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Judge Approves Landmark NCAA Settlement, Paving Way for Revenue Sharing

Judge Approves Landmark NCAA Settlement, Paving Way for Revenue Sharing originally appeared on Athlon Sports. A federal judge on Friday approved a historic settlement that will allow colleges to begin directly paying student-athletes, signaling the most significant shift in the history of college sports and effectively dismantling the amateurism model that defined the NCAA for […]

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Judge Approves Landmark NCAA Settlement, Paving Way for Revenue Sharing originally appeared on Athlon Sports.

A federal judge on Friday approved a historic settlement that will allow colleges to begin directly paying student-athletes, signaling the most significant shift in the history of college sports and effectively dismantling the amateurism model that defined the NCAA for more than a century.

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U.S. District Judge Claudia Wilken, who has long presided over high-profile NCAA cases, gave final approval to the House v. NCAA settlement, nearly five years after Arizona State swimmer Grant House and others filed suit seeking to end restrictions on athlete compensation. Under the agreement, schools can distribute up to $20.5 million annually to athletes, beginning as soon as July 1. Additionally, $2.7 billion will be paid out over 10 years to thousands of former athletes.

The ruling completes the transition that began with Wilken’s earlier decisions, including her 2014 ruling in favor of Ed O’Bannon, and the NCAA’s 2021 decision to allow athletes to profit from their name, image and likeness. The new revenue-sharing model pushes even further, professionalizing college athletics and placing much of the power in the hands of the four major conferences.

While athletes in high-revenue sports like football and men’s basketball stand to benefit significantly with some reportedly landing NIL deals worth more than $10 million, the settlement could reduce opportunities for walk-ons and Olympic sport athletes. In response, Wilken mandated a process to allow athletes cut during early implementation to be reinstated.

Related: Kentucky Basketball Beats Cap Proposal With NIL Power Play

Key dates include the June 11 launch of the NIL Go portal, a June 15 opt-in deadline for non-defendant schools, and the start of revenue sharing on July 1. Schools must also comply with new roster limits by their sport’s season start or by Dec. 1 for winter and spring sports.

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Related: Michigan Running Back’s Groundbreaking NIL Deal Redefines College Football

Despite the sweeping changes, legal uncertainty remains. Varying state laws and the absence of a federal NIL framework leave room for future litigation. NCAA President Charlie Baker continues to push for national legislation and antitrust protection to stabilize the rapidly evolving landscape.

Still, attorneys behind the settlement argue it delivers what athletes have long deserved, which is a share of the billions their efforts generate from TV deals, merchandise, and championships. As the 2025–26 academic year begins, the college sports model will look unlike anything seen before.

This story was originally reported by Athlon Sports on Jun 7, 2025, where it first appeared.



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Argument over ‘valid buisiness purpose’ for NIL collectives threatens college sports settlement

“This process is undermined when the CSC goes off the reservation and issues directions to the schools that are not consistent with the Settlement Agreement terms,” attorney Jeffrey Kessler wrote to NCAA outside counsel Rakesh Kilaru in a letter obtained by The Associated Press. Yahoo Sports first reported details of the letter, in which Kessler […]

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“This process is undermined when the CSC goes off the reservation and issues directions to the schools that are not consistent with the Settlement Agreement terms,” attorney Jeffrey Kessler wrote to NCAA outside counsel Rakesh Kilaru in a letter obtained by The Associated Press.

Yahoo Sports first reported details of the letter, in which Kessler threatens to take the issue to a judge assigned with resolving disputes involved in the settlement.

Kessler told AP his firm was not commenting on the contents of the letter, and Kilaru did not immediately respond to AP’s request for a comment.

Yahoo quoted a CSC spokesman as saying the parties are working to resolve differences and that “the guidance issued by the College Sports Commission … is entirely consistent with the House settlement and the rules that have been agreed upon with class counsel.”

When NIL payments became allowed in 2021, boosters formed so-called “collectives” that were closely tied to universities to work out contracts with the players, who still weren’t allowed to be paid directly by the schools.

Terms of the House settlement allow schools to make the payments now, but keep the idea of outside payments from collectives, which have to be approved by the CSC if they are worth $600 or more.

The CSC, in its letter last week, explained that if a collective reaches a deal, for instance, for an athlete to appear on behalf of the collective, which charges an admission fee, that collective does not have a “valid business purpose” because the purpose of the event is to raise money to pay athletes, not to provide goods or services available to the general public for profit.

