• Loading stock data...
Monday, June 23, 2025

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
Exclusive

Chip Caray Will Not be Suspended for Accidental Homophobic Slur: Sources

The verbal stumble was followed by over 30 seconds of silence.
Read Now
June 21, 2025 |

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.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Thunder Win NBA Finals Behind Young, Deep, and Cheap Roster

The Thunder’s young and cheap roster won its first title Sunday.

Pacers Lose Haliburton in NBA Finals—and Possibly for a Season

Haliburton entered the game with a right calf strain he played Game 6 with.
Mar 15, 2025; Fort Worth, TX, USA; UAB Blazers forward Yaxel Lendeborg (3) dribbles the ball upcourt against the North Texas Mean Green during the first half at Dickies Arena

NIL Is Shrinking the Pool of NBA Draft Entrants

Agents are now advising many players to stay in school.
exclusive

Chip Caray Will Not be Suspended for Accidental Homophobic Slur: Sources

The verbal stumble was followed by over 30 seconds of silence.

Featured Today

Apr 24, 2025; Green Bay, WI, USA; Penn State Nittany Lions defensive end Abdul Carter on the red carpet before the 2025 NFL Draft at Lambeau Field

‘More Is More’: The Elite Luxury Jewelers Decking Out Athletes

Meet the elite group of luxury designers crafting the biggest statement pieces.
Dec 5, 2024; Miami, FL, USA; FIFA president Gianni Infantino presents the FIFA Club World Cup trophy during the Club Word Cup draw at Telemundo Studios.
June 15, 2025

Revamped Club World Cup Is FIFA’s Billion-Dollar Gamble

The revamped soccer event debuts amid controversy.
Jun 10, 2025; Nashville, Tennessee, USA; United States head coach Mauricio Pochettino stands during the anthem against the Switzerland during the first at Geodis Park
June 14, 2025

Gold Cup Is Complicated for USMNT—but U.S. Soccer Has Its Eyes on..

Uncertain tournament success isn’t fazing forward-looking U.S. soccer.
Jan 24, 2017; Davidson, NC, USA; The Davidson Wildcats student section cheers during the first half against the Duquesne Dukes at McKillop Court at John M. Belk Arena. Davidson defeated Duquesne 74-60.
June 6, 2025

Every College Wants a Flashy Basketball GM Hire Right Now

The role is more important than ever, and the definition is ever-evolving.
Wisconsin cornerback Xavier Lucas (6) is shown during the first quarter of their game against South Dakota Saturday, September 7 , 2024 at Camp Randall Stadium in Madison, Wisconsin.

Wisconsin Sues Miami for ‘Tampering’ With Football Transfer

Xavier Lucas signed NIL deals in Madison before transferring to Miami.
Washington's Ben Gorsage, right, and Orland Park Sandburg's Mateo Ramiro-Garcia tangle at the start of the Class 3A state 800-meter run Saturday, May 31, 2025 at Eastern Illinois University in Charleston. Gorsage took third place, followed by Ramiro-Garcia in fourth.
June 19, 2025

Dozens of Olympic Sports Have Been Cut in Wake of House v...

Tennis, track and field, and swimming and diving appear heavily impacted.
June 19, 2025

Omaha Delivers Again: LSU, Coastal Carolina Set for CWS Showdown

LSU and Coastal Carolina begin their three-game series Saturday.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Ted Leonsis unpacks basketball’s global rise, media rights, and portfolio ownership.
Jun 16, 2025; Omaha, Neb, USA; Arkansas Razorbacks starting pitcher Gage Wood (14) celebrates completing a no hitter against the Murray State Racers at Charles Schwab Field.
June 17, 2025

College World Series Enters Cinderella Era

A series of upsets gives the fast-growing event a new look this year.
Jun 14, 2025; Omaha, Neb, USA; LSU Tigers starting pitcher Kade Anderson (32) pitches against the Arkansas Razorbacks during the seventh inning at Charles Schwab Field.
June 16, 2025

How College Athlete Buyouts Could Work in the Revenue-Sharing Era

The buyouts could put both players and schools at a disadvantage.
Texas' Sam Hurley watches the announcement of the competitors in the high jump at the 2023 NCAA outdoor track and field championships, June 9, 2023 at Mike A. Myers Stadium in Austin, Texas.
June 16, 2025

Revenue-Sharing Model Could Boost Programs in Football’s Shadow

“We’re not getting paid the millions of dollars that football is.”
UT
June 12, 2025

Zakai Zeigler Denied Injunction for Fifth Year at Tennessee

The former Tennessee guard sued the NCAA over potential lost NIL earnings.