NCAA and Leagues Approve $2.8 Billion Plan to Transform College Sports Landscape

In a groundbreaking decision, the NCAA and the nation’s five biggest conferences have agreed to pay nearly $2.8 billion to settle antitrust claims, paving the way for a new era in college sports where athletes could start receiving direct payments as soon as the 2025 fall semester.

The Pac-12 was the final conference to sign off on the proposal, with the Southeastern Conference, Big Ten, Big 12, and Atlantic Coast Conference all unanimously approving the deal earlier in the week. This monumental decision marks the end of the NCAA’s traditional amateurism model and opens the door for athletes to be compensated more like professionals.

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 prevented from earning money from endorsement and sponsorship deals dating back to 2016. Schools in the major conferences will bear the brunt of the settlement, with each expected to pay around $300 million over the next decade.

Under the new compensation model, schools will be permitted to set aside up to $21 million in revenue per year to share with athletes, with all sports eligible for payments. Scholarship limits will be replaced by roster restrictions, giving schools the freedom to decide how the money is distributed among their programs.

While the settlement is a landmark decision, there are still unanswered questions and potential challenges ahead. However, one thing is clear – major college athletics is on the brink of a significant transformation, becoming more like professional sports than ever before.