Tuesday, May 5, 2026

Federal Judge Approves House v. NCAA Settlement, Allowing College Athlete Pay

The House v. NCAA settlement will allow all Division I schools to directly pay players for the first time in NCAA history. 

Apr 5, 2025; San Antonio, TX, USA; Florida Gators forward Sam Alexis (4) and Florida Gators center Micah Handlogten (3) celebrate after defeating the Auburn Tigers in the semifinals of the men's Final Four of the 2025 NCAA Tournament at the Alamodome.
Robert Deutsch-Imagn Images
San Francisco, CA - February 5, 2016- The GeneralÕs Residence at Fort Mason: Stephen A. Smith and Skip Bayless on the remote set of First Take during coverage for Super Bowl 50.(Photo by Tony Avelar / ESPN Images)
Exclusive

Skip Bayless to Reunite With Stephen A. Smith on Friday’s ‘First Take’

Bayless previously hosted “First Take” from 2007 to 2016.
Read Now
May 4, 2026 |

Starting July 1, all Division I schools will be able to directly pay players for the first time in NCAA history. 

That’s all thanks to the House v. NCAA settlement, which federal judge Claudia Wilken approved on Friday after months of deliberation and a lengthy objection process. (Over the past few weeks, the settlement was almost tanked due to an issue over roster limits—but a solution submitted on May 7 appears to have satisfied Wilken’s concerns.)

The settlement will usher in a new era in college sports where athletes aren’t considered employees, but can finally get a cut of the billions of dollars of broadcast revenue they’ve helped generate.

In her 76-page opinion, Wilken called it “outstanding” that lawyers were able to negotiate on behalf of players and acknowledged that both she and the lawyers have been adjudicating and litigating major antitrust claims against the NCAA for more than a decade.

“The settlement agreement here reflects compromises that were made in light of those legal Precedents [referring to previous cases], which demonstrate that success at trial can mean that student-athlete compensation restrictions may be lessened but not eliminated,” Wilken wrote. “Despite some compromises, the settlement agreement nevertheless will result in extraordinary relief for members of the settlement classes. … It would permit levels and types of student-athlete compensation that have never been permitted in the history of college sports, while also very generously compensating Division I student-athletes who suffered past harms.”

In a letter to schools Friday night, NCAA president Charlie Baker called the settlement “an exciting moment for everyone involved in college sports.” Commissioners across the board published statements praising Wilken’s decision. SEC commissioner Greg Sankey, for example, called it a “significant milestone for the meaningful support of our student-athletes and a pivotal step toward establishing long-term sustainability for college sports.”

The settlement consolidates three federal antitrust cases: House v. NCAA, Carter v. NCAA, and Hubbard v. NCAA. 

House v. NCAA, arguably the most consequential of the three, was filed in 2020 against the NCAA and former Power 5 conferences, arguing that players deserved damages for being prohibited from earning NIL (name, image, and likeness) payments before the NCAA changed its rules in 2021. It also argued that the definition of NIL should be expanded to include things like broadcast television rights fees. 

The settlement will offer $2.8 billion in damages, as well as allow all D-I schools to offer up to $20.5 million to all the current players in their athletic departments (a number that increases incrementally over 10 years, during the lifetime of the injunctive relief). Schools must offer money to all sports, though they don’t have to offer equitable amounts; the Trump-led Department of Education has said that revenue-sharing payments wouldn’t be subject to Title IX. Wilken noted in her opinion that an outside expert estimated the 10-year figure would amount to $19 billion in “new benefits and compensation” for current and future athletes. Going forward, there will also be no limits on scholarships—with roster limits replacing them. 

The settlement does have other stipulations, however. 

NIL collectives will face more scrutiny with deals they offer players. The settlement sets up a clearinghouse to check whether NIL collective deals appear to be “fair-market value,” instead of “pay-for-play” deals. The clearinghouse is run through software created by Deloitte, with the opportunity for appeal to an independent body.

The most controversial part of the settlement was roster limits. Hundreds of current college athletes and prospective athletes in high school lost roster spots they were promised for the upcoming school year. After flooding the court with objections and raising awareness on social media, they succeeded in swaying Wilken to demand that the settlement guarantee no athletes would lose roster spots as a result of the proposal’s implementation. The parties submitted a solution two weeks later that allows schools to give players their roster spots back—but didn’t require that they do so.

Wilken said that this solution was satisfactory. She added that schools shouldn’t be forced to return roster spots because, as the NCAA had noted, “roster spots aren’t guaranteed.” She also noted that eliminating scholarship prohibitions would result in tens of thousands of new scholarships for players currently and in the future. Finally, she said that athletes could sue for damages over the implementation of roster limits.

Wilken was not swayed by concerns that objectors raised such as gender inequity in damage payments and the lack of representation for future athletes. 

She said several suggested the revenue-sharing cap itself violates antitrust law—but that as with roster limits, athletes were free to sue the NCAA and power conferences for damages related to the cap on revenue-sharing. She also defended the legality of the NIL clearinghouse, and said that neutral arbitration would “be accompanied by due process protections and a degree of transparency that class members do not have under current NCAA rules.”

For athletic departments, the next step will be implementation. They’ve already spent months preparing for this new era by hiring “general managers,” announcing plans for how they’ll split up the funds among teams, and looking for new fundraising opportunities. Meanwhile, NIL collectives have begun offering player contracts that frontload multiple years of an NIL deal before July 1, so they aren’t subject to the clearinghouse. Collectives have also begun altering their strategies in order to comply with the new rules. 

Schools will have 30 days to submit lists of “designated student-athletes” who will be exempt from roster limits. Individual teams will have to decide whether to offer these players their spots back.