Another example of a disallowed deal was one an athlete makes to sell merchandise to raise money to pay that player because, the CSC guidance said, the purpose of “selling merchandise is to raise money to pay that student-athlete and potentially other student-athletes at a particular school or schools, which is not a valid business purpose.”

Kessler’s letter notes that the “valid business purpose” rule was designed to ensure athletes were not simply being paid to play, and did not prohibit NIL collectives from paying athletes for the type of deals described above.

To prevent those payments “would be to create a new prohibition on payments by a NIL collective that is not provided for or contemplated by the Settlement Agreement, causing injury to the class members who should be free to receive those payments,” Kessler wrote.

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

FILE - Tennessee pitcher Liam Doyle (12) throws to a batter during an NCAA regional baseball game against Miami on May 30, 2025, in Knoxville, Tenn. (AP Photo/Wade Payne, File)

Credit: AP

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Haugh & Knapp Taken On Day 2 Of 2025 MLB Draft

ATLANTA, Ga. – Diamond Heels starting pitchers Aidan Haugh and Jake Knapp were both selected on the second day of the 2025 Major League Baseball Draft.   Haugh, a sixth round pick by the Tampa Bay Rays, and Knapp, an eight round pick by the Chicago Cubs, round out the draft for North Carolina with […]

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ATLANTA, Ga. – Diamond Heels starting pitchers Aidan Haugh and Jake Knapp were both selected on the second day of the 2025 Major League Baseball Draft.
 
Haugh, a sixth round pick by the Tampa Bay Rays, and Knapp, an eight round pick by the Chicago Cubs, round out the draft for North Carolina with four total selections. UNC has now had 21 players drafted under head coach Scott Forbes, including 10 pitchers. It is the most Tar Heels taken in the first eight rounds of a draft since 2015.
 
Haugh had been in this spot before. He was chosen by the Minnesota Twins in the 16th round of the 2024 draft, but chose to come back to Carolina and bet on himself to improve his stock. He can now say mission accomplished, as he jumped 10 rounds up to the sixth with the Rays this year.
 
One the regular starters for a Carolina arm barn that had the third best ERA in the country, Haugh made 17 appearances with 14 starts for the Tar Heels in 2025. He logged a 5-4 record with a 3.72 ERA in 75.0 innings. His was the 9th best ERA in the ACC.
 
The Cubs drafted the National Pitcher of the Year Knapp in the eighth round, pairing him with fellow Tar Heel Kane Kepley whom they selected in the second round. Knapp, who is a consensus first team All-American and 2025 ACC Pitcher of the Year, finished the season with a 2.02 ERA in 102.1 innings with 88 strikeouts on just 16 walks.
 
The Greensboro, N.C., native racked up the best record of any pitcher in the country at 14-0. It is the most wins in a single-season without defeat and tied for the most victories overall in program history.
 
MLB teams have until July 28 to sign their new draftees.



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New agency to enforce legitimacy of NIL deals in college sports

For several years now, the world of NIL in college sports has essentially been the Wild West. Under the current system, every player is essentially a free agent after each season, and there is no salary cap for how much money schools can spend on players. However, that is reportedly about to change. With the […]

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For several years now, the world of NIL in college sports has essentially been the Wild West. Under the current system, every player is essentially a free agent after each season, and there is no salary cap for how much money schools can spend on players.

However, that is reportedly about to change. With the dawn of the revenue sharing era, a new agency is reportedly going to enforce whether or not deals done outside of the revenue sharing system are legitimate endorsement contracts.

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A report last week from Stewart Mandel of The Athletic detailed plans for the new enforcement agency.

“The recently approved House settlement, which took effect on July 1, established a clearinghouse, called NIL Go, that must approve all third-party deals for more than $600,” Mandel wrote. “The two main requirements for those deals are that they’re for a ‘valid business purpose’ and within a fair-market ‘range of compensation.’

“The goal is to prevent schools from utilizing booster-driven entities to funnel payments to recruits and transfers as a workaround to the $20.5 million revenue-sharing cap.

“Guidance issued Thursday by the College Sports Commission said that ‘an entity with a business purpose of providing payments or benefits to student-athletes or institutions, rather than providing goods or services to the general public for profit, does not satisfy the valid business purpose requirement set forth in NCAA Rule 22.1.3.’

