The House vs. NCAA settlement is on the verge of a final ruling, which is expected to bring monumental changes to college athletics. While a preliminary settlement was reached and Judge Claudia Wilken initially reviewed it in April, she has requested revisions and is now close to a final decision.

Here’s a breakdown of the latest updates and key details of the proposed settlement:

Key Provisions of the Settlement:

• Back Pay for Athletes: The settlement includes approximately $2.8 billion in back pay for athletes who competed between 2016-2024 and were previously restricted from earning Name, Image, and Likeness (NIL) payments. This money will be distributed over 10 years, with the NCAA covering 40% and schools covering 60%. Most of this back pay is expected to go to football and men’s and women’s basketball players (estimated up to 95%).
• Direct Payments to Athletes (Revenue Sharing): Going forward, schools will be allowed to directly pay student-athletes for their NIL rights. This will be capped at 22% of their annual revenue from sources like media rights, ticket sales, and sponsorships, estimated to be around $20.5 million per school initially, increasing 4% annually over the 10-year agreement.
• NIL Clearinghouse and Scrutiny: While athletes can still pursue external NIL deals, any third-party compensation over $600 will need to be reported and scrutinized by a clearinghouse (developed by Deloitte) to ensure it’s a legitimate deal and not “pay-for-play.”
• Elimination of Scholarship Limits, Introduction of Roster Limits: The settlement would eliminate traditional scholarship limits and replace them with new roster limits for each sport. This has been a significant point of concern, as it could lead to some athletes losing roster spots. Attorneys have filed briefs to address these roster limit concerns, aiming to “grandfather” current players.
• New Enforcement Model: College Sports Commission (CSC): A major development is the proposed creation of a “College Sports Commission” (CSC) by the Power Four conferences (ACC, Big Ten, Big 12, SEC). This new entity is expected to oversee the revenue-sharing cap and the NIL clearinghouse, effectively taking over much of the NCAA’s traditional enforcement role regarding athlete compensation. The CEO of this commission is expected to be announced quickly after the settlement is finalized. NCAA President Charlie Baker has indicated that the NCAA will no longer enforce college amateurism rules.

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Current Status and Remaining Challenges:

• Judge’s Approval: U.S. Judge Claudia Wilken has delayed final approval twice, primarily due to concerns about the impact of roster limits on athletes. Attorneys have submitted revised plans to address these concerns, hoping to secure final approval soon.
• Roster Limit Impact: The potential for roster cuts, particularly in non-revenue sports, has generated significant controversy and concern among athletes and coaches.
• Title IX Implications: There are ongoing questions about how the new revenue-sharing model will impact Title IX compliance, though attorneys for the settlement have argued that it is not the appropriate forum to resolve such issues.
• Future of the NCAA: With the Power Four conferences forming the College Sports Commission, there is speculation about the NCAA’s diminishing authority, particularly concerning athlete compensation rules. Some even suggest that top conferences might eventually break away entirely.
• State Laws: State laws, like the Tennessee NIL law, are increasingly challenging the NCAA’s authority and providing a framework for schools to operate outside of traditional NCAA rules.

The House v. NCAA settlement, if approved, will fundamentally reshape college athletics, moving it closer to a professional model where athletes can be directly compensated by their institutions.