NCAA and Leagues Approve $2.8 Billion Plan to Allow Payment for College Athletes

NCAA and Major Conferences Settle Antitrust Claims for $2.8 Billion, Paving the Way for Athlete Compensation

In a historic move, the NCAA and the nation’s five biggest conferences have agreed to pay nearly $2.8 billion to settle a series of antitrust claims, marking a significant shift in the landscape of college sports. The agreement, which is set to introduce a groundbreaking revenue-sharing model, could see athletes receiving direct payments as soon as the fall semester of 2025.

NCAA President Charlie Baker and the commissioners of the ACC, Big Ten, Big 12, Pac-12, and SEC released a joint statement announcing the settlement terms. They described the decision as a crucial step towards reforming college sports and providing benefits to student-athletes across all divisions for years to come.

The end of the NCAA’s longstanding amateurism model is on the horizon, with the lifting of restrictions on endorsement deals backed by name, image, and likeness money already in motion. The agreement, which still requires approval from a federal judge, aims to usher in a new era where athletes are compensated more like professionals, allowing schools to compete for talent using direct payments.

Former Maryland basketball player and congressman Tom McMillen hailed the settlement as a “huge quantum leap,” emphasizing the significance of athletes finally receiving a fair share of the revenue they generate for their schools. The agreement calls for $2.77 billion to be paid over 10 years to more than 14,000 former and current college athletes who were previously restricted from earning money from endorsement and sponsorship deals.

While the settlement represents a landmark moment in college sports, there are still details to be ironed out, including the impact on Title IX gender equity laws and the potential for more lawsuits related to athlete compensation. Despite the uncertainties, one thing is clear: major college athletics is poised to undergo a transformation that will bring it closer to the realm of professional sports than ever before.