NCAA, college sports cleared for revenue sharing with athletes after settlement approved
NCAA member schools can compensate their players across all sports beginning July 1, according to the approval issued by U.S. District Judge Claudia Wilken.
Paul MyerbergA federal judge has granted final approval of a settlement of three antitrust cases addressing the compensation of college athletes Friday, ending a protracted legal debate and ushering in an extraordinary era that will allow NCAA member schools to directly pay their athletes.
According to the approval issued by U.S. District Judge Claudia Wilken in Oakland, California, schools will be able to compensate their athletes for the use of their name, image and likeness across all sports through an expected initial annual allotment of $20 million-$23 million per school, according to estimates. The changes are set to go into effect July 1.
The total allotment for NIL payments will be guided by a cap of 22% of the combined total of certain revenues of Power Five conference schools. The dollar amount is set to grow annually.
The agreement resolves lawsuits involving the NCAA, the Power Five conferences and lawyers for the plaintiffs by providing a 10-year settlement worth about $2.8 billion in damages, most of which is to be paid to compensate current and former athletes who were unable to participate in NIL contracts. Athletes whose college careers began between 2016 and Sept. 15, 2024, are eligible for compensation.