In a landmark decision, the National Collegiate Athletic Association (NCAA) and the five power conferences - the Atlantic Coast Conference (ACC), Big Ten, Big 12, Southeastern Conference (SEC), and Pac-12 - have reached a consensus to permit colleges to remunerate athletes.
This announcement was made public on Thursday, following a multibillion-dollar settlement in the House v. NCAA antitrust lawsuit, as reported by ESPN.
The NCAA is set to disburse over $2.7 billion in damages to both past and present athletes. This payout will be applicable to Division I athletes from 2016 onwards. The method of dividing the $2.7 billion among over 10,000 current and former athletes will be determined using a series of formulas developed by a sports economist.
As part of the agreement, the NCAA and the conferences have consented to a revenue-sharing plan that will see approximately $20 million per school per year being shared with athletes, commencing in the fall of 2025. The group also disclosed that they will proceed with two other federal antitrust cases, Hubbard v. NCAA and Carter v. NCAA.
In a joint statement, NCAA president Charlie Baker and the commissioners of the conferences stated, "The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come. This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students."
They further added, "All of Division I made today's progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our various student-athlete leadership groups to write the next chapter of college sports."
John I. Jenkins, president of Notre Dame, which is a member of the ACC and also agreed to the settlement, expressed to Sports Illustrated that the settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics."
Jenkins emphasized the need for legislative intervention, stating, To save the great American institution of college sports, Congress must pass legislation that will preempt the current patchwork of state laws; establish that our athletes are not employees, but students seeking college degrees; and provide protection from further antitrust lawsuits that will allow colleges to make and enforce rules that will protect our student-athletes and help ensure competitive equity among our teams.
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