NCAA agrees to pay billions to student-athletes in historic antitrust settlement

The financial landscape for college athletics has changed dramatically in recent years. Athletes who were once banned from receiving any compensation are financially benefiting from the National Collegiate Athletics Association by allowing NIL (name, image and likeness) transactions.

College sports are evolving rapidly, and the changes taking place are especially noticeable after multiple outlets reported Thursday evening that the NCAA had agreed to pay its athletes as part of a resolution regarding three ongoing antitrust lawsuits.

The NCAA Board of Governors and commissioners from the nation’s five largest conferences (collectively called the Power Five) have agreed to implement a revenue-sharing financial compensation model that would effectively eliminate the amateur competition model that has existed in the NCAA for decades. The restructuring is part of a settlement resulting from multiple antitrust lawsuits totaling approximately $2.8 billion.

The funds will be distributed over the next decade to more than 14,000 former and current college athletes, NBC News reported.

“The Five Conferences’ autonomy and the NCAA’s agreement to the terms of the settlement are an important step in the ongoing reform of college sports that will provide benefits to student-athletes and ensure transparency in college athletics across all sports for years to come,” Power Conference Five and NCAA leaders announced in a joint statement . “This agreement also serves as a roadmap for college athletic leaders and Congress to ensure that this uniquely American institution can continue to provide unparalleled opportunities to millions of students.”

Additionally, NBC News it is believed that payments could be distributed as early as 2025.

“This landmark settlement will bring college sports into the 21st century, where college athletes can finally receive their fair share of the billions of dollars in revenue they generate for their schools,” said Steve Berman, lead attorney for plaintiffs in the case. “Our clients are the backbone of the NCAA’s multi-billion dollar business and can finally be fairly compensated for their extraordinary athletic talents.”

NCAA and Power Five conference presidents called the financial agreement a “road map” that will define “the next chapter of college sports.”

The original lawsuit was filed by two student-athletes, one former and one current, who alleged that the NCAA made millions of dollars from the work of college athletes but barred them from earning money from sponsorships, NBC News reported.

“For the first time in history, we will have a fair and equitable economic system for college athletes. I couldn’t be more delighted. But no celebrations until the system is in place,” attorney Jeffrey Kessler said in response to the agreement.

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NCAA President Charlie Baker was enthusiastic about the prospects of the agreement and supported the opportunities it creates for student-athletes.

“The most important part of the settlement — let’s face it, there’s still a lot of work to be done — is providing transparency and visibility to a whole range of issues that have been plaguing everyone for some time,” Baker said. “The other thing it provides for schools is predictability and stability. This creates tremendous opportunities for student-athletes.”