Former College Athletes Can Now Submit Claims for Payouts in $2.8 Billion NCAA Settlement

Thousands of former college athletes are now eligible to submit claims for a share of a historic $2.8 billion settlement with the NCAA. This landmark agreement addresses allegations that athletes were wrongfully denied compensation for the use of their name, image, and likeness (NIL). The settlement marks a significant shift in the landscape of college sports, potentially paving the way for direct payments to athletes in the future.

Key Takeaways

• Settlement Amount: $2.8 billion aimed at compensating athletes for past revenue.
• Eligibility: Athletes who played from 2016 onward can submit claims.
• Payout Estimates: Average payouts of $135,000 for men’s football and basketball players, $35,000 for women’s basketball players.
• Claims Process: Claims can be submitted now, with payments expected to begin in December.

Background Of The Settlement

The proposed settlement arises from a series of lawsuits against the NCAA and major athletic conferences, alleging that many current and former athletes were denied fair compensation for their contributions to college sports. Historically, college athletes were limited to scholarships and minimal expense reimbursements, but changes in 2021 allowed them to profit from their NIL.

Who Is Eligible?

The settlement covers three main groups of athletes:

1. Power Five Men's Football and Basketball Players
2. Power Five Women's Basketball Players
3. All Other Division I Athletes

Over 400,000 athletes are potentially eligible to make claims, with payouts varying based on the sport and the athlete's performance.

Expected Payouts

• Men’s Football and Basketball Players: Average payout of approximately $135,000.
• Women’s Basketball Players: Average payout of around $35,000.
• Other Division I Athletes: Smaller payouts ranging from hundreds to thousands of dollars.

The largest individual payout could reach as high as $1.85 million, particularly for athletes who have transitioned to professional sports.

Claims Process Timeline

• Claims Submission: Athletes can begin submitting claims now.
• Notification: Eligible athletes will receive notifications starting Friday.
• Payouts: Expected to begin in December, with payments distributed annually over a period of up to 10 years.

Future Implications

This settlement not only compensates athletes for past grievances but also sets a precedent for future revenue sharing in college sports. Under the new model, colleges could allocate up to $22 million annually for athlete compensation, potentially leading to a total of $15 billion to $20 billion in earnings for college athletes over the next decade.

Legal Considerations

While the settlement has received preliminary approval, it still faces legal hurdles. A final approval hearing is scheduled for April 7, and there may be appeals related to Title IX, which mandates equal treatment for male and female athletes. Athletes will have the option to opt out of the settlement to pursue individual litigation.

Conclusion

The $2.8 billion NCAA settlement represents a monumental shift in the treatment of college athletes, providing them with a long-awaited opportunity for compensation. As the claims process unfolds, the implications for college sports and athlete rights will continue to evolve, potentially reshaping the future of collegiate athletics.

Sources

• College Athletes Can Submit Claims in $2.8 Billion NCAA Deal | Money, Money.