After several delays, a judge granted preliminary approval Monday for the $2.78 billion settlement between the NCAA and current and former student-athletes that will pave the way for schools to pay players.
Judge Claudia Wilken had sent both parties back to the drawing board earlier in September, asking that certain language in the settlement be revised before moving forward. At the time, Wilken said she had concerns over key terms of the deal, noting that she was primarily concerned that the deal would require boosters only provide money to athletes for a "valid business purpose."
Attorneys reported back to Wilken by proposing changes to their original agreement in hopes of persuading Wilken that the settlement will not prohibit any deals that are currently allowed and that the NCAA’s regulatory authority to enforce pay-for-play rules is not expanded in any way by the settlement.
Sportico reported that the changes include the elimination of the word "booster" from the settlement and clarification that NCAA enforcement of pay-for-play rules regarding NIL will be limited to review of deals with people and entities who are closely affiliated with schools — but not established brands like Nike and Reebok. The revisions also exempt NIL deals with individuals when their families provide less than $50,000 to a school.
According to the Associated Press, a final hearing is now set for April 7, 2025, the day that one of college sports’ biggest moneymakers, March Madness, comes to a close with college basketball’s national title game. If finalized, the deal would allow the biggest schools to establish a pool of about $21.5 million in the first year to distribute money to athletes through a revenue-sharing plan. Athletes would still be able to cut name, image and likeness deals with outside groups.
Former college athletes from as far back as 2016 would be able to apply for their share of $2.576 billion set aside to help them recoup money they could’ve made from NIL deals, which weren’t allowed until 2021.
“We are pleased that we are one step closer to a revolutionary change in college athletics that will allow billions in revenue sharing,” said plaintiff attorney Steve Berman.
