Historic Athletics Settlement Approved

Judge Claudia Wilken approved the House v. NCAA settlement, which relates to Name, Image, and Likeness (NIL) allocations and revenue sharing with student-athletes. Although the June 6, 2025, agreement only directly applies to institutions that opted in to the settlement, its repercussions likely will affect other institutions.

Starting July 1, 2025, affected institutions can make direct revenue sharing payments to student-athletes. Some of the settlement’s major provisions include:

1. A nearly $2 billion NIL Settlement Fund with distributions for video game NIL damages, broadcast NIL damages, and potential third-party NIL payments for Division I competition that occurred at any time from June 15, 2016, through Sept. 15, 2024
2. A $600 million Additional Compensation Claims fund, to be divided to student-athletes with pay-for-play (athletic services) claims
3. Annual direct benefits and compensation to student-athletes from a percentage of the settling institutions’ combined revenue pools likely to start with a cap of $20 million per school in the 2025-26 school year and grow to $32.9 million per school in 2034-35
4. Additional award scholarships to DI athletes above the number permitted under current rules, subject to roster limits
5. NCAA allowed to adopt roster limits for DI sports

Note: Settlement class members whose roster spots were or could have been taken away because of the settlement’s immediate implementation are exempt from roster limits at any DI school for the duration of their college athletics careers. These class members will not count toward any school’s roster limit for the remainder of their DI eligibility.

Also as a result of this settlement, the NCAA will allow NIL with limited specified restrictions, the NCAA will create a new governance system for DI, and a new regulatory body called the College Sports Commission will oversee NIL and revenue sharing.