In a historic move, the NCAA and the "power five" athletic conferences have reached an agreement that could bring an end to the long-standing tradition of amateurism in college sports. The agreement, part of a class-action lawsuit called House v. NCAA, aims to allow athletes to receive direct payments from the colleges and universities they play for. However, the proposed settlement raises several important questions that remain unresolved.

One key aspect of the agreement is the distribution of approximately $2.75 billion to athletes who competed before July 2021, when the NCAA first permitted athletes to earn money from their name, image, and likeness rights. Additionally, a future revenue-sharing model is proposed, wherein schools could distribute around $20 million per year directly to athletes.

The settlement primarily focuses on schools within the Power 5 conferences, including the Atlantic Coast Conference, the Big Ten, the Big 12, the Pac-12, and the Southeastern Conference. Each school will have the ability to allocate up to approximately $20 million to its athletes, with the amount being based on a percentage of the average annual revenue earned by the power conference programs. Other schools outside the Power 5 conferences may also have the option to participate.

It is expected that football players and men's basketball players at large programs will be the most likely to receive payments, as these sports traditionally generate the majority of revenue for college athletics departments through TV contracts. Women's basketball, which also brings in revenue, could also see players receiving payments. However, it will be up to each school to determine how to distribute the funds, and the process may vary significantly among institutions.

While schools will have the option to pay athletes in non-revenue-generating sports such as rowing, soccer, tennis, and track and field, the approach for doing so remains unclear. Additionally, many smaller colleges and universities may choose not to pay any athletes at all, potentially creating a competitive gap between schools with more financial resources and those without.

Furthermore, the proposed settlement raises important questions regarding Title IX, the civil rights law that prohibits sex-based discrimination in educational institutions. Schools will need to determine how Title IX applies to revenue payments to athletes, and litigation may be necessary to resolve this matter.

Despite this landmark settlement, experts believe that it does not completely put an end to the NCAA's legal challenges. The cap on payouts, set at 22 percent of the average revenue earned annually by Power 5 schools, raises concerns. This figure is significantly lower than the portion of revenue paid out in professional leagues like the NFL and NBA, where players receive around half of the revenue. Without collective bargaining agreements, which provide legal protection from individual lawsuits, the NCAA could still face antitrust litigation due to the absence of such agreements in college sports.

In light of this, the NCAA and schools are actively lobbying Congress to pass a federal antitrust exemption for college sports, which would safeguard them from future lawsuits related to player compensation. However, the road ahead remains uncertain as the proposed settlement marks only the beginning of a new era for college athletics.

As the case progresses and details are worked out, the future of college sports and the fate of student-athlete compensation hang in the balance. The proposed settlement has the potential to revolutionize the landscape of college athletics, but many significant questions still need to be resolved in order to ensure fairness and equality among athletes across the nation.