NCAA Settlement Allows Power 5 Schools to Pay Athletes $20 Million Annually: A Historical Shift in College Sports

_SEC_, _, _United States_ United States of America
Each Power 5 school can distribute up to roughly $20 million per year directly to its athletes as part of a revenue-sharing plan.
NCAA agrees to historic settlement allowing Power 5 schools to pay athletes directly for the first time in college sports history.
Revenue sharing would be optional for power-conference programs, potentially as soon as next year.
The NCAA will pay over $2.7 billion in damages to past and current athletes dating back to 2016.
NCAA Settlement Allows Power 5 Schools to Pay Athletes $20 Million Annually: A Historical Shift in College Sports

NCAA Agrees to Historic Settlement Allowing Schools to Pay Athletes

The NCAA and its five power conferences have reached a landmark settlement that will allow schools to pay athletes directly for the first time in college sports history. The agreement comes after years of antitrust lawsuits challenging the NCAA's rules on amateurism.

Under the terms of the settlement, each Power 5 school can distribute up to roughly $20 million per year directly to its athletes as part of a revenue-sharing plan. The NCAA will pay over $2.7 billion in damages to past and current athletes dating back to 2016.

The next step is for the settlement to be submitted for preliminary approval by Judge Claudia Wilken of the U.S. District Court for the Northern District of California.

This marks a significant shift in college sports, as athletes will now have the opportunity to earn compensation beyond scholarships and grants-in-aid.

Background Information: The NCAA is a nonprofit organization that governs college sports in the United States. The power conferences include the Atlantic Coast Conference (ACC), Big Ten, Big 12, Pac-12, and Southeastern Conference (SEC).

The settlement comes after several high-profile antitrust lawsuits challenging the NCAA's rules on amateurism. These cases included House v. NCAA, Hubbard v. NCAA, Carter v. NCAA, O'Bannon and Alston lawsuits.

Facts:

  1. The settlement includes payments of over $2.7 billion from the NCAA to former Division I athletes as damages for lost NIL earning opportunities.
  2. Revenue sharing would be optional for power-conference programs, potentially as soon as next year, in which 22% of those schools' average annual revenue would be distributable directly to athletes.
  3. The settlement must first be approved by Judge Claudia Wilken of the U.S. District Court for the Northern District of California.

Bias: It is important to note that this article does not express any bias towards or against any particular source, individual, or organization involved in this story.



Confidence

90%

Doubts
  • It is unclear how many schools will choose to participate in the revenue-sharing program.
  • The settlement must still be approved by Judge Claudia Wilken of the U.S. District Court for the Northern District of California.

Sources

85%

  • Unique Points
    • NCAA and Power 5 conferences reached a settlement to allow schools to pay athletes directly.
    • Settlement includes distribution of $2.75 billion to athletes who competed before July 2021.
    • Each Power 5 school allowed to distribute around $20 million per year directly to athletes based on percentage of average revenue earned annually by the conference.
    • Schools outside Power 5 conferences expected to be able to opt in.
    • Football players and men’s basketball players at large programs most likely to receive payments due to historically generated revenue from TV contracts for those sports.
    • Women’s basketball also earns some revenue, and they could receive payments as well.
  • Accuracy
    • ]NCAA and Power 5 conferences reached a settlement to allow schools to pay athletes directly.[
    • The NCAA will pay more than $2.7 billion in damages over 10 years to past and current athletes.
    • Each school can share up to roughly $20 million per year with its athletes as part of a revenue-sharing plan.
  • Deception (30%)
    The article contains selective reporting as it focuses on the distribution of money to athletes in Power 5 conferences and does not mention the potential impact on athletes in smaller conferences or non-revenue generating sports. The author also makes assumptions about Title IX applications without providing any concrete information.
    • As an example, Mitten pointed to his employer, Marquette,
    • It's expected that other schools, those outside the Power 5 conferences, will be able to opt in.
    • The agreement, part of a class-action lawsuit known as House v. NCAA, must be approved by a federal judge overseeing the case, a decision that could be months away.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

