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USA Today
2 days ago
- Business
- USA Today
Nebraska athletic director issues statement on historic House Settlement
Nebraska athletic director issues statement on historic House Settlement A federal judge has finally approved a settlement that could change the face of college athletics. Judge Claudia Ann Wilken approved the House Settlement, paving the way for college athletes to be financially compensated for their name, image, and likeness (NIL) directly by their school. A lawsuit was filed by Grant House, a former Arizona State swimmer, who sued the NCAA and the five biggest athletic conferences in the country. The settlement will now allow schools to directly compensate their student-athletes for their NIL rights. There are nearly 200,000 athletes and 350 schools in Division I alone, and 500,000 and 1,100 schools across the entire NCAA, according to data from the Associated Press. In the first year under the settlement, schools will be allowed to share up to $20.5 million with their athletes. That number represents 22% of their revenue from sources such as media rights, ticket sales, and sponsorships. Third parties are still permitted to enter into NIL deals with players under this agreement. Another aspect of the settlement is the $2.7 billion in back pay that will be paid to athletes who competed between 2016 and 2024. Those funds will come from the NCAA and the conferences. Contact/Follow us @CornhuskersWire on X (formerly Twitter), and like our page on Facebook to follow ongoing coverage of Nebraska news, notes, and opinions.
CNN
3 days ago
- Business
- CNN
Federal judge approves $2.8B settlement, paving way for US colleges to pay athletes millions
Source: AP A federal judge signed off on arguably the biggest change in the history of college sports Friday, clearing the way for schools to begin paying their athletes millions of dollars as soon as next month as the multibillion-dollar industry shreds the last vestiges of the amateur model that defined it for more than a century. Nearly five years after Arizona State swimmer Grant House sued the NCAA and its five biggest conferences to lift restrictions on revenue sharing, U.S. Judge Claudia Wilken approved the final proposal that had been hung up on roster limits, just one of many changes ahead amid concerns that thousands of walk-on athletes will lose their chance to play college sports. The sweeping terms of the so-called House settlement include approval for each school to share up to $20.5 million with athletes over the next year and $2.7 billion that will be paid over the next decade to thousands of former players who were barred from that revenue for years. The agreement brings a seismic shift to hundreds of schools that were forced to reckon with the reality that their players are the ones producing the billions in TV and other revenue, mostly through football and basketball, that keep this machine humming. The scope of the changes — some have already begun — is difficult to overstate. The professionalization of college athletics will be seen in the high-stakes and expensive recruitment of stars on their way to the NFL and NBA, and they will be felt by athletes whose schools have decided to pare their programs. The agreement will resonate in nearly every one of the NCAA's 1,100 member schools boasting nearly 500,000 athletes. 'Approving the agreement reached by the NCAA, the defendant conferences and student-athletes in the settlement opens a pathway to begin stabilizing college sports,' NCAA President Charlie Baker said. Wilken's ruling comes 11 years after she dealt the first significant blow to the NCAA ideal of amateurism when she ruled in favor of former UCLA basketball player Ed O'Bannon and others who were seeking a way to earn money from the use of their name, image and likeness (NIL) — a term that is now as common in college sports as 'March Madness' or 'Roll Tide.' It was just four years ago that the NCAA cleared the way for NIL money to start flowing, but the changes coming are even bigger. Wilken granted preliminary approval to the settlement last October. That sent colleges scurrying to determine not only how they were going to afford the payments, but how to regulate an industry that also allows players to cut deals with third parties so long as they are deemed compliant by a newly formed enforcement group that will be run by auditors at Deloitte. The agreement takes a big chunk of oversight away from the NCAA and puts it in the hands of the four biggest conferences. The ACC, Big Ten, Big 12 and SEC hold most of the power and decision-making heft, especially when it comes to the College Football Playoff, which is the most significant financial driver in the industry and is not under the NCAA umbrella like the March Madness tournaments are. The deal looked ready to go since last fall, but Wilken put a halt to it after listening to a number of players who had lost their spots because of newly imposed roster limits being placed on teams. The limits were part of a trade-off that allowed the schools to offer scholarships to everyone on the roster, instead of only a fraction, as has been the case for decades. Schools started cutting walk-ons in anticipation of the deal being approved. Wilken asked for a solution and, after weeks, the parties decided to let anyone cut from a roster — now termed a 'Designated Student-Athlete' — return to their old school or play for a new one without counting against the new limit. Wilken ultimately agreed, going point-by-point through the objectors' arguments to explain why they didn't hold up. 