NCAA To Settle Class Action Lawsuit, Bringing $2.77B Windfall To College Athletes Past And Present – Update

deadline.com:

UPDATE: Details of the plan were filed Friday in federal court in the Northern District of California. “College athletes will finally be able to share in the billions of dollars their compelling stories and dynamic performances have generated for their schools, conferences, and the NCAA,” the filing said. “This is nothing short of a seismic change to college sports following more than four years of hard-fought victories in this case.” The term sheet includes how nearly $3 billion in damages will be doled out by the plaintiffs over the next 10 years.

Those payouts will vary drastically and are determined by sport played, when, how long and what conference an athlete competed in. EARLIER: It’s a new era in college sports, as the National Collegiate Athletics Association and the five biggest athletic conferences have agreed to a $2.77 billion settlement of a class-action lawsuit, the Wall Street Journal reported.

Details are still being worked out, but what it means is schools can pay athletes directly, sharing with them a portion of the lucrative revenue streams for merchandising, TV rights, ticket sales and other deals.

The settlement agreement resolves a case that began in 2020. The lawsuit sought back pay for athletes, as well as a cut of future broadcast revenues.