The power conferences—which will be tasked with enforcing the revenue-sharing cap, NIL clearinghouse, and roster limits—have created an enforcement entity, called the “College Sports Commission,” which launched formally Friday night with a website and an account on X. A press release said the commission’s first CEO would be former MLB executive Bryan Seeley.

The NCAA will not be involved in the College Sports Commission. “As the defendant conferences now own several facets of rulemaking and enforcement related to specific settlement areas, the NCAA will be able to move away from certain enforcement activity that, despite the best efforts of many, wasn’t working well,” Baker said.

The NCAA and power conferences will undoubtedly take the settlement to Congress as part of their multimillion-dollar federal lobbying campaign to regain control over the athletes’ rights movement, and guarantee that players aren’t employees even though they’re getting paid.

Employment remains the biggest existential question. Wilken said that the settlement wouldn’t preclude college athletes from engaging in collective bargaining in the future if they were deemed employees. But she noted: “This is an antitrust action, not a labor law case. The question of whether student-athletes are employees who can unionize and engage in collective bargaining is not one for adjudication and resolution in this litigation.”

This field is for validation purposes and should be left unchanged.

Sign up for
The Memo Newsletter

Get the biggest stories and best analysis on the business of sports delivered to your inbox twice every weekday and twice on weekends.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Apr 22, 2026; Saint Paul, Minnesota, USA; Minnesota Wild center Joel Eriksson Ek (14) celebrates his goal with teammates during the second period in game three of the first round of the 2026 Stanley Cup Playoffs against the Dallas Stars at Grand Casino Arena.

Main Street Sports Now One Step Closer to Official Demise

The embattled regional sports network operator reaches another inflection point.
In this photo illustration, a mobile device displays the Kalshi logo while a laptop displays the webpage of the prediction market platform in Copenhagen, Denmark, on February 10, 2026. (Photo by Kristian Tuxen Ladegaard Berg/NurPhoto)

Leagues Weigh In on Future Prediction Market Regulation

Safeguarding integrity and protecting consumers were common themes.
San Francisco, CA - February 5, 2016- The GeneralÕs Residence at Fort Mason: Stephen A. Smith and Skip Bayless on the remote set of First Take during coverage for Super Bowl 50.(Photo by Tony Avelar / ESPN Images)
exclusive

Skip Bayless to Appear on ESPN’s ‘First Take’ on Friday

Bayless previously hosted “First Take” from 2007 to 2016.

NBA Playoffs Get Strong Early Ratings

It’s unclear whether Luka Dončić will return in the second round.

Featured Today

Kaitlin Oaks (left) from Tampa looks at photos with Layla Abutha from Tampa while attending Thurby at Churchill Downs during the week of Kentucky Derby on Thursday, April 30, 2026.

Kentucky Derby Is Courting Gen Z

Churchill Downs is mixing traditional splendor with a youthful atmosphere.
INDIANAPOLIS, INDIANA - MARCH 25: Caitlin Clark of the Indiana Fever sits on the baseline and makes photographs during the Indiana Pacers game against the Los Angeles Lakers at Gainbridge Fieldhouse on March 25, 2026 in Indianapolis, Indiana.
April 22, 2026

Why Athletes Are Moonlighting As Sports Photographers

Athletes are swapping courtside seats for sideline cameras.
Quinnipiac women's varsity rugby
April 21, 2026

The Death of Quinnipiac Women’s Varsity Rugby

The sudden decision at Ilona Maher’s alma mater left players blindsided.
April 17, 2026

The Lawyer Steering the NIL Era

In the new era of college sports, Darren Heitner is everywhere.
Empty tennis courts

‘In Shock’: Why College Tennis Programs Are Disappearing

In just one week, four D-I schools announced they’d eliminate tennis programs.
Apr 6, 2026; Indianapolis, IN, USA; Michigan Wolverines head coach Dusty May celebrates with the trophy after defeating the UConn Huskies in the national championship of the Final Four of the men's 2026 NCAA Tournament at Lucas Oil Stadium.
April 30, 2026

Dusty May: Another Men’s Championship Will Cost $10M or More

“We anticipate it to be much greater next year,” May told FOS.
Jan 29, 2026; Washington, District of Columbia, USA; Former Washington Wizards guard John Wall looks on before a game against the Milwaukee Bucks at Capital One Arena. Mandatory Credit: Daniel Kucin Jr.-Imagn Images
April 30, 2026

John Wall Joins Howard As President of Basketball Operations

Wall has already weighed in on the Bison’s roster.
Sponsored

Why Brandon Marshall Bet on Athlete-Owned Media

Brandon Marshall on athlete media, life after football, building I AM ATHLETE.
Nov 15, 2025; Provo, Utah, USA; The BYU Cougars offense lines up against the Texas Christian University Horned Frogs defense during the first half at LaVell Edwards Stadium.
April 29, 2026

Big 12 Presidents Approve Deal With RedBird Capital

“We’ve got a strong bench now,” Brett Yormark told FOS about the deal.
April 29, 2026

NCAA To Pay Millions to Tennis Players, Tweak Prize Money Rules

The settlement says the NCAA already changed its prize money rules.
April 29, 2026

Dusty May Says Unsigned Michigan Deal Is Just a ‘Formality’

May told FOS he won’t sign his new contract until July. 
UConn Huskies forward Tarris Reed Jr. (5) backs down Michigan Wolverines center Aday Mara (15) on Monday, April 6, 2026, during the NCAA men’s basketball national championship game at Lucas Oil Stadium in Indianapolis.
April 28, 2026

NCAA Nears Decision to Expand, but Key Steps Remain 

“No final recommendations or decisions have been made at this time.”