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House v. NCAA Settlement Sparks New Age of Student-Athlete Compensation | BakerHostetler

Key Takeaways The NCAA and the Power Five conferences will pay $2.8 billion in damages to current and former student-athletes as a result of their settlement of the landmark antitrust litigation. Division I colleges and universities may now directly compensate student-athletes up to a $20.5 million cap for the 2025-2026 school year – opening the […]

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Key Takeaways

  • The NCAA and the Power Five conferences will pay $2.8 billion in damages to current and former student-athletes as a result of their settlement of the landmark antitrust litigation.
  • Division I colleges and universities may now directly compensate student-athletes up to a $20.5 million cap for the 2025-2026 school year – opening the door for revenue sharing between athletic departments and their student-athletes.
  • All noninstitutional, third-party name, image and likeness (NIL) agreements valued at $600 or more must be reported and independently reviewed for compliance with the terms of the settlement.
  • The NCAA’s former limits on the number of scholarships designated for college sports teams have been eliminated and replaced with limits on the number of players a team may carry on its roster.
  • Several legal questions remain unanswered concerning the administration of the terms of the settlement agreement, including whether future distributions of school revenue will comply with Title IX.

What was once inconceivable in the world of college sports has quickly become a reality. After years of litigation over its rules against athlete compensation, the NCAA has finally changed its tone. In a highly anticipated decision issued on June 6, Judge Claudia Wilken approved the final settlement agreement between the NCAA, the Power Five conferences and a class of former student-athletes in House v. NCAA. The settlement resolves a trio of consolidated cases that allege the NCAA’s scholarship limits and additional restraints on athlete compensation violate anticompetition laws. Now, for the first time in its history, the NCAA will permit colleges and universities to directly pay their student-athletes effective July 1.

$2.8 Billion in Damages To Be Paid by the NCAA and Power Five Conferences

The terms of the settlement agreement require the NCAA to pay more than $2.8 billion in damages to members of multiple student-athlete classes to the lawsuit, which will include all student-athletes who were eligible for Division I competitions at any time on or after June 15, 2016. An overwhelming majority of the damages paid to student-athletes will go to men’s football and basketball players.

Athlete Compensation up to a $20.5 Million Cap

The settlement also outlines the NCAA’s new athlete compensation framework spanning 10 years from the date of Wilken’s final approval. The NCAA will now allow schools to pay their student-athletes up to a $20.5 million cap (the equivalent of 22% of the average athletic department revenue for Power Five conference schools) for the 2025-2026 school year and eventually up to a $32 million cap in 2034-2035. The new rules permit schools to compensate athletes via revenue sharing from funds obtained through the school’s use of the athlete’s NIL, such as profits made from television contracts and events like the College Football Playoff.

Required Reporting and Independent Review for Third-Party NIL Agreements

In a significant change from historical practice, the NCAA will not act as the enforcing authority on the rules of the settlement. Instead, the Power Five conferences will establish an independent review process for third-party NIL deals worth more than $600, including contracts between student-athletes and school-affiliated entities or individuals (i.e., boosters and collectives), which must advance a valid business purpose within a reasonable range of compensation.

The newly established enforcement agency, the College Sports Commission,[1] will be responsible for policing compliance with the terms of the House settlement and evaluating whether reported deals meet fair market value standards. The terms of the settlement require athletes to report qualifying NIL partnerships that exceed the $600 threshold to the commission, and in the event that the proposed deal does not clear the commission’s screening process (which will be conducted by Deloitte, through use of its platform NIL Go), the parties to the deal may revise their agreement or submit the issue to a neutral arbitrator before initiating any legal action.

Scholarship Limits Out, Roster Limits In

The final piece of the House settlement eliminates the scholarship limits that were previously designated by the NCAA for each sport in Division I. Going forward, schools will be able to exercise far more discretion in their assignment of scholarship money to student-athletes across all athletic programs. However, in the interest of maintaining competitive balance, the NCAA will now place firm limits on the number of athletes that a team may carry on its roster.

The initially proposed roster limits were met with several objections from student-athletes concerned that current team members, in particular walk-on student-athletes, would lose their place on their respective rosters due to cuts. For example, football rosters will now shrink to a maximum of 105 athletes and many Division I football programs have previously carried as many as 140 players on the team.[2] In April, Wilken informed the parties that she would not approve the settlement unless the agreement was revised to address the roster limit concerns raised by objectors.

