Judge delays $2.78 billion NCAA settlement

Reuters Agency
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A proposed $2.78 billion settlement in the House of Representatives’ antitrust case against the NCAA was put on hold after U.S. District Judge Claudia Wilken expressed reservations about its terms Thursday in Oakland, California.

Wilken expressed concerns about provisions in the agreement that could affect name, image and likeness (NIL) payments to student-athletes. She requested that an amendment be filed within three weeks.

“I worry about the limitations of NIL for third parties,” Wilken said. “I worry (about the settlement) that it will limit those opportunities for people in the future.”

Wilken asked NCAA attorney Rakesh Kilaru whether the agreement would end with the organization paying athletes to play, but Kilaru insisted that paying to play remains against the rules. She also expressed concerns that future college athletes could be limited by the pending revenue agreement, which will last for 10 years.

Currently, sponsors can provide athletes with NIL payments, which are essentially a salary.

Wilken said: “Schools don’t have to pay these benefits and may or may not be able to pay them, but it’s clear that collectives, sponsors or third parties have these resources and are clearly willing to pay them.”

She added: “I think we’re having problems with this and I have no idea how to fix it. So I think I’m just going to have to dump it on all of you and see if you can come up with something better.”

One of the lead plaintiffs’ attorneys, Jeffrey Kessler, spoke to ESPN after the hearing and said of the judge’s comments: “We’re completely comfortable with these changes. It’s up to the NCAA now. Hopefully, they’ll agree to them. If the deal falls apart, we’ll go back to trial. If they want to deal with it, that’s a decision they have to make.”

Under the settlement, current and former NCAA athletes will receive billions of dollars.