Just now: Former NCAA athletes will receive $2.77B in back…..

July 27, 2024 admin AMERICAN FOOTBALL 0

Former NCAA athletes will receive $2.77B in back compensation after lawsuit settlement

Former athletes in the power conferences will receive nearly $2.8 billion in back damages following the settlement filing for multiple class-action lawsuits in a California federal court on Friday.

Settlement documents for three cases — House v. NCAA, Hubbard v. NCAA and Carter v. NCAA — were filed in the Northern District of California, to the benefit of athletes who participated in the ACC, Big Ten, Big 12, Pac-12 and SEC. The settlement will be distributed over 10 years, approximately $280 million annually.

The five conference commissioners and the NCAA released the following joint statement

“This is another important step in the ongoing effort to provide increased benefits to student-athletes while creating a stable and sustainable model for the future of college sports. While there is still much work to be done in the settlement approval process, this is a significant step toward establishing clarity for the future of all of Division I athletics while maintaining a lasting education-based model for college sports, ensuring the opportunity for student-athletes to earn a degree and the tools necessary to be successful in life after sports.”

The settlement also outlined a model for future athlete compensation, in which power conferences will set aside up to 22% of their average annual media, ticket and sponsorship revenue beginning with the 2025-26 academic year. According to the NCAA, student-athletes will receive an additional $1.5 billion-$2 billion annually under the new system.

As previously reported, scholarship limits will be eliminated in all sports, with roster limits instituted instead. Schools can award partial or full scholarships to every athlete on their roster, including 105 in football (up from 85), 15 in men’s and women’s basketball (up from 13), 34 in baseball (up from 11.7) and 25 in softball (up from 12).

Schools in the Group of 5, FCS and those Division I programs that do not play football are not bound by the new roster limits unless they choose to share revenue with athletes. Those schools can opt out of the new compensation model if they choose.

Regarding the back compensation, Yahoo Sports is reporting that 83% of the total will be distributed to 19,000 football and men’s basketball players. Each athlete who is part of the lawsuit would receive $12,000 per year over a 10-year period, for a total of $120,000.

The settlement agreement must be approved by the court, which could take several months. Discrepancies between various state laws and the settlement must also be resolved.

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