Mike Scarcella
(Reuters) – The National Collegiate Athletics Association (NCAA) has agreed to allow member schools to directly share revenue with athletes and pay nearly $2.8 billion in past damages as part of a settlement resolving claims by players suing over their athletic services.
The NCAA and the law firms of two plaintiffs who were fighting class-action lawsuits in U.S. court revealed the scope of the landmark agreement Thursday after collegiate athletics’ governing body and member conferences approved the agreement.
The settlement resolves three lawsuits that alleged the NCAA violated antitrust laws by limiting compensation and benefits to students for their athletic activities. The NCAA denies any wrongdoing.
Under the terms of the deal, subject to the judge’s approval, the NCAA would waive some rules prohibiting schools from making direct payments to athletes. Schools will also be allowed to share revenue with athletes through new payments and benefits. Plaintiffs’ lawyers estimated the cost at more than $20 billion over 10 years.
Jeffrey Kessler, a leading athlete lawyer, predicted a “new world” for college players after the settlement. Attorney Steve Berman, who handled the case with Kessler, called the deal “revolutionary.”
The NCAA and its group of conferences in a statement called the agreement “a road map for college sports leaders and Congress to ensure this unique American institution can continue to provide unparalleled opportunities for millions of students.”
The deal does not resolve all cases against the NCAA.
Plaintiffs’ attorneys representing college athletes in a lawsuit against the NCAA in Colorado told a judge they would scrutinize the terms of any proposed settlement.
The lawsuit, filed last year, said the NCAA deprived student players of billions of dollars in compensation for televising college athletics events.
The NCAA also faces ongoing litigation over various rules regarding transfer eligibility, recruiting-related compensation agreements and prize money received at non-NCAA events.