Earlier this month, a federal judge approved the terms of a $2.8 billion settlement that will see schools be permitted to pay college athletes through licensing deals. The agreement stems from three lawsuits, including one from former Arizona State swimmer Grant House, against the NCAA and the Big Five athletic conferences. Each school will be able to pay athletes directly for the use of their Name, Image, and Likeness (NIL), ending a decades-long tradition of keeping college sports amateur. In the first year of the agreement, each school will be able to fork out $20.5 million to their athletes, a number that accounts for 22% of revenue streams. While NCAA schools hand out around $4 billion in scholarships every year, athletes have argued that it wasn鈥檛 enough compensation for the amount of money they raise for their school. The agreement comes four years after the NCAA, amid multiple lawsuits, lifted the ban on athletes receiving money or NIL deals from third parties.聽 Athletes will continue to be allowed to receive NIL deals on top of the payments they receive from schools, who will be forced to fight for, or bid for, the best players. The five conferences, Big 12, ACC, Big Ten, SEC and Pac-12, will take over the NCAA鈥檚 role as the body that policed things like recruiting violations.聽 This new enforcement entity will also analyze third-party deals over $600 to make sure sponsors are paying the 鈥渕arket value鈥 for each athlete. Athletes who competed from 2016 to 2024 and didn鈥檛 receive any payments will be recipients of the $2.7 billion in back pay that is included in the settlement.
