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Thousands of former college athletes now have the opportunity to claim their share of a $2.8 billion settlement from the NCAA. This settlement is the result of a crucial case that challenged the NCAA's past rules about athletes not receiving compensation for their name, image, and likeness (NIL).
Historically, these athletes couldn't earn money outside of scholarships. However, new rules in 2021 changed this, allowing them to profit from endorsements and similar deals.
Athletes who played from 2016 onwards are eligible to file claims, with the largest sum possible being up to $1.85 million per individual.
While a few of these athletes might now be pursuing high-paying careers in professional sports, many others may not have that opportunity, making these payments potentially life-changing.
A website dedicated to the settlement is now available, and eligible athletes will soon receive notifications on how to begin the claims process.
Though there are still some legal steps to complete, a judge has given preliminary approval for the settlement, marking the start of a new era in college sports.
Who Gets Paid?
The settlement identifies three main groups of athletes who are eligible for payments. These include football and men's basketball players from the Power Five conferences, women's basketball players from these same conferences, and all other Division I athletes.
The Power Five conferences consist of some of the top NCAA conferences: the Atlantic Coast, Big Ten, Big 12, Southeastern, and the smaller Pac-12. These groups receive different payment amounts based on the estimated value they brought in.
Men's football and basketball players are expected to get the most, averaging about $135,000 each, and women's basketball players from these conferences are looking at an average of $35,000. Other athletes may receive smaller amounts, ranging from a few hundred to several thousand dollars.
Over 400,000 athletes could file claims, but the exact payout depends on several factors. These include how much revenue their school generated, how often they played, and their position's importance in football or contributions to team wins in basketball.
Those who played key positions like quarterback or brought extra victories might see higher payouts.
When Will Athletes Get Paid?
Former college athletes hoping to receive a payout from the $2.8 billion NCAA settlement will need to be patient. According to attorney Luke Fedlam, the exact amount an individual athlete might get will not be clear until at least December.
Payments, once finalized, are planned to be spread out over as long as ten years with annual disbursements. While the settlement is a major step forward for athletes' rights, it is not yet set in stone.
There is still a final hearing scheduled in April, during which the settlement could face potential appeals, especially concerning discussions around Title IX. This federal law ensures that both men’s and women’s sports receive fair treatment.
Athletes do have the option to not be part of the settlement and could take separate legal action against the NCAA or the conferences involved. Despite the ongoing legal hurdles, many are celebrating this pivotal moment in sports history.
As they wait for the claims to be resolved, athletes might find solace in watching things likeNCAAB odds by FanDuel, hoping their victory in court becomes a reality.
Additional Impacts of the Settlement
The $2.8 billion settlement not only aims to compensate former college athletes for missed earnings from TV and marketing rights in the past but also sets a path for how college sports could operate in the future regarding athlete compensation.
A key part of the settlement is a new model for revenue sharing, which could changecollege sports as we know them. Schools may soon be able to dedicate up to $22 million each year to pay athletes.
This shift means that around 70 schools might use this maximum budget by next summer, ushering in a new era of financial support for athletes.
Over the next decade, this could translate to athletes earning between $15 billion and $20 billion collectively. This change offers a more financially secure future for many college athletes, who can now be rewarded not just with scholarships but also with a share of the revenue they help generate.