The NCAA and the nation’s five largest conferences have agreed to a nearly $2.8 billion settlement to resolve antitrust claims, paving the way for a new revenue-sharing model that could begin directing millions to athletes by the fall semester of 2025.
The settlement, pending approval from the overseeing federal judge, signifies a shift towards compensating athletes similarly to professionals. This agreement marks the end of the NCAA’s amateurism model dating back to 1906.
Tom McMillen, a former Maryland basketball player and congressman, described the decision as “a huge quantum leap.” The Pac-12 was the final conference to approve the plan, following the Southeastern Conference’s unanimous decision earlier the same day.
The settlement requires the NCAA and the conferences to pay $2.77 billion over 10 years to over 14,000 current and former athletes. This compensation addresses claims that outdated rules prevented athletes from earning money from endorsement and sponsorship deals since 2016.
Advocate Ramogi Huma noted, “Even though it was only because of the overwhelming legal pressure, the NCAA, conferences, and schools are agreeing that college athletes should be paid.”
Most settlement funds will come from NCAA reserves and insurance, with schools in the Big Ten, Big 12, Atlantic Coast, and Southeastern conferences covering about $300 million each over 10 years. The Pac-12 will also share responsibility, despite upcoming departures of most of its members.
This landmark agreement heralds a new era in college sports, establishing a precedent for athlete compensation and fundamentally altering the financial landscape of college athletics.
