### Federal Judge Grants Preliminary Approval for Landmark NCAA Settlement

A significant milestone has been reached in the ongoing battle over athlete compensation in college sports. On Monday, a federal judge granted preliminary approval to a revised version of a multi-billion-dollar settlement involving three athlete-compensation antitrust cases against the NCAA and the Power Five conferences. This pivotal decision brings the NCAA and its conferences one step closer to establishing a $2.8 billion damages pool that will benefit current and former athletes over the next decade.

This settlement marks a transformative moment for college sports, as it allows Division I schools to begin compensating athletes directly for the use of their name, image, and likeness (NIL). This initiative, subject to a per-school cap that will increase over time, heralds a fundamental shift in the landscape of college athletics. However, the settlement process is far from complete. The next step involves officially notifying eligible athletes of the terms and claim procedures starting October 18, 2023. These athletes will have the opportunity to object or opt out by January 31, 2025, with a final approval hearing scheduled for April 7, 2025.

Despite the progress, the path to final approval remains uncertain, given the potential for additional legal appeals. Previous cases have seen delays due to persistent legal challenges, such as a former college football player who extended a similar case by nearly two years through the 9th U.S. Circuit Court of Appeals.

The journey to this preliminary approval has been fraught with legal hurdles. U.S. District Judge Claudia Wilken initially declined the first version of the proposed settlement during a hearing on September 5, 2023, citing concerns different from those raised by the athletes' lawyers. Following this, an adjusted version was submitted on September 26, 2023, addressing Wilken’s concerns about the regulatory structure oversight.

Despite yet another objection from a different group of athletes represented by attorney Michael Hausfeld, Judge Wilken granted preliminary approval. Her order included routine language signaling that she would "likely be able to approve the Settlement as fair, reasonable and adequate" pending further consideration at the final approval hearing.

Key figures have voiced their support for the preliminary approval. Steve Berman, one of the lead attorneys for the plaintiffs, described the decision as "a huge step forward for NCAA athletes." NCAA President Charlie Baker echoed this sentiment, applauding the progress and expressing optimism about the new chapter for the future of college sports.

According to the settlement, athlete compensation could begin as early as the 2025-26 academic year, assuming final approval and resolution of any appeals. Berman also indicated that current and former athletes might start receiving checks from the damages pool by fall 2025.

The settlement stipulates a broader restructuring of college sports. NCAA leaders aim to replace current sport-specific scholarship limits with new roster-size limits, starting with football, which would have a roster limit of 105 athletes in the first academic year following final approval. Additionally, the NCAA would enforce stricter regulations on NIL deals, requiring athletes to report payments over $600 to a new clearinghouse and allowing the association to review and potentially sanction deals exceeding market value.

This settlement not only promises financial compensation but also holds the potential to reshape the regulatory framework of college sports, with long-term implications for how athletes engage in NIL agreements and how institutions manage these relationships.