'The modifications provide Designated Student-Athletes with what they had prior to the roster limits provisions being implemented, which was the opportunity to be on a roster at the discretion of a Division I school,' Wilken wrote. Her decision, however, took nearly a month to write, leaving the schools and conferences in limbo — unsure if the plans they'd been making for months, really years, would go into play. 'It remains to be seen how this will impact the future of inter-collegiate athletics — but as we continue to evolve, Carolina remains committed to providing outstanding experiences and broad-based programming to student-athletes,' North Carolina athletic director Bubba Cunningham said. The list of winners and losers is long and, in some cases, hard to tease out. A rough guide of winners would include football and basketball stars at the biggest schools, which will devote much of their bankroll to signing and retaining them. For instance, Michigan quarterback Bryce Underwood's NIL deal is reportedly worth between $10.5 million and $12 million. Losers will be the walk-ons and partial scholarship athletes whose spots are gone. One of the adjustments made at Wilken's behest was to give those athletes a chance to return to the schools that cut them in anticipation of the deal going through. Also in limbo are Olympic sports many of those athletes play and that serve as the main pipeline for a U.S. team that has won the most medals at every Olympics since the downfall of the Soviet Union. All this is a price worth paying, according to the attorneys who crafted the settlement and argue they delivered exactly what they were asked for: an attempt to put more money in the pockets of the players whose sweat and toil keep people watching from the start of football season through March Madness and the College World Series in June. What the settlement does not solve is the threat of further litigation. Though this deal brings some uniformity to the rules, states still have separate laws regarding how NIL can be doled out, which could lead to legal challenges. NCAA President Charlie Baker has been consistent in pushing for federal legislation that would put college sports under one rulebook and, if he has his way, provide some form of antitrust protection to prevent the new model from being disrupted again. See Full Web Article
Chicago Tribune
3 days ago
- Business
- Chicago Tribune
What to know about the monumental $2.8 billion settlement that will change college sports forever
A federal judge has approved terms of a sprawling $2.8 billion antitrust settlement that will upend the way college sports have been run for more than a century. In short, schools can now directly pay players through licensing deals — a concept that goes against the foundation of amateurism that college sports was built upon. Some questions and answers about this monumental change for college athletics. A: Grant House is a former Arizona State swimmer who sued the defendants (the NCAA and the five biggest athletic conferences). His lawsuit and two others were combined and over several years the dispute wound up with the settlement that ends a decades-old prohibition on schools cutting checks directly to athletes. Now, each school will be able to make payments to athletes for use of their name, image and likeness (NIL). For reference, there are nearly 200,000 athletes and 350 schools in Division I alone and 500,000 athletes and 1,100 schools across the entire NCAA. A: In Year 1, each school can share up to about $20.5 million with their athletes, a number that represents 22% of their revenue from things such as media rights, ticket sales and sponsorships. Alabama athletic director Greg Byrne famously told Congress 'those are resources and revenues that don't exist.' Some of the money will come via ever-growing TV rights packages, especially for the College Football Playoff. But some schools are increasing costs to fans through 'talent fees,' concession price hikes and 'athletic fees' added to tuition costs. A: Scholarships and 'cost of attendance' always have been part of the deal for many Division I athletes, and there is certainly value to that, especially if athletes earn their degree. The NCAA says its member schools hand out nearly $4 billion in athletic scholarships every year. How college sports are preparing for 'seismic change,' including revenue sharing and new roster limitsBut athletes have