NCAA, five power conferences reach agreement, clearing way for revenue sharing with student-athletes

The NCAA and the five conferences it governs reached a landmark antitrust agreement Thursday night that allows student-athletes to be compensated directly. It still must be approved by a federal judge. File photo: Ian Halperin/UPI

May 24 (UPI) — The National Collegiate Athletics Association and five college athletic conferences have agreed to settle antitrust cases that will allow student-athletes to be paid, a move that is profoundly changing college sports.

The settlement, announced Thursday evening, includes $2.8 billion in compensation to be paid to current and former athletes, ending three antitrust cases.

“The five autonomy conferences 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. This agreement also provides 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,” the NCAA and the five conferences said in a joint statement.

Student-athletes Grant House and Sedona Prince sued the NCAA, Big Ten, Pac-12, Big 12, Atlantic Coast and Southeastern Coast over failure to compensate their name, image and likeness, focusing on the NCAA’s enormous revenue from broadcasting the show March Madness tournament. This included an 8-year contract extension worth $8.8 billion.

The settlement must still be approved by Judge Claudia Wilken, who presides over the antitrust cases.

Much work needs to be done to implement the settlement, and the parties’ attorneys are expected to work out the details over the next four to six weeks.

If approved, the new revenue-sharing model for student-athletes could be implemented as early as fall 2025.

“The entire Division I team made today’s progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues,” a statement from the NCAA and the five conferences said. “We look forward to working with our diverse student-athlete leadership groups to write the next chapter in college sports.”