Athletics Industry Faces $4 Billion in Legal Settlement after House v. NCAA Case
The NCAA is facing a potential legal settlement of over $4 billion in damages after losing the House v. NCAA case, which aims to compensate athletes for their contributions to the multi-billion-dollar college sports industry. This has prompted many industry leaders to pursue a settlement to avoid such a hefty payout.
Last week, power conference commissioners, general counsels, NCAA President Charlie Baker, NCAA lawyers, and plaintiffs’ attorneys met in Dallas to discuss the legal framework for sharing revenue with athletes. While no deal is imminent, details of a multibillion-dollar settlement may soon be shared with campuses.
The settlement is expected to involve billions in back pay for former athletes and may require the NCAA and conferences to agree on a system for sharing more revenue with players going forward. The top-end revenue share per school is anticipated to be around $20 million annually, although this figure has yet to be finalized.
The idea of revenue sharing stemmed from the SEC-Big Ten joint advisory group announced in February, which consists of university presidents/chancellors and athletic directors. This framework aims to address the issue of compensating college athletes for their contributions to the multi-billion-dollar college sports industry.
