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U.S. Judge Greenlights $2.8 Billion Settlement, Allowing Colleges to Compensate Athletes Millions


A landmark ruling by federal judge Claudia Wilken has authorized a significant shift in college sports, allowing schools to begin compensating athletes with millions starting next month. This change stems from a lawsuit filed by Arizona State swimmer Grant House regarding revenue sharing and marks a departure from the amateur model that dominated for over a century. The settlement permits each school to collectively share up to $20.5 million with their athletes within a year and allocate $2.7 billion over a decade to former players who were historically denied such revenue.

This legal decision recognizes the substantial revenue generated primarily by football and basketball, prompting a professionalization of college athletics. It raises concerns over the fate of walk-on athletes, as schools may reduce rosters while pursuing high-profile recruits. The adjustments take substantial oversight from the NCAA, transferring it to the four major conferences: ACC, Big Ten, Big 12, and SEC, which have considerable influence, particularly over the lucrative College Football Playoff.

Initially stalled by roster limits impacting players, the settlement was modified to allow those affected to retain opportunities within their programs. The agreement has varying implications, favoring football and basketball stars at prominent universities while potentially marginalizing walk-ons and those in less prominent sports.

Despite the landmark changes provided by the settlement, challenges remain, as states possess differing laws regarding name, image, and likeness (NIL) that could result in future litigation. NCAA President Charlie Baker continues to advocate for federal legislation to unify college sports regulations and offer protections against possible disruptions in this newly established model.

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