House NCAA Revenue Sharing Settlement Approved by Judge

A federal judge on Monday gave preliminary approval to a slightly revised version of a multibillion-dollar settlement in three antitrust cases involving athlete compensation against the NCAA and Power Five conferences.

The decision brings the NCAA and conferences closer to funding a $2.8 billion compensation pool for current and former athletes over 10 years and sets the stage for a fundamental change in college sports as Division I schools could begin paying athletes directly for the use of their name, likeness or image. and likenesses, subject to a per school cap which will increase over time.

However, the settlement process is not completed and is potentially far from being achieved. The process of officially notifying current and former athletes of the claims terms and procedures is expected to begin in approximately two weeks. Those who would be included in the deal will have the opportunity to object or opt out before a final approval hearing in five to six months.

In addition, other remedies may be available. And the road to this point hasn’t been perfectly smooth.

Lawyers representing three separate groups of athletes filed objections to the preliminary approval. Then, during a hearing on September 5, U.S. District Judge Claudia Wilken stated that she would not approve the original version of the proposed settlement – for a number of reasons other than those expressed in the objections.

On September 26, the lawyers who prepared the proposed settlement filed a revised version of the agreement. The updated version addressed Wilken’s concerns about how the original version defined the types of entities and individuals whose current NIL contracts with athletes would be subject to special scrutiny under the new regulatory structure that the NCAA and conferences require in exchange for approval. to an industry-changing deal.

“A huge step forward for NCAA athletes,” Steve Berman, lead attorney for the plaintiffs, said in an email to USA TODAY Sports.

(This story has been updated to add new information.)