The NCAA and power conferences agreed to settlement terms in the House v. NCAAlawsuit Thursday night, allowing institutions to pay athletes directly.
It’s an unprecedented move in the history of college sports. The multibillion-dollar settlement calls for the NCAA to pay more than $2.7 billion in damages over 10 years to former and current athletes. Schools will have the opportunity to opt-in to a revenue-sharing agreement, with the option to share roughly $20 million per year with players.
The question now shifts to when this framework is put in place. Power conference schools will need to opt in or opt out of the revenue-sharing portion. It remains unclear how Title IXwould factor into payouts and how distribution would be split.
Components of the settlement, such as enforcement, need Congressional assistance for them to be implemented and impactful. Specifically, an antitrust exemption.
NCAA President Charlie Baker called the settlement “a road map for college sports leaders and Congress” on Thursday night. Yet, the NCAA has still not found success in the halls of Capitol Hill. Of the more than a dozen bills proposed focused on college sports in the last three years, none have even made it to the floor of Congress.
“Today’s settlement presents a significant change for a college athletics system still facing tremendous legal uncertainty absent Congressional action,” Sen. Ted Cruz (R-TX) said in a statement provided to On3. “I carefully worked with athletic associations, conferences, universities, and student-athletes across the country to put forth draft legislation that would allow for this agreement, including the revenue-sharing provisions, without degrading the educational benefits many student-athletes receive.
“Overall, I believe this agreement demonstrates the urgent need for Congress to act and give the more than half a million student-athletes across the country to continue using athletics as a path to get an education and develop life skills for their future.”
Ted Cruz has clout to push legislation
A ranking member of the U.S. Senate Committee on Commerce, Science and Transportation, Ted Cruz has the position and political clout to push through legislation. He’s long been viewed as a power player when it comes to the NCAA securing its long-sought legislation.
While the NCAA and power conferences have agreed to the terms of the settlement, legal experts and athlete advocates believe the only sustainable model – and one that protects the NCAA from further litigation absent Congressional intervention – is one that opens the door to athletes collectively bargaining their compensation and benefits.
In a statement Thursday night, Notre Dame President Rev. John I. Jenkins called for Congress to “pass legislation that will preempt the current patchwork of state laws; establish that our athletes are not employees, but students seeking college degrees; and provide protection from further anti-trust lawsuits.” The same wishlist Baker and the NCAA have long sought.
The House v. NCAA settlement has not given athletes a say in determining compensation or benefits, now or in the future. Congresswoman Lori Trahan (D-MA) released a statement Friday calling for college leaders to collectively bargain rather than call on Congress.
“This agreement is a massive victory for athletes who create the value in college sports and deserve a share in the multibillion-dollar revenue they generate,” she said. “Over the past decade, college athletes have sued for violations of their rights in court, and they’ve won significant progress not just for themselves, but athletes everywhere. Rather than asking Congress to turn back the clock, college leaders should take this opportunity to embrace a future where athletes have a seat and a voice at the table when decisions are made about the industry built on their hard work.”
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