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U.S. Judge Approves $2.8 Billion Settlement, Clearing Path for Colleges to Compensate Athletes Millions


A federal judge has approved a monumental change in college sports, allowing schools to pay athletes substantial sums of money, marking the end of a century-long amateurism model. This decision follows a nearly five-year legal battle initiated by Arizona State swimmer Grant House against the NCAA, which culminated in U.S. Judge Claudia Wilken’s approval of a settlement unlocking millions in revenue sharing. Schools can now distribute up to $20.5 million in the coming year and $2.7 billion over a decade to athletes who have previously been denied access to these funds.

The agreement signifies a profound transformation for over 1,100 NCAA member schools and their nearly 500,000 athletes, especially those in revenue-generating sports like football and basketball. It shifts oversight from the NCAA to the four primary conferences: ACC, Big Ten, Big 12, and SEC, which wield considerable influence over major events like the College Football Playoff.

The ruling also addresses roster limits that had been a point of contention. Wilken approved provisions allowing athletes cut from squads to return to their original schools or transfer without being affected by these limits.

While star athletes in football and basketball are set to benefit significantly—such as Michigan’s quarterback with an NIL deal valued at $10 million—some walk-on players and Olympic sport athletes may suffer as their opportunities diminish. The settlement, crafted amid ongoing litigation threats and varying state laws regarding NIL compensation, aims to provide a more equitable financial landscape for college athletes, though challenges remain. NCAA President Charlie Baker continues to advocate for a unified federal approach to ensure consistency in the evolving landscape of college athletics.

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