long argued that it was hardly enough to compensate them for the millions in revenue they helped produce for the schools, which went to a lot of places, including multimillion-dollar coaches salaries. They took those arguments to court and won. A: Yes, since 2021. Facing losses in court and a growing number of state laws targeting its amateurism policies, the NCAA cleared the way for athletes to receive NIL money from third parties, including so-called donor-backed collectives that support various schools. Under House, the school can pay that money directly to athletes and the collectives are still in the game. A: Probably not. But under terms of the settlement, third parties are still allowed to cut deals with the players. Some call it a workaround, but most simply view this as the new reality in college sports as schools fight to land top talent and then keep them on campus. In a big-money era, University of Illinois shrugs off rules on athletes' NIL dealsTop quarterbacks are reportedly getting paid around $2 million a year, which would eat up about 10% of a typical school's NIL budget for all its athletes. A: The defendant conferences (ACC, Big Ten, Big 12, SEC and Pac-12) are creating an enforcement arm that is essentially taking over for the NCAA, which used to police recruiting violations and the like. Among this new entity's biggest functions is to analyze third-party deals worth $600 or more to make sure they are paying players an appropriate 'market value' for the services being provided. The College Sports Commission promises to be quicker and more efficient than the NCAA. Schools are being asked to sign a contract saying they will abide by the rules of this new structure, even if it means going against laws passed in their individual states. A: A key component of the settlement is the $2.7 billion in back pay going to athletes who competed between 2016-24 and were either fully or partially shut out from those payments under previous NCAA rules. That money will come from the NCAA and its conferences (but really from the schools, who will receive lower-than-normal payouts from things such as March Madness). A: Because football and men's basketball are the primary revenue drivers at most schools, and that money helps fund all the other sports, it stands to reason that the football and basketball players will get most of the money. But that is one of the most difficult calculations for the schools to make. There could be Title IX equity concerns as well. A: The settlement calls for roster limits that will reduce the number of players on all teams while making all of those players — not just a portion — eligible for full scholarships. This figures to have an outsize impact on Olympic-sport athletes, whose scholarships cost as much as that of a football player but whose sports don't produce revenue. There are concerns that the pipeline of college talent for Team USA will take a hit. A: The new enforcement arm seems ripe for litigation. There are also the issues of collective bargaining and whether athletes should flat-out be considered employees, a notion the NCAA and schools are generally not interested in, despite Tennessee athletic director Danny White's suggestion that collective bargaining is a potential solution to a lot of headaches. NCAA President Charlie Baker has been pushing Congress for a limited antitrust exemption that would protect college sports from another series of lawsuits, but so far nothing has emerged from Capitol Hill.
Yahoo
3 days ago
- Business
- Yahoo
Direct pay to college athletes starts July 1. Some key dates tied to implementation of settlement
FILE - Grant House competes in the men's 200-meter IM final at the TYR Pro Swim Series swim meet on Saturday, June 4, 2022, in Mission Viejo, Calif. (AP Photo/Ashley Landis, File) It took five years for the $2.8 billion antitrust lawsuit against the NCAA and five major conferences to reach a settlement. Now comes the process for implementing it. Following are significant dates: June 6, 2025 Advertisement Settlement approved; settlement-related NCAA rules are effective, as adopted by the NCAA Division I Board on April 21, 2025. June 11, 2025 NIL Go portal launches. June 15, 2025 Opt-in deadline for non-defendant schools to fully commit to revenue sharing. July 1, 2025 First date for direct institutional revenue-sharing payments to student-athletes. July 6, 2025 Opt-in schools must 'designate' student-athletes permitted by the settlement to remain above roster limits. Start of 2025-26 academic year With the exception of the 'designated' student-athletes, fall sports must be at or below roster limits by their first day of competition. Advertisement December 1, 2025 With the exception of 'designated' student-athletes, winter and spring sports must be at or below roster limits by their first day of competition or Dec. 1, whichever is earlier. ___ AP college sports:
Boston Globe
3 days ago
- Business
- Boston Globe
A $2.8 billion settlement will change college sports forever. Here's how.
