U.S. Judge OKs $2.8-B Settlement, Paves Way For Colleges To Pay Athletes

A federal judge approved what is being called one of the most significant changes in college sports history, clearing the way for U.S. colleges to begin directly paying athletes—effectively ending the amateurism model that defined college sports for over a century, Eddie Pells reported for the Associated Press (AP).

The deal comes nearly five years after Arizona State swimmer Grant House sued the NCAA and its five largest conferences to lift restrictions on revenue sharing. I Photo: Nkp911m500 Wiki

Nearly five years after Arizona State swimmer Grant House sued the NCAA and its five largest conferences to lift restrictions on revenue sharing, U.S. Judge Claudia Wilken approved the final proposal.

The deal had been held up over issues like roster limits and concerns about walk-on athletes losing opportunities.

The sweeping terms of the so-called “House settlement” include allowing each school to distribute up to $20.5 million to athletes over the next year and providing $2.7 billion in back pay over the next decade to thousands of former players who were previously excluded from revenue sharing.

One of the lead plaintiff attorneys, Steve Berman, called the decision “a fantastic win for hundreds of thousands of college athletes.”

The agreement represents a seismic shift for hundreds of schools now grappling with the reality that athletes—particularly in football and basketball—are the primary drivers of the billions of dollars in revenue from TV deals and other sources.