The National Collegiate Athletic Association (NCAA) has made a groundbreaking decision that could change the landscape of college sports in the US. After reaching an agreement with five league conferences, the NCAA has paved the way for college athletes to potentially get paid for their participation.
This deal, which includes $2.8 billion in damages for current and former student athletes, comes as a settlement to three separate antitrust actions against the NCAA. While the agreement still needs to be voted on by the plaintiffs and approved by a federal judge, it marks a significant step towards reforming college sports.
For years, college athletes have not received any compensation for their efforts on the field. However, with the US Supreme Court striking down limits on athlete compensation in 2021, players have been able to profit from their name, image, and likeness. Now, with the new rules allowing athletes to receive a portion of the revenue generated by their sports, college athletes could see a significant change in their financial status.
The agreement, set to take effect in the 2025-26 academic year at the earliest, will see athletes receiving a share of the revenue, with reports suggesting around $20 million per year or 22% of annual athletic department revenue. While the final details are still being worked out, the agreement has been met with enthusiasm from both sides.
“This is a revolutionary moment in college sports,” said one of the plaintiff lawyers, Steve Berman. “The time to bring a fair compensation system to college athletes has finally arrived,” added Jeffrey Kessler, another plaintiff lawyer. With college sports generating billions of dollars in revenue, this agreement could have a significant impact on the future of collegiate athletics in the US.
