The National Collegiate Athletic Association and five power conferences—collectively representing more than 60 schools—agreed yesterday to a $2.8B class-action settlement, paving the way for universities to directly pay college athletes for the first time. If finalized, the plan would go into effect as soon as next year and reverse the amateur college sports model in place since 1906.
Yesterday’s proposed settlement is a revenue-sharing model in which schools would pay athletes a cut of the money received from sponsorships, broadcasting rights, and ticket sales. Division I schools would have the ability to distribute up to $20M per year to their athletes. The settlement would also resolve claims of missed back-pay for current and former college athletes dating back to 2016, ending three antitrust cases, with a fourth case—Fontenot v. NCAA—still pending.
The agreement now heads to a federal judge for approval, a process that could take months
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