Proposed $2.77 billion settlement clears first step of NCAA approval with no change to finance plan

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A potential multibillion-dollar settlement of an antitrust lawsuit has cleared the first of a three-step NCAA approval process, with no change to a payment structure that would have the 27 college conferences not named in the suit cover the majority of a $1.6 billion portion of the damages.

The Division I Board of Directors finance committee on Monday night passed the proposed $2.77 billion settlement of House vs. NCAA to the full board with a recommendation to stick with the original finance plan.

The NCAA, Big Ten, Big 12, Atlantic Coast Conference, Pac-12 and Southeastern Conference are defendants in the House case, a class-action lawsuit that seeks back pay for college athletes who were denied name, image and likeness compensation dating to 2016. The NCAA lifted its ban on athletes earning money for sponsorship and endorsement deals in 2021.

The Big 12 became the first conference to approve the settlement Tuesday, with their board of university presidents and chancellors voting unanimously in favor, a person with direct knowledge of the decision told The Associated Press. The person spoke on condition of anonymity because the conferences were not making any public statements about the settlement for now.

Moving forward, it will be the Big Ten, Big 12, ACC and SEC carrying the financial burden in a proposed revenue-sharing system that asks each of its schools to commit upwards of $20 million per year to be paid directly to athletes. The overall commitment is expected to be about $300 million per school over 10 years.

The NCAA office is set to cover the damages portion of the case over 10 years through a reduction of operating expenses, insurance and reserve funds. Withheld distributions to its 352 Division I member schools would cover the rest. The NCAA distributes more than $700 million per year to its…

Source link : https://sports.yahoo.com/proposed-2-77-billion-settlement-005311088.html

Author : NBC Sports

Publish date : 2024-05-22 00:53:11

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