NCAA Approves Historic $2.8 Billion Settlement, Reshaping College Athletics

The NCAA and Big Ten Conference have agreed to a landmark $2.8 billion settlement, paving the way for significant reforms that will allow college athletes to share in revenue and earn endorsement deals. The settlement resolves major antitrust lawsuits and threatens to upend the NCAA's century-old amateur sports model.

The National Collegiate Athletic Association (NCAA) and the Big Ten Conference have approved a groundbreaking $2.8 billion settlement, heralding a seismic shift in college athletics. The move brings to fruition a series of antitrust lawsuits that have threatened to dismantle the NCAA's long-standing amateur sports model.

If approved by a judge, the settlement will allow revenue-sharing by schools with their athletes, a departure from the NCAA's traditional stance that college sports should be played by amateurs. Athletes will also be permitted to earn endorsement money, a practice that was only recently legalized three years ago.

The NCAA's 15-member Board of Governors voted unanimously to accept the plan, with one member abstaining. The Big Ten joined the Big 12 and Atlantic Coast Conference in signing off on the settlement, leaving only the Southeastern Conference and Pac-12 to weigh in. A Thursday deadline was set for agreement on the settlement, with votes from those conferences expected later in the day.

Under the terms of the settlement, the NCAA will pay $2.77 billion over 10 years to former and current college athletes who were denied the ability to earn money from endorsement and sponsorship deals dating back to 2016. The NCAA and conferences will also establish a revenue-sharing system, allowing schools to spend approximately $21 million annually on their athletes. This figure could rise over time as revenue increases.

The settlement marks a significant triumph for advocates of athlete compensation, who have long argued that college athletes are unjustly denied a fair share of the billions of dollars generated by the NCAA. The NCAA has defended its amateurism model, arguing that it protects student-athletes from exploitation and preserves the integrity of college sports.

However, legal challenges to the NCAA's amateurism rules have gained momentum in recent years, with courts siding against the organization in several high-profile antitrust cases. The NCAA has faced particular scrutiny over its strict limits on player compensation, which critics argue constitutes an illegal restraint of trade.

The settlement is expected to resolve three major antitrust lawsuits against the NCAA, which carry the threat of billions in damages. If approved, it would cripple the organization founded in 1906 and oversee some 500,000 athletes in dozens of sports.

Despite the progress towards a settlement, a fourth antitrust case could pose a potential complication. U.S. District Judge Charlotte Sweeney in Colorado has ruled that Fontenot vs. the NCAA will remain in her court and not be combined with the other antitrust lawsuits covered by the settlement.

Attorneys for the plaintiffs in Fontenot argue that their claims may not be covered by the proposed settlement and have expressed concerns about being left out. However, lead attorneys in the House lawsuit have dismissed these concerns, stating that Fontenot's issues overlap with the other cases and the settlement will release all claims.

The settlement, if approved, will represent a major shift in the landscape of college athletics. It will provide long-awaited compensation for former and current college athletes and set the stage for a more equitable distribution of revenue within the NCAA system. It remains to be seen how the settlement will be implemented and whether it will fully address the concerns raised by athletes and advocates, but it undoubtedly marks a significant step towards reshaping college sports and ensuring that athletes are fairly compensated for their contributions to the NCAA enterprise.