Schools are now free to begin paying their athletes directly, marking the dawn of a new era in college sports brought about by a multibillion-dollar legal settlement that was formally approved Friday. Judge Claudia Wilken approved the deal between the NCAA, its most powerful conferences and lawyers representing all Division I athletes. The House v. NCAA settlement ends three separate federal antitrust lawsuits, all of which claimed the NCAA was illegally limiting the earning power of college athletes. Wilken's long-awaited decision comes with less than a month remaining before schools are planning to start cutting checks to athletes on July 1. Both sides presented their arguments for approving the settlement at a hearing in early April. While college sports leaders have been making tentative plans for a major shift in how they do business, the tight turnaround time means schools and conferences will have to hustle to establish the infrastructure needed to enforce their new rules. The NCAA will pay nearly $2.8 billion in back damages over the next 10 years to athletes who competed in college at any time from 2016 through present day. Moving forward, each school can pay its athletes up to a certain limit. The annual cap is expected to start at roughly $20.5 million per school in 2025-26 and increase every year during the decade-long deal. These new payments are in addition to scholarships and other benefits the athletes already receive. Judge signs settlement; colleges to pay athletes Schools can now pay players directly. This is a huge settlement. College sports as we know is forever changed.
I would assume Title IX applies here and female athletes have to be paid the same amount as male athletes? If so, that could cause some major issues.
I don’t think so. I believe the sec is generally doing 75% to football. More lawsuits to follow I’m sure. Some info here: How Schools Might Allocate Athlete Compensation In New Age of CFB
I would agree that there are going to be a lot of lawsuits about this. Too much money at stake for there not to be.
The coming “Employee vs Independent Contractor” argument will bring more lawsuits and millions more to attorneys. The first guy who doesn’t pay his taxes will sue the school saying he was an employee and taxes should have been withheld…Work comp for injuries incurred on the job, disability and other employee related expenses will arise. It will be interesting for sho.
So... judges can now legislate laws and invent college sports rules? That doesn't seem right. The implications of amateurism and states rights seem far more solidly grounded in law than what a single judge might think... to think that they have the power to dictate to our entire country how it all will work, seems optimistic.
The decision was the result of lawsuit. Judges have always been able to issue decisions in lawsuits and in the case it wasn't even the judge acting unilaterally. It was a settlement agreed upon by the parties.