House vs. NCAA: Former Student-Athletes Are Now Eligible for Backpay

Earlier this month, Judge Claudia Wilken approved a $2.8 billion settlement that is to be paid by the NCAA. As part of the settlement, former student-athletes who competed for NCAA institutions between June 15th, 2016 - September 15th, 2024 will be eligible to receive compensation they may have missed out on due to the recent installation of NIL (Name, Image, Likeness). Athletes have until January 31, 2025 to apply for a portion of this settlement.

See the link below where athletes can make their claim:

College Athlete Compensation

Photo via New York Times

This incident has caused a bit of controversy throughout the nation. While this revenue sharing may positively impact former NCAA student-athletes, a final approval of the settlement will cause financial adjustments for most schools & teams. Specifically, scholarships will be limited, rosters will be capped, athletic staff will be cut, & facilities will be delayed in potential upgrades. Their effect is also greater for different sports. Most of the money from the settlement is expected to go to Power 5 schools, specifically Football & Basketball.

However, non-revenue generating sports are at the greatest risk in this historic push forward to compensate athletes. Most college sports don’t generate revenue, but the poorer performing teams at mid-major or lower-end D1 schools may be the first to go for schools if they are already in hot water financially.

If the final settlement goes through, revenue sharing for athletes will go into effect beginning July 2025.