NCAA, 5 power conferences, agree to allow universities to pay student athletes

ESPN reported that the announcement came following a multibillion-dollar agreement in the House v. NCAA antitrust case. According to the outlet, the NCAA will pay over $2.7 billion in damages to past and current athletes. Division I athletes from 2016 forward are eligible to receive a portion of the payout.

A sports economist developed a series of formulas that will reportedly be used to determine how to split the $2.7 billion among over 10,000 current and former athletes. As part of the agreement, the NCAA and the conferences agreed to a revenue-sharing plan of approximately $20 million per school per year with athletes that will start in the fall of 2025. The group also announced that they are proceeding with two other federal antitrust cases, Hubbard v. NCAA and Carter v. NCAA.

NCAA president Charlie Baker and the commissioners of the conferences wrote in a joint statement, "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."

"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 also agreed to the settlement as a member of the ACC, said in a statement 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."

He added, “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.”