  • Unique Points
    • The NCAA and its five power conferences have agreed to allow schools to directly pay players for the first time in the 100-plus-year history of college sports.
    • Each school can share up to roughly $20 million per year with its athletes as part of a revenue-sharing plan.
    • The NCAA will pay more than $2.7 billion in damages over 10 years to past and current athletes.
  • Accuracy
    • NCAA agreed to a $2.8 billion settlement with current and former college athletes.
    • Each Power 5 school allowed to distribute around $20 million per year directly to athletes based on percentage of average revenue earned annually by the conference.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

79%

  • Unique Points
    • Title IX was not addressed in the settlement, it only refers to opportunities not financial compensation for male and female athletes equally
    • There will be a reporting mechanism in place that requires athletes to report third-party NIL deals that are not part of revenue-sharing profits
  • Accuracy
    • ]The NCAA agreed to pay nearly $2.8 billion to settle antitrust claims[
    • Each Power 5 school allowed to distribute around $20 million per year directly to athletes based on percentage of average revenue earned annually by the conference.
    • Schools likely will begin sharing revenue in fall 2025.
  • Deception (30%)
    The author makes several statements that imply facts without providing sources or context. For example, 'It is a federal law that requires institutions to offer equal opportunities for male and female athletes.' This statement is not entirely true as Title IX does refer to financial compensation. The author also states 'NCAA leaders are looking to Congress to pass legislation that shields it from future antitrust lawsuits.' However, it's unclear if this is a fact or an opinion, and no source is provided. Additionally, the author uses emotional manipulation by stating 'It's the professionalization of the college sports enterprise.' This statement is an opinion and does not add any value to the article.
    • NCAA leaders are looking to Congress to pass legislation that shields it from future antitrust lawsuits.
    • It is a federal law that requires institutions to offer equal opportunities for male and female athletes.
  • Fallacies (85%)
    The author makes an appeal to authority when quoting Mike Cragg and Mike Aresco. He also uses inflammatory rhetoric by stating 'It's the professionalization of the college sports enterprise.' and 'This isn’t the wild west – it’s worse than the wild west.'
    • “It’s the professionalization of the college sports enterprise,” St. John’s athletic director Mike Cragg told The Post in a phone interview.
    • “The wild west had more laws and regulations than we do. This isn’t the wild west – it’s worse than the wild west.” Aresco said.
  • Bias (95%)
    The author expresses a clear bias towards the professionalization of college sports and the NCAA's archaic model being no more. He quotes Mike Cragg, St. John's athletic director, who also expresses this viewpoint. The author also mentions that schools will have freedom to use the money how they see fit and that lesser revenue sports are likely to take a hit.
    • It's the professionalization of the college sports enterprise.
      • There's going to be a lot of cuts on these campuses. Sports are going to get relegated or moved down to Division III or club. To protect the money-making sports, other things are going to suffer.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      98%

      • Unique Points
        • The N.C.A.A. agreed to a $2.8 billion settlement with current and former college athletes.
        • The settlement would create a system for Division I athletes to be paid directly by their schools for playing sports, a first in the N.C.A.A.’s history.
      • Accuracy
        • ]The N.C.A.A. agreed to a $2.8 billion settlement with current and former college athletes.[
        • The NCAA will pay more than $2.7 billion in damages over 10 years to past and current athletes.
        • NCAA agreed to pay nearly $2.8 billion to settle antitrust claims.
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      99%

      • Unique Points
        • NCAA and power conferences approved a multibillion-dollar settlement to resolve three antitrust lawsuits.
        • The settlement includes payments of over $2.75 billion from the NCAA to former Division I athletes and a future revenue-sharing model between power-conference schools and athletes.
        • Revenue sharing would be optional for power-conference programs, potentially as soon as next year, in which 22% of those schools’ average annual revenue would be distributable directly to athletes.
        • Damages, made available to D-I athletes dating back to 2016 as back-pay for lost NIL earning opportunities, would be paid out over 10 years via a combination of NCAA reserve funds and reductions in future revenue distributions to conferences.
        • The next step is submitting the settlement to Judge Claudia Wilken of the U.S. District Court for the Northern District of California for preliminary approval.
        • If finalized, the settlement would be the next and most significant overhaul to college sports’ long-standing framework of amateurism.
      • Accuracy
        • ]The settlement includes payments of over $2.75 billion from the NCAA to former Division I athletes[
        • Each Power 5 school allowed to distribute around $20 million per year directly to athletes based on percentage of average revenue earned annually by the conference
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication