Big 12 presidents and chancellors voted to approve proposals in the House v. NCAA class-action lawsuit on Tuesday, a source confirmed to The Athletic. The approval marks a significant step toward a resolution in the case that is expected to have a major impact on the college sports business model.
The Big 12 is the first defendant in the lawsuit to vote on the settlement terms, with the other power conferences and the NCAA Board of Governors expected to follow suit this week. The settlement is anticipated to cost nearly $3 billion in damages and will allow athletes from power-conference schools to share in annual revenues for the first time.
The House v. NCAA lawsuit aims to secure back pay for Division I college athletes who were previously restricted from earning name, image, and likeness (NIL) compensation. The lawsuit also seeks a share of future broadcast revenues for athletes at power-conference schools.
With the NCAA facing potential damages of up to $20 billion if it were to lose the House case at trial, recent weeks have seen intensified efforts to reach a settlement. The proposed settlement, in addition to more than $2.7 billion in NIL back-pay damages, includes a system where power-conference schools can distribute around $20 million annually directly to their athletes.
It is becoming increasingly clear that the era of amateurism in college sports is drawing to a close.
Attorney Jeffrey Kessler, representing the plaintiffs, stated, “I expect the athletes who are generating the most money would get the greatest economic return. That’s the economic competitive market we live in.”
The potential settlement in the House case is just one of the legal battles the NCAA is facing. The organization recently had to deal with the NCAA v. Alston decision by the U.S. Supreme Court and laws ushering in the NIL era, among others. These challenges have highlighted the vulnerabilities in the traditional collegiate model.
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