Gavel stock photos.
The Pac-12 became the fifth and final powerhouse conference to approve settlement terms in a multibillion-dollar antitrust lawsuit against the NCAA, paving the way for college sports to adopt a groundbreaking revenue-sharing plan with athletes.
The presidents and chancellors of the conference's 12 universities voted (electronically) Thursday afternoon to accept the terms, along with their colleagues from the ACC, Big 12, Big Ten, SEC and NCAA Board of Governors.
All six defendants approved House of Representatives v. NCAA A costly trial, which was necessary before the settlement could be implemented, was avoided.
The commissioners of the five conferences and NCAA President Charlie Baker released the following statements:
“The agreement by the five autonomous conferences and the NCAA to settlement terms marks an important step in the continuing reform of college sports that will benefit student-athletes and bring transparency to college sports in all divisions for years to come.”
“This settlement also serves as a roadmap for college athletics leaders and Congress to ensure this uniquely American institution can continue to provide unparalleled opportunities to millions of students. Everyone at Division I made today's progress possible, and as the legal process continues, we all have work to do to implement the terms of the agreement.”
“We look forward to working with our diverse student-athlete leadership group to write the next chapter in collegiate sports.”
Many details remain to be worked out in the coming months. However, House The lawsuit, named after former Arizona State University swimmer Grant House, would revolutionize college sports and destroy the NCAA's century-old model of amateurism.
Payments are split into two buckets:
— The damages amount to $2.8 billion and will compensate thousands of former college athletes who were denied the right to profit from their name, image and likeness (NIL) before it became legal in the summer of 2021.
The NCAA plans to make up the amount by using reserve funds and by withholding future distributions to Division I schools funded by March Madness television contracts with Turner and CBS.
— The injunction portion seeks to create a revenue-sharing plan between athletic departments and current and future athletes based on the use of NIL in conference media contracts with television partners.
Athletic departments across the country set an allowable revenue-sharing cap of about $20 million per year, meaning schools can distribute up to that amount to athletes but are not obligated to meet that target.
There will be a lot of pressure on major football-playing schools to make maximum offers or be penalized in recruiting.
The settlement also requires schools to increase enrollment in certain sports, which is expected to increase annual costs by about $10 million. House Over $30 million.
It's a steep price to pay, but if the case goes to trial in January, the total damages could triple under U.S. antitrust law.
(The changes are scheduled to take effect in fall 2025 at the earliest.)
“The schools are fortunate to have this settlement,” an industry source said. “It's a pretty fair deal. What's unfair is the current system, where the players aren't sharing in the revenue they generate.”
There are several unresolved issues, including the impact of revenue sharing on Title IX compliance in major college sports.
A 1972 federal law requires athletic departments to provide equal treatment for female athletes, but it's unclear how the law's language relates to the new economic model.
Football and men's basketball generate revenue that funds all other sports. Should schools split the revenue equally between male and female athletes, or simply provide equal opportunity (participation)?
Also, House The settlement does not address the role of benefactor-run NIL organizations that spend millions of dollars on transfers to powerful conference schools and acquiring new players.
It also makes no mention of the National Labor Relations Board's push to create a union for athletes.
Or another antitrust lawsuit filed against the NCAA in Colorado.
To paraphrase Churchill, House This settlement is not the beginning of the end of the college sports revolution, but it may be the end of the beginning.
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