A: Grant House is a former Arizona State swimmer who sued the defendants (the NCAA and the five biggest athletic conferences in the nation). His lawsuit and two others were combined and over several years the dispute wound up with the settlement that ends a decades-old prohibition on schools cutting checks directly to athletes. Now, each school will be able to make payments to athletes for use of their name, image and likeness (NIL). For reference, there are nearly 200,000 athletes and 350 schools in Division I alone and 500,000 and 1,100 schools across the entire NCAA. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Q: How much will the schools pay the athletes and where will the money come from? Advertisement A: In Year 1, each school can share up to about $20.5 million with their athletes, a number that represents 22% of their revenue from things like media rights, ticket sales and sponsorships. Alabama athletic director Greg Byrne famously told Congress 'those are resources and revenues that don't exist.' Some of the money will come via ever-growing TV rights packages, especially for the College Football Playoff. But some schools are increasing costs to fans through 'talent fees,' concession price hikes and 'athletic fees' added to tuition costs. Q: What about scholarships? Wasn't that like paying the athletes? A: Scholarships and 'cost of attendance' have always been part of the deal for many Division I athletes and there is certainly value to that, especially if athletes get their degree. The NCAA says its member schools hand out nearly $4 billion in athletic scholarships every year. But athletes have long argued that it was hardly enough to compensate them for the millions in revenue they helped produce for the schools, which went to a lot of places, including multimillion-dollar coaches' salaries. They took those arguments to court and won. Advertisement Q: Haven't players been getting paid for a while now? A: Yes, since 2021. Facing losses in court and a growing number of state laws targeting its amateurism policies, the NCAA cleared the way for athletes to receive NIL money from third parties, including so-called donor-backed collectives that support various schools. Under House, the school can pay that money directly to athletes and the collectives are still in the game. Q: But will $20.5 million cover all the costs for the athletes? A: Probably not. But under terms of the settlement, third parties are still allowed to cut deals with the players. Some call it a workaround, but most simply view this as the new reality in college sports as schools battle to land top talent and then keep them on campus. Top quarterbacks are reportedly getting paid around $2 million a year, which would eat up about 10% of a typical school's NIL budget for all its athletes. Q: Are there any rules or is it a free-for-all? A: The defendant conferences (ACC, Big Ten, Big 12, SEC and Pac-12) are creating an enforcement arm that is essentially taking over for the NCAA, which used to police recruiting violations and the like. Among this new entity's biggest functions is to analyze third-party deals worth $600 or more to make sure they are paying players an appropriate 'market value' for the services being provided. The so-called College Sports Commission promises to be quicker and more efficient than the NCAA. Schools are being asked to sign a contract saying they will abide by the rules of this new structure, even if it means going against laws passed in their individual states. Advertisement Q: What about players who played before NIL was allowed? A: A key component of the settlement is the $2.7 billion in back pay going to athletes who competed between 2016-24 and were either fully or partially shut out from those payments under previous NCAA rules. That money will come from the NCAA and its conferences (but really from the schools, who will receive lower-than-normal payouts from things like March Madness). Q: Who will get most of the money? A: Since football and men's basketball are the primary revenue drivers at most schools, and that money helps fund all the other sports, it stands to reason that the football and basketball players will get most of the money. But that is one of the most difficult calculations for the schools to make. There could be Title IX equity concerns as well. Q: What about all the swimmers, gymnasts and other Olympic sports athletes? A: The settlement calls for roster limits that will reduce the number of players on all teams while making all of those players – not just a portion – eligible for full scholarships. This figures to have an outsize impact on Olympic-sport athletes, whose scholarships cost as much as that of a football player but whose sports don't produce revenue. There are concerns that the pipeline of college talent for Team USA will take a hit. Q: So, once this is finished, all of college sports' problems are solved, right? A: The new enforcement arm seems ripe for litigation. There are also the issues of collective bargaining and whether athletes should flat-out be considered employees, a notion the NCAA and schools are generally not interested in, despite Tennessee athletic director Danny White's suggestion that collective bargaining is a potential solution to a lot of headaches. NCAA President Charlie Baker has been pushing Congress for a limited antitrust exemption that would protect college sports from another series of lawsuits but so far nothing has emerged from Capitol Hill. Advertisement
