In an effort to avoid a potential $4 billion payout in damages, leaders in college sports are engaged in deep discussions to establish a legal settlement that could pave the way for a new NCAA business model. The case of House v. NCAA is set to go to court in January 2025, and if the plaintiffs win, the NCAA and its schools could be held liable for significant damages.
Last week, a significant turning point was reached in the negotiations during a meeting between power conference commissioners, general counsels, NCAA President Charlie Baker, NCAA lawyers, and plaintiffs’ attorneys in Dallas. While progress has been made in recent weeks, obstacles and objections remain at the campus level that need to be addressed before a deal can be reached.
The proposed settlement is expected to cost billions of dollars in back pay for former athletes and would likely result in the NCAA and conferences agreeing to share more revenue with players going forward. The top-end revenue share per school is estimated to be around $20 million annually, although this figure has not been finalized yet.
The idea of revenue sharing emerged from the SEC-Big Ten joint advisory group announced by both conferences in February. This group includes university presidents/chancellors and athletic directors and has played a significant role in shaping discussions around revenue sharing in college sports.