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“It then cited as an example a collective that ‘reach(es) a deal with a student-athlete to make an appearance on behalf of the collective at an event, even if that event is open to the general public, and the collective charges an admission fee (e.g., a golf tournament).’ And, ‘The same collective’s deal with a student-athlete to promote the collective’s sale of merchandise to the public would not satisfy the valid business purpose requirement for the same reason.’”

If the new system works as intended, programs will not be able to simply pay as much as they want for players. The goal is to put all schools on more of an equal playing field, rather than giving a massive advantage to the ones with the biggest collectives. It will be interesting to see if this effort is successful, or if schools continue to find new ways to get around the rules.

This article originally appeared on Trojans Wire: New college sports agency to enforce legitimacy of NIL deals



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Argument over ‘valid buisiness purpose’ for NIL collectives threatens college sports settlement

Less than two weeks after terms of a multibillion-dollar college sports settlement went into effect, friction erupted over the definition of a “valid business purpose” that collectives making name, image likeness payments to players are supposed to have. The new College Sports Commission sent a letter to athletic directors last week saying it was rejecting […]

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Less than two weeks after terms of a multibillion-dollar college sports settlement went into effect, friction erupted over the definition of a “valid business purpose” that collectives making name, image likeness payments to players are supposed to have.

The new College Sports Commission sent a letter to athletic directors last week saying it was rejecting deals in which players were receiving money from collectives that were created solely to pay them and don’t provide goods or services to the general public for profit.

A lead attorney for the players responded by saying those instructions went against settlement terms and asking the CSC to rescind the guidance.

“This process is undermined when the CSC goes off the reservation and issues directions to the schools that are not consistent with the Settlement Agreement terms,” attorney Jeffrey Kessler wrote to NCAA outside counsel Rakesh Kilaru in a letter obtained by The Associated Press.

Yahoo Sports first reported details of the letter, in which Kessler threatens to take the issue to a judge assigned with resolving disputes involved in the settlement.

Kessler told AP his firm was not commenting on the contents of the letter, and Kilaru did not immediately respond to AP’s request for a comment.

Yahoo quoted a CSC spokesman as saying the parties are working to resolve differences and that “the guidance issued by the College Sports Commission … is entirely consistent with the House settlement and the rules that have been agreed upon with class counsel.”

When NIL payments became allowed in 2021, boosters formed so-called “collectives” that were closely tied to universities to work out contracts with the players, who still weren’t allowed to be paid directly by the schools.

Terms of the House settlement allow schools to make the payments now, but keep the idea of outside payments from collectives, which have to be approved by the CSC if they are worth $600 or more.

The CSC, in its letter last week, explained that if a collective reaches a deal, for instance, for an athlete to appear on behalf of the collective, which charges an admission fee, that collective does not have a “valid business purpose” because the purpose of the event is to raise money to pay athletes, not to provide goods or services available to the general public for profit.

Another example of a disallowed deal was one an athlete makes to sell merchandise to raise money to pay that player because, the CSC guidance said, the purpose of “selling merchandise is to raise money to pay that student-athlete and potentially other student-athletes at a particular school or schools, which is not a valid business purpose.”

Kessler’s letter notes that the “valid business purpose” rule was designed to ensure athletes were not simply being paid to play, and did not prohibit NIL collectives from paying athletes for the type of deals described above.

To prevent those payments “would be to create a new prohibition on payments by a NIL collective that is not provided for or contemplated by the Settlement Agreement, causing injury to the class members who should be free to receive those payments,” Kessler wrote.

___

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

Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.



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Why Vanderbilt football coach Clark Lea said he’ll handle revenue sharing better than NIL

ATLANTA – Just a few years after NIL and instant eligibility for transfers upended the college football world, programs must adjust again. The recent House settlement implemented revenue sharing, where schools pay players directly rather than them signing contracts with a collective. There’s a cap on how much revenue sharing money schools can give out, […]

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ATLANTA – Just a few years after NIL and instant eligibility for transfers upended the college football world, programs must adjust again.

The recent House settlement implemented revenue sharing, where schools pay players directly rather than them signing contracts with a collective. There’s a cap on how much revenue sharing money schools can give out, split across all sports. NIL deals can still exist, but they must go through a clearinghouse run by Deloitte called NIL Go.

