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HOUSE V. NCAA
$2.77B SETTLEMENT
Find out what happened, what you need to know, and how this settlement will affect you.
A BIG WIN FOR COLLEGE ATHLETES...
BUT HOW DID WE GET HERE?
The NCAA is set to pay over $2.7 billion in damages to college athletes for NIL compensation they have been previously unable to receive.
While this agreement is a great start, there are still unanswered questions on how schools will decide to share revenue with their athletes—and a distinct lack of athlete voices involved in the decision-making.
VIDEO: Jim Cavale on the House Settlement filing
HOW MUCH COULD YOU EARN?
Sign up now and get notified when athletes can receive an estimate of their damages payment.
STAY INFORMED ON HOUSE V. NCAA
Interested in learning more? Meet with the Athletes.org team, and get your questions answered! Submit your availability for a Zoom presentation below, and get notified when you can tune in!
YOUR PIECE OF THE PIE
In addition to the $2.7 billion in damages, this settlement also allows D1 schools to pay their athletes directly:
D1 athletes can earn up to 22% of P5 average annual athletics revenue, to be decided by the individual schools.
NBA players receive ~51% of all basketball revenue. Negotiated by the National Basketball Players Association.
NFL players receive ~49% of all football revenue. Negotiated by the National Football League Players Association.
THE PEOPLE HAVE SPOKEN:
ATHLETES.ORG IN THE SETTLEMENT
Thanks to the tremendous support of member athletes, Athletes.org has been mentioned by name within the settlement. And this is only the beginning.
By encouraging teammates and friends to sign up, you’re helping expand AO’s ability to advocate alongside its members, and give college athletes a seat at the table in the matters affecting them.
SETTLEMENT PROS & CONS
PROS:
- Damages are an acknowledgement of the unlawful subjugation employed over college athletes.
- This settlement could indicate the ushering in of the revenue-sharing era of college athletics.
CONS:
- Athlete compensation is capped at 22%, with no specified minimum. This means schools can collude at various levels to invest elsewhere besides compensating athletes.
- The framework for schools to pay athletes creates a massive risk of schools taking advantage of athletes and the use of their NIL. Without collective negotiation, schools can require athletes to give away their rights or obligate them to activities beyond minimum standards.
- Third-party agreements will be subjected to review, which heavily favors the NCAA. This disclosure requirement does not exist in any other industry pertaining to brand partnerships/endorsements.
- If you sign on as a member of the class, you are forfeiting your right to sue the defendants in the future. The NCAA and conferences are banking on you taking the money now, in exchange for ten years of flexibility, continued suppression, and treating athletes as children—not partners.
It’s time to take ownership of the decisions affecting you. In this case, remember to ask yourself:
- Why does this settlement pay out ~$2.7 billion when the potential damages are ~$20 billion?
- How much of the settlement will go to legal fees? How will this affect the compensation available to athletes?
- How did they decide on a revenue cap of 22%, when the pro leagues have a cap of 50%?
- Am I eligible as a walk-on, or an international athlete?
- How will the settlement affect my ability to enter into NIL deals in the future? What are the restrictions?
- Who will oversee the review process for third-party agreements? How can we ensure that process is fair?
- Student fees and fundraising have been considered “university revenue” for quite some time—so why are they not being counted here?
- Why are health and safety benefits not being negotiated as part of this case?
- What provisions are in place to address the concerns of athletes who feel underrepresented or unfairly treated by the settlement?
- Is there any process for athletes to provide feedback on the settlement? How do athletes' get their voices heard?
- Who came up with this framework, and why were athletes not involved in the discussion? How are athlete interests going to be represented without a third-party players’ organization like Athletes.org?
TAKE YOUR SEAT AT THE TABLE
If you believe that athletes should have a say in how schools distribute revenue, sign up FREE today—and join the thousands of members uniting to create a more equitable future for athletes everywhere.
SETTLEMENT SUMMARY
July 26, 2024 | Settlement Filing
The settlement secures $2.576 billion in damages for college athletes who were denied compensation for use of their NILs and for their athletic performance. Under the terms of the settlement, the NCAA will not be able to cap the amount of NIL compensation that athletes can receive from third parties (such as businesses and collectives), and NCAA rules that prohibit schools and conferences from paying NIL compensation to athletes will be eliminated.
~$2.576 Billion will be divided between D1 Athletes at Power 5 Conference Schools (including Notre Dame). See the full breakdown below:
-
$1.815 billion will go to payments for broadcast NIL (use of their NILs in tv
broadcasts) that athletes were denied.
- The average BNIL damages payment for football and men’s basketball will be $91,000, with a range of $15,000 to $280,000.
- The average BNIL damages payment for women’s basketball will be $23,000, with a range of $3,000 to $52,000.
-
$71.5 million will go to payments athletes were denied for use of their NILs in
video games.
- This will range from $300 to $4000 per athlete.
-
$89.5 million will go to compensation for other third party NIL opportunities
athletes were unable to receive because of NCAA rules that prohibited NIL compensation from third
parties before July 1, 2021.
- The average for football and men’s basketball will be $17,000, with a range of less than $1 to $800,000.
- The average for women’s basketball will be $8,500, with a range of less than $1 to $300,000.
- For non-football and basketball athletes, the average will be $5300 with a range of less than $1 to $1,859,000.
-
$600 million will go to an Additional Compensation Settlement Fund for payments
college athletes would have received for their athletic performance.