Though the final settlement agreement does not grandfather current players into their respective roster spots, it clarifies that current team members will not count toward their team’s total roster calculation for the rest of their eligibility period. In the event that a current player is cut from their team, the school will be required to honor the player’s scholarship.

The House settlement’s new athlete compensation model will provide student-athletes with ample opportunities to monetize their NIL, but there are still many open questions about the ways in which the settlement terms will be administered. Wilken addressed several legal concerns raised by objectors, but ultimately, her findings could not possibly address all the potential legal challenges that may arise in the future.

Notably, objectors to the settlement have already questioned whether the damages allocation and any back payments to former student-athletes may violate Title IX by unfairly favoring male athletes over female athletes,[3] whether state NIL laws that conflict with the settlement would be preempted by the agreement, whether the $20.5 million cap affects any potential collective bargaining rights that student-athletes may attempt to assert in future efforts to unionize, and whether student athletes may assert legal challenges to the compensation model in future efforts to be recognized as employees under the Fair Labor Standards Act.


[1] https://www.collegesportscommission.org/enforcement

[2] https://sports.yahoo.com/college-football/article/with-ncaa-house-settlement-hanging-in-balance-a-new-roster-limit-proposal-has-emerged-151555698.html

[3] https://frontofficesports.com/group-of-women-athletes-files-appeal-of-house-v-ncaa-settlement-approval/

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President Trump signs NIL executive order

As expected, President Donald Trump has signed an executive order regarding NIL payments. The fact sheet detailing the order’s main points says it all. “President Trump recognizes the critical role of college sports in fostering leadership, education, and community pride, the need to address urgent threats to its future, including endless litigation seeking to eliminate […]

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As expected, President Donald Trump has signed an executive order regarding NIL payments.

The fact sheet detailing the order’s main points says it all.

“President Trump recognizes the critical role of college sports in fostering leadership, education, and community pride, the need to address urgent threats to its future, including endless litigation seeking to eliminate the basic rules of college sports, escalating private-donor pay-for-play payments in football and basketball that divert resources from other sports and reduce competitive balance, and the commonsense reality that college sports are different than professional sports,” the fact sheet reads, via Amanda Christovich of FrontOfficeSports.com.

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The “endless litigation” mentioned in the fact sheet was the result of a corrupt system that violated the antitrust laws and exploited players. The “endless litigation” was about making things right. About making them legal.

The executive order, as expected, is about turning the clock back to the days before the courts gave players power, along with the ability to make money. And the fact sheet reads as if Nick Saban himself wrote it from Trump.

(As if Saban wrote it for Trump. Saban.)

It’s unclear whether the executive order has any potency. It’s not a law. Like the SCORE Act, which is working its way toward a party-line vote in the House — and which likely will become law and, under the guise of solving an overblown CRISIS! that the NCAA and its members should be expected to solve on its own — pick the pockets of players by artificially limiting what they may earn.

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Through it all, the players have no voice. That’s how the prior system lasted for decades, until the courts blew it up. Now, the other two branches of the federal government are doing their damnedest to override that progress.

Consider it another inalienable right. Life, liberty, and the pursuit of happiness through the watching of college sports where the kids who are playing the games have limits on what they can get paid.



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Kansas basketball coach Bill Self has 2 stents inserted to treat blocked arteries

Associated Press LAWRENCE, Kan. (AP) — Kansas basketball coach Bill Self had two stents inserted into his heart to treat blocked arteries Thursday at Lawrence Memorial Hospital after he felt “felt unwell and experienced some concerning symptoms.” “The procedure went very well, and he is expected to make a full recovery,” the Kansas athletic department […]

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Associated Press

LAWRENCE, Kan. (AP) — Kansas basketball coach Bill Self had two stents inserted into his heart to treat blocked arteries Thursday at Lawrence Memorial Hospital after he felt “felt unwell and experienced some concerning symptoms.”

“The procedure went very well, and he is expected to make a full recovery,” the Kansas athletic department said in a statement. “He is in good spirits and expects to be released from the hospital soon.”

The 62-year-old Self directed the final practice of the summer session Thursday morning as he prepares for his 23rd seasons as head coach of the Jayhawks. He missed the 2023 Big 12 and NCAA tournaments because of a heart condition, getting a standard catheterization and having two stents inserted to help treat blocked arteries.

