The financial landscape of collegiate athletics has shifted significantly in recent years. Once prohibited from receiving any form of compensation, athletes are now benefiting financially from the National Collegiate Athletics Association’s approval of NIL (name, image, and likeness) deals.
College sports is evolving swiftly, highlighted by reports on Thursday evening that the NCAA has agreed to compensate its athletes as part of settling three long-standing antitrust lawsuits.
The NCAA’s Board of Governors and commissioners from the country’s five biggest conferences (known collectively as the Power Five) have consented to implement a revenue-sharing model. This model will effectively dismantle the long-standing amateur competition framework that has existed within the NCAA for decades. This restructuring comes as part of settling various antitrust lawsuits amounting to about $2.8 billion.
According to NBC News, these funds will be distributed over the next ten years to more than 14,000 former and current college athletes.
“The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continued reform of college sports that will provide benefits to student-athletes and offer clarity in collegiate athletics across all divisions for years to come,” declared leaders from the Power Five conferences and the NCAA in a joint statement. “This settlement also serves as a road map for college sports leaders and Congress, ensuring that this uniquely American institution continues to offer unparalleled opportunities to millions of students.”
NBC News also indicated that the payments could begin as early as 2025.
“This landmark settlement will usher college sports into the 21st century, allowing college athletes to receive a fair share of the billions of dollars in revenue they generate for their schools,” said Steve Berman, a lead attorney for the plaintiffs. “Our clients are the foundation of the NCAA’s multibillion-dollar empire and can now be compensated equitably and justly for their exceptional athletic talents.”
The NCAA and Power Five conference leaders termed the financial agreement as a “road map” outlining the “next chapter of college sports.”
The original lawsuit, filed by two student-athletes—one former and one current—alleged that the NCAA profited millions from the labor of college athletes while barring them from earning endorsement money, as reported by NBC News.
“For the first time in history, we will now have a fair and just economic system for college athletes. I couldn’t be more thrilled, but celebrations are on hold until the system is implemented,” said attorney Jeffrey Kessler in response to the agreement.
NCAA president Charlie Baker showed enthusiasm about the deal’s potential and the opportunities it would provide for student-athletes.
“The most crucial aspect of the settlement—although there’s still plenty of work ahead—is that it offers some clarity and visibility on numerous issues that have been troubling everyone for a while,” Baker said. “Additionally, it brings predictability and stability for schools while creating tremendous opportunities for student-athletes.”
