By Jyesha Nance
Remember the $2.8 billion dollars that was “promised” to athletes? Well, you shouldn’t always count money that’s not in your hand or bank account. Currently, the proposal is stalled amid ongoing discussions. The topic of Name, Image, and Likeness continues to spark debate about whether athletes should receive compensation or how they should receive compensation.
This summer, a settlement was proposed with the aim of resolving the NIL issue by 2025. Under this agreement, the National Collegiate Athletic Association and several major sports conferences would pay $2.8 billion in what amounts to “back pay” for the use of athletes’ names, images, and likenesses dating back to 2016. Additionally, the deal would establish a revenue-sharing model, allowing participating colleges to distribute about 20 percent of their annual revenue-approximately $20 million each- to their athletes.
Judge Claudia Wilken, who is presiding over the House v. NCAA case, has instructed lawyers to revisit the drawing board. Wilken expressed that the proposed payment may not be as equitable as it seems and warned that accepting the funds could restrict athletes from receiving payments from groups like sports boosters, known as “collectives.” These collectives have been utilized as a pool of resources to retain certain players and attract others to specific universities.
Considering the current impasse, some states have taken the initiative to bypass the delay by compensating their athletes directly. For example, Georgia Gov. Brian Kemp has addressed the issue of “unfulfilled promises” regarding NIL compensation by signing an executive order that prohibits the NCAA, Atlantic Coast Conference, Southeastern Conference, or any other organization from blocking direct payments to athletes in Georgia. This order also enables universities to fund NIL payments.
As one state or university takes action, others will likely follow suit, leading to further developments in this ongoing situation. As more information about the situation is discovered, follow along through MET Agency.
Sources:
https://www.insidehighered.com/news/quick-takes/2024/09/09/judge-challenges-terms-proposed-settlement-athlete-pay#:~:text=Under%20the%20settlement%2C%20the%20NCAA,images%20and%20likenesses%20since%202016.
https://www.13wmaz.com/article/sports/local-sports/gov-brian-kemp-signs-executive-order-allowing-georgia-colleges-to-issue-nil-payments/93-847cc0b5-5546-41c3-af20-43ca9e7cd825#:~:text=Kemp%20signed%20an%20executive%20order,such%20student%2Dathlete's%20