By Jyesha Nance
The NCAA and the Power Five conferences reached an agreement on May 23, concerning the financial compensation of athletes. This groundbreaking agreement marks the first instance in over a century where players will receive direct payment for their participation.
It has been determined that this should have been happening. Consequently, they have been instructed to go back and reimburse athletes, even those who have already left college. Approximately $2.7 billion for 2016 and current athletes will be distributed. Furthermore, a revenue sharing plan will be introduced, allowing each school to share up to $20 million annually with athletes on an active roster.
This implementation will be considered a fair share versus players getting money from the collective. All players on a roster will possibly not benefit the same, some may receive small amounts of money while others will receive more.
Traditionally, college athletes have not been granted any form of direct compensation by the NCAA. However, this changed in 2021 when the US Supreme Court nullified limitations on athlete compensation, enabling them to generate income through endorsements and other avenues associated with their personal brand.
Although the change has been implemented, it will still be some time before players are paid. A preliminary hearing is scheduled for July, pending approval from Judge Claudia Wilken. If the details are approved, the plaintiffs' attorneys will launch a website and distribute a notice outlining the potential benefits of remaining in the class and the process for opting out. Typically, class members have a 30-day window to voice objections or opt out of a settlement. Opting out means players will lose any potential damages payment but can still pursue legal action against the NCAA and its schools for antitrust violations in the future.
Those that choose to accept the payment must refrain from suing the NCAA for potential antitrust violations and drop complaints in three ongoing cases: House v. NCAA, Hubbard v. NCAA, and Carter v. NCAA. Judge Wilken is overseeing the cases and is expected to be finalized by 2025.
However, the agreement does not resolve all the ongoing legal issues that have transformed the college sports industry and disrupted the multi-billion-dollar business. Athletes and their advocates are still striving to be recognized as employees or explore alternative avenues for collective bargaining, which could potentially reshape revenue-sharing agreements. Nevertheless, this agreement could reduce the NCAA's vulnerability to antitrust litigation, which has been a catalyst in compelling schools to provide greater support for athletes.
In summary, this is well past due and should have been implemented years ago. Numerous athletes have been taken advantage of. Some are not assured of reaching the NFL, so this could contribute to their future after college. This compensation will be more logical and will cater to all involved.
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