Oakland, California – A pivotal moment in the future of college sports is set to unfold in a courtroom in Oakland, California on Monday as U.S. District Judge Claudia Wilken presides over a hearing that could shape the landscape of collegiate athletics. The hearing marks the final step before a groundbreaking $2.8 billion settlement of a lawsuit against the NCAA and major conferences will come into effect. Among the changes, schools will be allowed to pay their athletes up to $20.5 million each.
Wilken has already granted preliminary approval for the settlement, and the hearing on Monday is expected to include testimonies from those who have raised objections to certain aspects of the plan. LSU gymnast and influencer Olivia Dunne is among the 18 individuals scheduled to testify, albeit remotely via Zoom.
The settlement, known as the House settlement after Arizona State swimmer Grant House, consolidates three similar lawsuits and shifts billions of dollars from universities to athletes. The new structure is slated to take effect on July 1, prompting universities to make preparations for the changes.
One significant aspect of the settlement requires schools from major conferences to allocate 22% of their revenue from media rights, ticket sales, and sponsorships – approximately $20.5 million annually – directly to athletes for their name, image, and likeness (NIL). This move aims to address the issue of athletes profiting from their NIL, a practice that has reshaped college sports in recent years.
In addition to NIL payments, the settlement includes $2.8 billion in back damages for athletes who were not able to benefit fully from NIL between 2016 and 2024. The distribution of these payments, which will favor football and basketball players, will be overseen by the NCAA and conferences.
Another key provision of the settlement involves replacing scholarship limits with roster limits, ensuring that every athlete is eligible for a scholarship. However, this adjustment may have repercussions for walk-on athletes and smaller sports programs that contribute to the U.S. Olympic team.
As the college sports landscape undergoes this transformation, stakeholders are bracing for a new era where athletes have greater opportunities to profit from their talents. The implications of these changes extend beyond the courtroom, affecting the future of collegiate athletics and the relationships between schools, athletes, and the governing bodies.