___

Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here. AP college basketball: https://apnews.com/hub/ap-top-25-college-basketball-poll and https://apnews.com/hub/college-basketball





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Trump signs executive order governing NIL, revenue-sharing in college sports

President Donald Trump signed an executive order Thursday afternoon attempting to govern the name, image and likeness (NIL) landscape in college athletics. The order, which expressly bans “third party, pay-for-play payments to collegiate athletes,” also includes terms intended to “protect student-athletes and collegiate athletic scholarships and opportunities.”  It shares similar goals with the College Sports […]

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President Donald Trump signed an executive order Thursday afternoon attempting to govern the name, image and likeness (NIL) landscape in college athletics.

The order, which expressly bans “third party, pay-for-play payments to collegiate athletes,” also includes terms intended to “protect student-athletes and collegiate athletic scholarships and opportunities.” 

It shares similar goals with the College Sports Commission, which was created as part of the House v. NCAA settlement to ensure compliance with revenue-sharing caps.  

Among the clauses are directions to implement revenue-sharing “in a manner that protects women’s and non-revenue sports.” Schools like Duke, whose athletic departments generated more than $125,000,000 during the 2024-25 season, must increase scholarship opportunities in non-revenue sports in the upcoming season. They must also offer the maximum number of roster spots in those sports as permitted by current collegiate rules.

The order tasks the Secretary of Education, Attorney General, Secretary of Health and Human Services and the Chairman of the Federal Trade Commission with creating an enforcement plan in the next 30 days, based in part on the litigatory power of Title IX.

Trump has also directed the National Labor Review Board to clarify the status of student-athletes. If they are named amateurs instead of employees, it will limit their bargaining power and pave the way for clearer financial regulation. 

Per a White House fact sheet, the executive order aims to eliminate “pay-for-play bidding wars amongst university boosters” and quell “a chaotic environment that threatens the financial and structural viability of college athletics.” 

Money has played an increasingly public role in the college recruiting scene, especially since the idea of revenue sharing was introduced to the NCAA and power conferences in June. With the approval of the House v. NCAA settlement, schools are now able to pay players directly with up to 22% of their athletic department budgets. 

These changes have been hailed by some and denounced by others. NCAA President Charlie Baker put out a statement in support of Trump’s attempt at regulation.

“The NCAA is making positive changes for student-athletes and confronting many challenges facing college sports by mandating health and wellness benefits and guaranteeing scholarships, but there are some threats to college sports that federal legislation can effectively address,” Baker said. “We look forward to working with student-athletes, a bipartisan coalition in Congress and the Trump Administration to enhance college sports for years to come.”

Duke Athletic Director Nina King did not respond to request for comment in time for publication.

While Trump’s executive order remains bare-bones, more detailed legislation has also made its way into the House. The SCORE Act looks to grant antitrust protections to the NCAA and conferences, override state variations in NIL law and eliminate many administrative restrictions on NIL compensation. 

All of the Power 5 conferences previously issued a statement endorsing the SCORE Act. However, players associations for the NFL, NBA, MLB, NHL and MLS issued a joint statement urging Congress to reject the bill. 

“Whatever progress the athletes have made has been a result of their use of the antitrust laws,” they wrote in a letter earlier this month. “The SCORE Act would take that weapon away from them.”

The House Energy and Commerce committee and the Committee on Education and the Workforce recently approved the bill with no Democratic support. It will need 60 votes, including seven Democrats, to pass the Senate.


Abby DiSalvo profile
Abby DiSalvo

Abby DiSalvo is a Trinity junior and sports editor of The Chronicle’s 121st volume.





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Rev-Share Debate Before Kentucky Football Fall Camp

It’s been one week since we spoke with the Wildcats at SEC Media Days. In one more week, the Kentucky football team will be wearing helmets on a practice field. It’s almost Football Time in the Bluegrass. 11 Personnel is here to help you get across the finish line and into the Kentucky football season. […]

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It’s been one week since we spoke with the Wildcats at SEC Media Days. In one more week, the Kentucky football team will be wearing helmets on a practice field. It’s almost Football Time in the Bluegrass.

11 Personnel is here to help you get across the finish line and into the Kentucky football season. There are a few noteworthy events happening around the world of college football ahead of the start of fall camp…

— The Great Kentucky Rev-Share Debate
— National Writers put Mark Stoops on the Hot Seat
— Hardley Gilmore speaks for the first time
Boo Carter drama in Knoxville is comedy.
— Big Ten is at odds with the rest of college football.

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With 20 locations in 14 counties across Kentucky, we’re just around the corner, so hurry in and speak with one of our Mortgage Lenders about this limited time offer today!

