NCAA and Major Conferences Agree to $2.8 Billion Athlete Settlement

Evansville, Indiana, March 30, 2024 – The NCAA and the five power conferences have reached a settlement to resolve antitrust claims, paving the way for institutions to compensate student-athletes. This settlement, announced jointly by NCAA officials and conference commissioners, will total nearly $2.8 billion over the next ten years.

The lawsuit, filed by Grant House and Sedona Prince, college athletes, challenged the NCAA’s restriction on earnings from endorsements and sought reparations for past limitations. The plaintiffs pointed to the lucrative television deals, including an $8.8 billion March Madness contract, while athletes received no direct payments despite contributing to the industry’s wealth.

The settlement will distribute $2.77 billion to around 14,000 current and former athletes, dating back to 2016, for lost endorsement revenues. Payments will come partially from NCAA reserves and will also involve contributions from the Power 5 conferences: Big Ten, Big 12, Pac-12, SEC, and ACC. This agreement also introduces a revenue-sharing model, allowing universities to allocate up to $21 million annually directly to student-athletes starting fall 2025.

This development follows recent changes allowing athletes to profit from their Name, Image, and Likeness (NIL), and amid heightened scrutiny and legal challenges against the NCAA’s amateurism model. This move may lead to further legal and legislative actions to solidify the new compensation structures and address ongoing issues.

The settlement awaits approval from a federal judge and potential obstacles, but it marks a significant shift towards professionalizing college sports and ensuring athletes are compensated for their contributions.