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Federal judge approves .8B settlement allowing schools to directly pay college athletes
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Federal judge approves $2.8B settlement allowing schools to directly pay college athletes

Jimmie Dempsey
Last updated: June 7, 2025 6:51 am
Jimmie Dempsey Published June 7, 2025
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A federal judge granted final approval on Friday to the $2.8 billion settlement that will allow colleges and universities to begin paying athletes directly.

Judge Claudia Wilken approved the settlement on Friday that will allow schools to pay their athletes next month.

The sweeping terms of the so-called House settlement include approval for each school to share up to $20.5 million with athletes over the next year and $2.7 billion that will be paid over the next decade to thousands of former players who were barred from that revenue for years.

Payouts will be determined based on the sport and the length of athletic career, with most football and men’s basketball players able to receive nearly $135,000 each.

However, the highest estimated payout is expected to be nearly $2 million, thanks to “Lost NIL Opportunities,” according to the law firm.

Nearly five years after Arizona State swimmer Grant House sued the NCAA and its five biggest conferences to lift restrictions on revenue sharing, Wilken approved the final proposal that had been hung up on roster limits, just one of many changes ahead amid concerns that thousands of walk-on athletes will lose their chance to play college sports.

The deal covers three antitrust cases — including the class-action lawsuit known as House vs. the NCAA — that challenged NCAA compensation rules dating back to 2016. The plaintiffs claimed that NCAA rules denied thousands of athletes the opportunity to earn millions of dollars off the use of their names, images and likenesses.

An NCAA game ball

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The NCAA lifted its ban on athletes earning money through endorsement and sponsorship deals in 2021.

At one point, President Donald Trump was considering an executive order to regulate name, image and likeness in college sports after meeting with legendary Alabama Crimson Tide coach Nick Saban, the Wall Street Journal reported.

On Fox News last year, Saban urged Congress to step in and make NIL “equal across the board.”

“And I think that should still exist for all players, but not just a pay-for-play system like we have now where whoever raises the most money in their collective can pay the most for the players, which is not a level playing field. I think in any competitive venue, you want to have some guidelines that gives everyone an equal opportunity to have a chance to be successful,” he said.

Trump and Saban

The settlement also called for a clearinghouse to make sure any NIL deal worth more than $600 is pegged at fair market value in an attempt to thwart supposed pay-for-play deals.

Fox News’ Ryan Gaydos and The Associated Press contributed to this report.

Follow Fox News Digital’s sports coverage on X, and subscribe to the Fox News Sports Huddle newsletter.



Read the full article here

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