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On top of that, football teams can give out scholarships to anyone on their roster, but rosters will be capped at 105. Some players, called Designated Student Athletes, can be grandfathered in during the first few years of the roster limits if they were previously on the team.

Vanderbilt football coach Clark Lea was slow to adapt to the original NIL and transfer rules, but he believes he’s better prepared this time around. If anything, he said, the new rules make roster-building more straightforward.

“I don’t want to say it’s a seamless transition, because it’s a transition,” Lea said in a session with local media at SEC media days on July 14. “We’re going from contracts written through a collective to now having those as part of the revenue share salary cap. And so we have to transition to those contracts in a way that keeps up moving without skipping a beat.

” … There is no room for a team in our league that’s not fully participating. From there, it becomes, how do we engage the Nashville community to go beyond the revenue share? And I’m excited to explore all those things to better position us for where the game is headed.”

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To engage the Nashville community, Lea said he saw opportunities for partnerships with local businesses that could sign Vanderbilt players to NIL deals above the revenue-sharing cap. Lea said he was not directly involved with those conversations, as he was better off focusing on football, but that other parts of the department were focused on taking advantage of those opportunities.

The Commodores have a higher profile going into 2025 than they’ve had in a while with returning quarterback Diego Pavia and tight end Eli Stowers, plus several other good players. Martel Hight could play offense, defense and special teams.

Storylines Five storylines for Vanderbilt football at SEC media days include Diego Pavia, revenue sharing

But there are still questions abounding. NIL Go has rejected several NIL deals, leaving teams uncertain about the level of enforcement that will take place.

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Lea and Vanderbilt, like everyone else, will have to figure out those things as they go.

Aria Gerson covers Vanderbilt athletics for The Tennessean. Contact her at agerson@gannett.com or on X @aria_gerson.

This article originally appeared on Nashville Tennessean: Clark Lea: Vanderbilt football coach on revenue sharing vs NIL





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OU twins drafted to MLB aim to do something baseball hasn’t seen in decades

As usual, Kyson Witherspoon was first, but eventually, like always, his twin brother Malachi followed. Kyson, who was born just minutes before Malachi, was taken 15th overall by the Boston Red Sox during the 2025 MLB Draft on Sunday. Then, in the second round, Malachi went to the Detroit Tigers with the No. 62 pick. […]

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As usual, Kyson Witherspoon was first, but eventually, like always, his twin brother Malachi followed.

Kyson, who was born just minutes before Malachi, was taken 15th overall by the Boston Red Sox during the 2025 MLB Draft on Sunday. Then, in the second round, Malachi went to the Detroit Tigers with the No. 62 pick.

The twins made up two-thirds of the Oklahoma Sooners’ weekend starting rotation this past college baseball season and now have a chance to accomplish something that hasn’t been done since another pair of Sooners. Kyson and Malachi could become the first set of twins to make the MLB after being drafted the same year since 1996, according to MLB.com. The last duo to do it was Ryan and Damon Minor, also from OU.

Malachi and Kyson Witherspoon taken same day in MLB Draft

Kyson and Malachi have taken the same route to this point. They both went to Northwest Florida State College out of Fletcher High School in Neptune Beach, Florida. Both were MLB Draft prospects even in high school, but at that point, Malachi was actually ranked above Kyson.

In 2024, the duo transferred to OU, where Kyson eventually took over as the Sooners’ right-handed ace and emerged as one of the best pitchers in college baseball.

At the end of this past season, Kyson was named a First-Team All-American by Baseball America, D1Baseball, NCBWA and Perfect Game, and was a Second-Team All-American by ABCA. He was also a semifinalist for the Golden Spikes Award, which goes to the best player in college baseball.

Kyson was second in the SEC and No. 22 in the country with a 2.65 ERA in OU’s first season in a new conference. His 124 strikeouts ranked sixth in the country and fifth in the SEC. He tallied a team-high 10 wins with a 10-4 record, which was third-most in the SEC and 11th in the nation. He topped the SEC with a 5.39 strikeout-to-walk ratio.

Malachi, meanwhile, had a 5.09 ERA and 4-8 record as a weekend starter. He was projected to go between the third and fifth rounds before the Tigers jumped on him early in the second.

With Kyson and Malachi getting drafted, OU coach Skip Johnson has now had 29 pitchers taken in the MLB Draft since taking over the Sooners in 2018. Kyson was the fourth first-round pick under Johnson in eight seasons.

Read more about OU baseball



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