Find us on the web at MBCBANK.COMMonticello Bank, Where People Matter. Member FDIC. Equal Housing Lender.

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Every Individual has the ability to grow from their problems. Whether it is substance use, mental health, work, finance, or emotional struggles. We help clients learn their potential and join them in their journey.

To learn more head to https://www.optimallivingservices.com/ or give them a call at 859-785-1030.

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More Kentucky News and Views on the KSR YouTube Channel

Kentucky Sports Radio has expanded its coverage of the Wildcats in the most ridiculous manner possible on our YouTube Channel. Here you will be able to find interviews with coaches and players, as well as commentary from the KSR crew. From Rapid Reactions following big events to our lengthy lineup of live shows, subscribe to the KSR YouTube Channel to stay up to date on everything happening around the Big Blue Nation.



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Trump signs executive order seeking to clarify college athletes’ employment status

President Donald Trump on Thursday signed an executive order mandating that federal authorities clarify whether college athletes can be considered employees of the schools they play for — attempting to create clearer national standards for the NCAA’s name image and likeness program. FILE – Penn State offensive lineman Nick Dawkins (53) in action during the […]

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President Donald Trump on Thursday signed an executive order mandating that federal authorities clarify whether college athletes can be considered employees of the schools they play for — attempting to create clearer national standards for the NCAA’s name image and likeness program.

FILE - Penn State offensive lineman Nick Dawkins (53) in action during the first half of an NCAA college football game against Minnesota, Nov. 23, 2024, in Minneapolis.

FILE – Penn State offensive lineman Nick Dawkins (53) in action during the first half of an NCAA college football game against Minnesota, Nov. 23, 2024, in Minneapolis.

Abbie Parr / AP

The move comes amid a dramatic increase in the money flowing into and around college athletics. It also follows key court victories won by current and former athletes angry that they were barred for decades, both from earning income based on their celebrity and from sharing in the billions of revenue they helped generate.

Facing a growing number of state laws undercutting its authority, the NCAA in July 2021 cleared the way for athletes to cash in with name, image and likeness deals with brands and sponsors.

That came mere days after a 9-0 decision from the Supreme Court that found the NCAA cannot impose caps on education-related benefits schools provide to their athletes because such limits violate antitrust law.

Trump’s action directs the secretary of labor and the National Labor Relations Board to clarify the status of collegiate athletes through guidance or rules “that will maximize the educational benefits and opportunities provided by higher education institutions through athletics.”

The NCAA’s embrace of NIL deals set the stage for another massive change that took effect July 1: The ability of schools to begin paying millions of dollars to their own athletes, up to $20.5 million per school over the next year. The $2.8 billion House settlement shifts even more power to college athletes, who have also won the ability to transfer from school to school without waiting to play.

The NCAA has been lobbying for several years for limited antitrust protection to keep some kind of control over this new landscape — and avoid more crippling lawsuits — but a handful of bills have gone nowhere in Congress.

The 1,100 universities that comprise the NCAA have insisted for decades that athletes are students who cannot be considered anything like a school employee.

This stance has long been a part of the amateur model at the heart of college athletics, but that model is rapidly being replaced by a more professional structure fed by money that is coming from donors, brands and now the schools themselves.

Some coaches have even suggested collective bargaining is a potential solution to the chaos they see.

It is a complicated topic: Universities would become responsible for paying wages, benefits, and workers’ compensation and schools and conferences have insisted they will fight any such move in court (some already have).

While private institutions fall under the National Labor Relations Board, public universities must follow labor laws that vary from state to state and it’s worth noting that virtually every state in the South has “right to work” laws that present challenges for unions.

___

AP college sports: https://apnews.com/hub/college-sports



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Trump signs order to clarify college athletes’ employment status amid NIL chaos | National News

WASHINGTON (AP) — President Donald Trump on Thursday signed an executive order mandating that federal authorities clarify whether college athletes can be considered employees of the schools they play for in an attempt to create clearer national standards in the NCAA’s name, image and likeness era. Trump directed the secretary of labor and the National […]

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WASHINGTON (AP) — President Donald Trump on Thursday signed an executive order mandating that federal authorities clarify whether college athletes can be considered employees of the schools they play for in an attempt to create clearer national standards in the NCAA’s name, image and likeness era.

Trump directed the secretary of labor and the National Labor Relations Board to clarify the status of collegiate athletes through guidance or rules “that will maximize the educational benefits and opportunities provided by higher education institutions through athletics.” The order does not provide or suggest specifics on the controversial topic of college athlete employment.


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