- The average for football and men’s basketball will be $40,000 per athlete.
- The average for women’s basketball will be $14,000.
- Non-football and basketball athletes will be required to submit a claim to the court to obtain a payment from this settlement fund.
As a result of this settlement, athletes will be paid for their NIL moving forward—the terms of which will be at the discretion of the schools. This means we may see disproportionate asks in return for the NIL compensation that athletes deserve.
In addition to the $2.576 billion in damages, the settlement will allow all Division I schools to make direct payments to athletes, worth up to 22% of the P5 schools’ average athletic revenues each year. This is estimated to be $23.1 million per school for the 2025-26 school year and grow to $32.9 million per school in 2034-35.
These payments will be made to athletes for use of their NILs in connection with institutional brand promotion (to promote their schools and their athletics programs and teams). These payments are expected to start in the fall of 2025, for the 2025-26 school year.
Under the terms of the settlement, the NCAA will not be able to cap the amount of NIL compensation that athletes can receive from third parties (such as businesses and collectives).
NCAA rules that prohibit schools and conferences from paying NIL compensation to athletes will be eliminated.
Assuming the court preliminarily approves the settlement agreement, notices of the settlement will go out to athletes starting October 1, 2024. These will be mailed out, with schools responsible for providing addresses. Athletes will then have 105 days to opt out or object to the terms of the settlement.
- If athletes support the settlement terms, and wish to remain as class members, they don’t need to do anything.
- At least 150 days after October 1, 2024 (the class notice date), the court will hold a final approval hearing for the settlement. Athletes that are members of the class will be able to appear and explain their objections to the settlement.
Proposed Schedule for Notice and Final Approval:
| EVENT | DEADLINE |
|---|---|
| Entry of Order Granting Preliminary Approval and Directing Notice | Subject to Court’s Discretion |
| Notice Campaign and Claims Period Begins ("Notice Date") | October 1, 2024 or two weeks after Preliminary Approval Order (whichever is later) |
| Allocation Estimate Available | 60 Days after Notice Date |
| Motion for Attorneys’ Fees, Reimbursement of Litigation Expenses, and Service Awards | 60 Days after Notice Date |
| Exclusion and Objection Deadline | 105 Days after Notice Date |
| Motion for Final Approval and Response to Objections | 135 Days after Notice |
| Final Approval Hearing | At least 150 Days after Notice Date (at the convenience of the Court) |
| Claims Period Closes | 165 Days after Notice Date |
Football and Men’s Basketball: All current and former college athletes who have received full GIA scholarships and compete on, or competed on, a Division I men’s basketball team or an FBS football team, at a college or university that is a member of one of the Power Five Conferences (including Notre Dame), at any time between June 15, 2016 and the date of final judgment in this matter.
Women’s Basketball: All current and former college athletes who have received full GIA scholarships and compete on, or competed on, a Division I women’s basketball team at a college or university that is a member of one of the Power Five Conferences (including Notre Dame), at any time between June 15, 2016 and the date of final judgment in this matter.
Additional Sports: Excluding members of the Football and Men’s Basketball Class and members of the Women’s Basketball Class, all current and former college athletes who competed on a Division I athletic team at any time from June 15, 2016 through the date of final judgment in this matter, including those who (i) have received a full or partial GIA and/or (ii) received compensation for the use of their name, image, and likeness since July 1, 2021 while a college athlete if they competed in the same Division I sport prior to July 1, 2021.
May 24, 2024 | Settlement Announcement
As a result of the House v. NCAA case, the NCAA is set to pay $2.77 Billion in damages over 10 years for NIL compensation that Division I athletes were previously unable to receive. The settlement will also include a model that allows Power 4 schools (and potentially all Division I schools) to directly pay NIL compensation to athletes. College athletes will be automatically opted in to these terms, which will take effect in the Fall of 2025.
The NCAA will pay $2.77 Billion in damages to members of three separate classes: (1) Power 5 football and men’s basketball players who received full athletic scholarships and who competed between June 15, 2016 and November 4, 2023, (2) Power 5 women’s basketball players who received full athletic scholarships and who competed between June 15, 2016 and November 4, 2023, and (3) all current and former Division I college athletes who competed on a team prior to July 1, 2021 and received NIL compensation between July 1, 2021 and November 4, 2023.
The settlement terms will also introduce the elimination of scholarship limits for Power 4 schools and the introduction of new roster limits—as well as resolving two other pending antitrust cases brought against the NCAA and the Power 5 conferences: Hubbard v. NCAA and Carter v. NCAA. You can read more about those here.
Under the settlement terms being discussed, new NCAA college athletes will be automatically opted into the above terms on an annual basis unless they themselves object and petition the court to not be included.
Join Athletes.org and encourage your teammates to sign up for YOUR Players’ Association so you can stay up-to-date on these massive events happening in college athletics—and so you can organize, unify, and stop being ignored by leaders in college athletics.
Tell your coaches to sign this petition that supports your right as a college athlete to join a college athlete association, so you can discuss and negotiate a fairer model for college athletics.
If you have high school friends who have signed letters of intent to play in college, encourage them and their parents to sign this petition that informs the world that they do not plan on agreeing to the terms of this settlement when they enter college, because it was not negotiated with a player’s association/advocacy group.
RESOURCES TO HELP YOU
Learn more about Athletes.org, and see how we’re changing college sports. For questions, email us at support@athletes.org.
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FOR ATHLETES. BY ATHLETES
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