Power 5, NCAA in Historic Player Pay Agreement

The SEC and Pac-12 have joined the Big Ten, ACC, Big 12, and NCAA in reaching a multi-billion-dollar settlement that will allow schools to directly compensate student-athletes for the first time in NCAA history, as reported by ESPN on Thursday. NCAA president Charlie Baker and the commissioners of the five power conferences released a joint statement on Thursday evening, stating that the agreement marks an important step in the reform of college sports, providing benefits to student-athletes and bringing clarity to college athletics for years to come. The settlement, which would also resolve three federal antitrust cases, is set to provide over $2.7 billion in back damages to former college athletes over the next decade due to previous restrictions on name, image, and likeness (NIL) deals. Additionally, current and future athletes stand to benefit, with plans by the Big 12, ACC, and Big Ten to establish a system enabling schools to pay athletes approximately $20 million per year in revenue sharing, starting in the fall of 2025. The ACC and Big 12 agreed to the terms of the settlement on Tuesday, with the Big Ten following suit on Wednesday. As part of the agreement, athletes will forfeit their ability to sue the NCAA in future antitrust cases and must drop their complaints in the ongoing lawsuits of Carter v. NCAA, Hubbard v. NCAA, and House v. NCAA. However, former Colorado football player Alex Fontenot’s lawsuit against the NCAA for how TV revenues are shared with players is not covered in this proposed settlement. The finalization of the settlement is pending approval from U.S. District Judge Claudia Wilken, who is overseeing the three antitrust cases. If players opt to join Fontenot’s lawsuit, it could potentially nullify the settlement agreed upon by the NCAA and Power 5 conferences. –Field Level Media