### Landmark Ruling Allows Schools to Pay College Athletes, Potentially Transforming College Sports

In a monumental decision, a U.S. District Judge granted preliminary approval to a $2.78 billion legal settlement that stands to revolutionize college sports by enabling schools to pay their athletes. Judge Claudia Wilken's ruling paves the way for college athletes to start applying for payments on October 18, with a final hearing scheduled for April 7, 2025, coinciding with the end of one of college sports' biggest events, March Madness.

If finalized, the settlement would permit major universities to create a pool of approximately $21.5 million in the first year, aimed at distributing funds to athletes through a revenue-sharing plan. This move represents a significant departure from the traditional model where athletes played primarily for scholarships and limited expenses, despite generating millions for their institutions.

Athletes would still have opportunities to earn money from name, image, and likeness (NIL) deals. Furthermore, former college athletes dating back to 2016 could apply for their portion of $2.576 billion, a sum set aside to compensate for missed NIL earnings prior to their legalization in 2021.

"This is a revolutionary change that will enable billions in revenue sharing," said Steve Berman, an attorney for the plaintiffs.

The preliminary approval came after attorneys modified the settlement agreement to address Judge Wilken's concerns, including replacing the term "boosters" with a more precise definition of the parties whose NIL deals would be scrutinized by a neutral arbitrator.

Not all institutions will contribute equally to the $21.5 million fund, and schools are scrambling to find ways to compensate for the payments without jeopardizing other sports programs. This concern is particularly pronounced among "non-revenue" sports, which are instrumental in filling U.S. Olympic rosters.

NCAA President Charlie Baker hailed the judge's decision as a significant step toward the future of college athletics. "Today's progress is a significant step in writing the next chapter for the future of college sports," he said.

In addition to payment arrangements, the settlement introduces a framework for managing future NIL deals and replaces scholarship caps with "roster limits." The roster limit for football, the most financially significant and costly sport at most large universities, will increase to 105 players.

The impact of these new terms on Title IX is yet to be fully understood. Lawyers representing the plaintiffs estimate that around 90% of the settlement funds will benefit football and men's basketball players, raising concerns about potential Title IX violations.

This settlement resolves three major antitrust lawsuits against the NCAA, including one led by former Arizona State swimmer Grant House. Over 10 years, the total value of the new payments and benefits to college athletes is projected to exceed $20 billion.

Although the $21.5 million annual payouts from top schools represent less than 10% of an NFL salary cap, the agreement is seen as significant progress for college sports. The sector is currently undergoing major changes, including an expanded football playoff with a $7.8 billion TV contract and the formation of mega-conferences like the Southeastern and Big Ten Conferences, which now have 34 teams combined.

"For far too long, these athletes have been deprived of their economic rights in an unjust system that will now, finally, be fundamentally reformed," said Jeffrey Kessler, another attorney for the plaintiffs.

Questions remain about the longevity of the deal's terms. Ongoing litigation concerning players' rights to unionize and potentially be recognized as employees is still unresolved, and the NCAA is seeking federal legislation to standardize NIL policies, which are currently governed by a mix of state laws, legal settlements, and NCAA rules.