The NCAA has recently announced an agreement to pay nearly $2.8 billion to settle numerous antitrust claims. This plan includes compensating thousands of former and current college athletes who allege that now-defunct NCAA rules prevented them from earning endorsement money. Additionally, the plan establishes a first-of-its-kind revenue-sharing system for college athletes, allowing schools to allocate up to $21 million per year to be paid directly to athletes, starting as early as fall 2025.
Under the settlement, $2.77 billion in damages will be paid over 10 years for approximately 14,000 claims dating back to 2016. The deal still requires approval from the federal judge overseeing the case, and plaintiffs will have the opportunity to opt out or challenge the terms of the agreement. If approved, this settlement will mark the beginning of a new era in college sports, where athletes are compensated more like professionals and where schools can compete for talent using direct payments.
MNK Law will continue to monitor developments with respect to the new NCAA settlement agreement and its effects on schools and student-athletes. For more information, please contact us at info@mnklawyers.com.
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