In a groundbreaking move, the NCAA and the autonomy (Power Five) conferences have approved a historic settlement in the House v. NCAA and related cases. This settlement marks a significant milestone in the transformation of college athletics, ushering in a new era where athletes will receive their fair share of the value they create.
The Settlement’s Impact: Projected Compensation Soars
The settlement raises the projected college athlete compensation to a staggering $2.7 billion annually, with the potential to grow to over $32 billion total over the next decade. This remarkable achievement is the culmination of a decade-long battle led by powerhouse plaintiffs attorneys Steve Berman and Jeffrey Kessler, representing the interests of college athletes.
A Decisive Shift Towards Athlete Compensation
The tide began to turn in favor of athlete compensation after the 2015 O’Bannon v. NCAA ruling, which laid the groundwork for this pivotal moment. The Supreme Court’s unanimous decision in Alston v. NCAA further strengthened the case for athlete compensation, along with the emergence of new state name, image, and likeness (NIL) laws and the NCAA’s adoption of its Interim NIL Policy.
Revenue Sharing and Back-Pay: A Comprehensive Compensation Model
Under the House settlement, college athletes will benefit from a revenue-sharing model and, for a set period, receive back-pay from the years before NIL was legalized, dating back to 2016. This comprehensive approach ensures that athletes are fairly compensated for their contributions to the multi-billion-dollar college athletics industry.
via: The Athlete’s Bureau
