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NCAA Settlement to Allow Direct Athlete Payments Gains Preliminary Approval

A federal judge has preliminarily approved a $2.78 billion settlement that could transform college sports by enabling schools to share revenue directly with athletes.

  • Judge Claudia Wilken's preliminary approval is a critical step toward finalizing the settlement, with a final hearing set for April 7, 2025.
  • The settlement includes a $21.5 million annual revenue-sharing pool for athletes at major schools, starting in the fall of 2025.
  • Former athletes from 2016 onward can claim a portion of the $2.576 billion set aside for past NIL restrictions.
  • The settlement aims to regulate future NIL deals and replace scholarship caps with roster limits, raising concerns about Title IX compliance.
  • While the deal marks progress, objections remain over restrictions on boosters and potential impacts on future athletes' earning potential.
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