Historic NCAA settlement reached allowing schools to pay players

The NCAA and its five power conferences reached a historic agreement on Thursday, settling several antitrust lawsuits while establishing a revolutionary revenue-sharing deal that allows schools to pay players for the first time.

According to Dan Murphy and Pete Thamel of ESPN, if approved, schools will be allowed to share $20M annually with their athletes beginning in 2025.

The deal would also include $2.7M in damages paid to past and current athletes, settling three pending federal antitrust cases. Any Division-I athlete who played from 2016 onward is eligible but must also forfeit their right to sue the NCAA for "other potential antitrust violations."

The settlement is a potential catalyst for a more balanced system, especially in college football. But, there might still be a pushback from athletes and their supporters over future rights and earnings, potentially changing how the revenue-sharing plan is structured. Likewise, the uncertainty has also raised concerns among athletic directors.

"Some of the challenges to solve include figuring out how to distribute the revenue share money in a way that meets market needs while complying with Title IX laws and if schools can regain control of the marketplace for college athletes, which has been outsourced during the last three years to a group of booster collectives, who pay athletes via name, image and likeness endorsement deals," the ESPN report read.

However, name, image and likeness deals might soon be a thing of the past. Though he refused to elaborate, Steve Berman, the co-lead counsel representing college athletes, told ESPN that the settlement includes a "mechanism" that would essentially eliminate the NIL marketplace.

A judge still needs to authorize the settlement details, and cases must be officially closed, which could take several months. Yet, in the ever-changing landscape of college sports, this feels like the beginning of perhaps the biggest shakeup in NCAA history.