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Judge OK's $2.8B settlement, paving way for colleges to pay athletes

Discussion in 'Too Hot for Swamp Gas' started by G8tas, Jun 7, 2025 at 1:13 PM.

  1. G8tas

    G8tas GC Hall of Fame

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    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.
     
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  2. VAg8r1

    VAg8r1 GC Hall of Fame

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    The final step that began with NIL payments and the transfer portal.
     
  3. CaptUSMCNole

    CaptUSMCNole Premium Member

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    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.
     
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  4. vaxcardinal

    vaxcardinal GC Hall of Fame

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    So does that mean Alabama will have to pay their players less in order to fit under the limit?
     
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  5. incoldblood

    incoldblood GC Hall of Fame

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    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
     
    Last edited: Jun 7, 2025 at 3:17 PM
  6. CaptUSMCNole

    CaptUSMCNole Premium Member

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    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.
     
  7. GatorFanCF

    GatorFanCF Premium Member

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    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.
     
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  8. vaxcardinal

    vaxcardinal GC Hall of Fame

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    Guess that means players can be fired when they suck
     
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  9. channingcrowderhungry

    channingcrowderhungry Premium Member

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    Nah. The final step will be unionizing/collective bargaining.
     
  10. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    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.
     
  11. VAg8r1

    VAg8r1 GC Hall of Fame

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    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.