiffs. “Our clients are the bedrock of the NCAA’s multibillion-dollar business and finally can be compensated in an equitable and just manner for their extraordinary athletic talents.”

There are a host of details still to be determined, but the agreement calls for the NCAA and the conferences to pay $2.77 billion over 10 years to more than 14,000 former and current college athletes who say now-defunct rules prevented them from earning money from endorsement and sponsorship deals dating to 2016.

“Even though it was only because of the overwhelming legal pressure, the NCAA, conferences and schools are agreeing that college athletes should be paid,” said Ramogi Huma, a former UCLA football player and longtime advocate for college athletes. “And there’s no going back from there. That’s truly groundbreaking.”

Some of the money will come from NCAA reserve funds and insurance but even though the lawsuit specifically targeted five conferences that are comprised of 69 schools (including Notre Dame), dozens of other NCAA member schools will see smaller distributions from the NCAA to cover the mammoth payout.

Schools in the Big Ten, Big 12, ACC, and SEC are likely to end up bearing the brunt of the settlement going forward at an estimated cost of about $300 million each over 10 years, the majority of which would be paid to directly to athletes.

“The settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics,” said Notre Dame President Rev. John I. Jenkins.

The NCAA headquarters in Indianapolis on April 25, 2018. (Darron Cummings/AP Photo)


<h2>Paying Athletes</h2>
In the new compensation model, each school will be permitted but not required to set aside up to $21 million in revenue to share with athletes per year, though as revenues rise so could the cap.

Athletes in all sports would be eligible for payments and schools would be given the freedom to decide how that money is divvied up among sports programs. Scholarship limits by sport will be replaced by roster restrictions.

Whether the new compensation model is subject to the Title IX gender equity law is unknown along with whether schools will be able to bring NIL activities in-house as they hope and squeeze out the booster-run collectives that have sprouted up in the last few years to pay athletes. Both topics could lead to more lawsuits.
<h2>The Case</h2>
The class-action federal lawsuit at the center of the settlement, House v. the NCAA, was set to go to trial in January. The complaint, brought by former Arizona State swimmer Grant House and Sedona Prince, a former Oregon and current TCU basketball player, said the NCAA, along with the five wealthiest conferences, improperly barred athletes from earning endorsement money.

The suit also argued that athletes were entitled to a piece of the billions of dollars the NCAA and those conferences earn from media rights agreements with television networks.

Amid political and public pressure, and facing the prospect of another court loss that some in college sports claimed could reach $20 billion in damages, NCAA and conference officials conceded on what has long been a core principal of the enterprise: that schools don't directly pay the athletes to play beyond a scholarship.

That principle has been dented numerous times over the last decade. Notably, the Supreme Court unanimously ruled against the NCAA in 2021 in a case related to education-related benefits.

The narrow focus of the Alston case didn't collapse the collegiate sports system, but the strong rebuke of the NCAA's model of amateurism flung the door open to more lawsuits. Justice Brett Kavanaugh, a former Yale athlete, put it bluntly: “The bottom line is that the NCAA and its member colleges are suppressing the pay of student athletes who collectively generate billions of dollars in revenues for colleges every year.”
<h2>The Other cases</h2>
The settlement is expected to cover two other antitrust cases facing the NCAA and major conferences that challenge athlete compensation rules. Hubbard vs. the NCAA and Carter vs. the NCAA are also currently in front of judges in the Northern District of California.

A fourth case, Fontenot vs, NCAA, creates a potential complication as it remains in a Colorado court after a judge denied a request to combine it with Carter. Whether Fontenot becomes part of the settlement is unknown and it matters because the NCAA and its conferences don't want to be on the hook for more damages should they lose in court.

“We’re going to continue to litigate our case in Colorado and look forward to hearing about the terms of a settlement proposal once they’re actually released and put in front of a court,” said George Zelcs, a plaintiffs' attorney in Fontenot.
<h2>College Athletics Overhaul</h2>
The solution agreed to in the settlement is landmark, but not surprising. College sports has been trending in this direction for years, with athletes receiving more and more monetary benefits and rights they say were long overdue.

In December, Baker, the former Massachusetts governor who has been on the job for 14 months, proposed creating a new tier of Division I athletics where the schools with the most resources would be required to pay at least half their athletes $30,000 per year. That suggestion, along with many other possibilities, remain under discussion.

The settlement does not make every issue facing college sports go away. There is still a question of whether athletes should be deemed employees of their schools, something Baker and other college sports leaders are fighting against.

Some type of federal legislation or antitrust exemption is likely still needed to codify the terms of the settlement, protect the NCAA from future litigation and pre-empt state laws that attempt to neuter the organization's authority. As it is, the NCAA is still facing lawsuits that challenge its ability to govern itself, including setting rules limiting multiple-time transfers.

“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,” the joint statement said. "All of Division I made today’s progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our various student-athlete leadership groups to write the next chapter of college sports.”

Federal lawmakers have indicated they would like to get something done, but while several bills have been introduced, none has gone anywhere.

Despite the unanswered questions, one thing is clear: Major college athletics is about to become more like professional sports than ever before.

Latest

Videos

04_Top Stories

athletes

NCAA

Latest Clips

Don Ma is an anchor and senior business correspondent based at the network's global headquarters in New York City. Don is the anchor and producer of NTD's "Business Matters," which airs weekdays at 4:30 pm ET.

Don Ma

Latest and breaking news, documentaries, movies, and lifestyle content on NTD+.
 
Empower your knowledge and elevate your spirit with NTD+, your go-to destination for truthful news, insightful documentaries, and captivating lifestyle content that enriches your life.