Following a lengthy process, a federal judge on Friday granted final approval of the House v. NCAA Settlement, paving the way for schools to pay athletes directly.
In a landmark decision that will alter the landscape of collegiate sports, Judge Claudia Wilken of the Northern District of California approved a far-reaching settlement of the House v. NCAA case on Friday. The settlement touches on a host of important issues:
1. $2.8 billion in back pay to former NCAA athletes
The settlement will reward damages to athletes dating back to 2016 who were not allowed to sign NIL deals and thus were not able to profit in the same way current athletes are able. The bulk of this money is expected to go to former football and men’s basketball players.
2. $20.5 million in revenue sharing per school
A formula derived from a percentage of average power school revenues will establish a maximum revenue sharing pool for each institution, expected to be around $20.5 million for the upcoming 2025-2026 academic year. Schools are not required to spend this much — many won’t — and distributions are expected to weigh heavily toward football.
3. Roster Limits
All roster spots can now be given scholarships with defined limits for each sport. For example, football rosters are now capped at 105 players (previously 85), and any number of those players are allowed to be given scholarships. Baseball (previously allowed 11.7 scholarships) can now scholarship as many as 34 players.
4. NIL Clearinghouse
A Deloitte-run NIL clearinghouse will be established. All third-party deals of at least $600 must go through that clearinghouse to be either approved or disapproved, with mechanisms existing for resubmission and alteration of said deals.
What’s Next?
Ross Dellenger (Yahoo) and The Athletic have written in more detail about the settlement. The ramifications of this massive decision are only just beginning. More details will come out over the days and weeks ahead.
