NCAA and Power 5 Approve Settlement, Paving Way for Revenue Sharing with Players

May 28, 2024, 02:01 PM

The NCAA has approved settlement terms in ongoing antitrust lawsuits, potentially leading to a significant shift in college sports. The settlement, involving the NCAA and Power 5 conferences, could pave the way for schools to share revenue with players for the first time. This development follows the House v. NCAA case and is seen as a response to the increasing legal pressure and the need to address antitrust claims, which have persisted despite the NCAA's nearly $2.8 billion settlement aimed at preventing further lawsuits. The settlement also aims to eliminate collectives, but many are evolving into university-funded 'marketing agencies' to circumvent the cap and mitigate legal risks. Schools have an economic incentive to bring collectives in-house, as they can increase cap space by buying athletes’ NIL rights and using those rights to generate 3rd party NIL, which does not count toward the cap. The NCAA is reportedly seeking to have this settlement codified into law by Congress, which would cap athlete pay, a move that has sparked criticism and concerns about further litigation.