On Thursday, the NCAA and its five power conferences came to a historic agreement that settled multiple antitrust cases and established a ground-breaking revenue-sharing arrangement that enables colleges to pay athletes for the first time.
Dan Murphy and Pete Thamel of ESPN claim that, should approval be granted, universities will be able to start splitting $20 million a year with their players as early as 2025.
As part of the agreement, three ongoing federal antitrust cases would be settled, and athletes from the past and present would get $2.7 million in damages. Athletes who competed in Division I starting in 2016 are eligible, but they also have to give up their ability to sue the NCAA for “other potential antitrust violations.”
A more equitable system may be sparked by the settlement, particularly in college football. However, athletes and their advocates may still object to future rights and compensation, which could lead to a modification of the revenue-sharing arrangement. Similarly, athletic directors are similarly concerned about the uncertainties.
“Some of the challenges to solve include figuring out how to distribute the revenue share money in a way that meets market needs while complying with Title IX laws and if schools can regain control of the marketplace for college athletes, which has been outsourced during the last three years to a group of booster collectives, who pay athletes via name, image and likeness endorsement deals,” the report from ESPN stated.
But likeness, name, and image deals may soon become obsolete. Steve Berman, co-lead counsel for collegiate athletes, told ESPN that the settlement included a “mechanism” that would effectively destroy the NIL marketplace, though he would not go into details.
The cases must be formally ended and the settlement terms must still be approved by the judge, which might take many months. However, given how quickly college sports are evolving, it appears as though the biggest upheaval in NCAA history is just getting started.