Landmark settlement breaks centuries-old policy and will allow student athletes to be paid directly by schools
At a milestone decision, the National Collegiate Athletic Association and its five power conferences voted to approve a $2.77 billion settlement in House v. NCAA class action on Thursday, The Athlete mentionted. The move would phase out the NCAA's amateur model and allow schools to directly pay student-athletes a portion of the revenue they help generate.
“Five conference autonomy and the NCAA's agreement to settlement terms is an important step in the ongoing reform of college sports that will benefit student-athletes and bring clarity to college sports across all divisions for years to come,” he said. NCAA president Charlie Baker; all five commissioners of the power conference told a joint statement released Thursday afternoon.
“This settlement is also a road map for college athletic leaders and Congress to ensure that this unique American institution can continue to provide unparalleled opportunities to millions of students. All of Section I made today's progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our diverse student-athlete leadership teams to write the next chapter of college sports.”
The settlement agreement resolves a case filed in 2020, per The Athlete. The suit sought back pay for college athletes — the NCAA's national office agreed to pay $2.7 billion in past damages, spread over the next 10 years — and also sought an injunction that would force the NCAA and power conferences to abolish policies blocking the sharing of broadcast rights revenue.
Division I schools will also be allowed to distribute approximately $20 million annually to their athletes, with the number potentially increasing depending on the school's revenue.
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