Particle.news
Download on the App Store
5 ARTICLES
·
last mo.

Landmark $2.78 Billion College Sports Settlement Awaits Final Approval

Judge Claudia Wilken is expected to approve the historic deal on Monday, paving the way for athlete revenue sharing and reshaping NCAA policies starting in the 2025-26 academic year.

The Cal football team takes the field for the 27th Big Game against Stanford at Memorial Stadium in Berkeley on Nov. 23.
Cal’s Ioanna Krimili drives against Stanford’s Elena Bosgana as Cardinal head coach Kate Paye watches in the second quarter at Maples Pavilion on Jan. 23. 
NCAA President Charlie Baker speaks during a College Athlete Day event to celebrate men's and women's NCAA championship teams from the 2022-2023 academic year on the South Lawn of the White House on June 12, 2023 in Washington, D.C.
Image

Overview

  • The $2.78 billion 'House settlement' aims to resolve three antitrust lawsuits, allowing Division I schools to share revenue with athletes and provide over $20 million in annual direct payments starting in 2025-26.
  • Bay Area schools, including Cal and Stanford, have been preparing for the financial and operational shifts, with prominent alumni like Andrew Luck and Ron Rivera aiding efforts to secure funding and manage changes.
  • The settlement removes scholarship limits, enabling schools to expand opportunities for athletes, but smaller institutions face financial strain, with some considering dropping to lower divisions.
  • Uncertainty remains around Title IX compliance, particularly regarding equitable revenue distribution between male and female athletes, amid conflicting federal guidance and potential Congressional involvement.
  • The settlement primarily benefits athletes in revenue-generating sports like football and men’s basketball, intensifying concerns about equity for non-revenue sports and smaller programs.