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Appeals Mount Against NCAA Settlement Over Athlete Compensation

By  |  July 6, 2025

The National Collegiate Athletic Association (NCAA) is now facing a series of legal challenges after a federal judge in California approved a groundbreaking multibillion-dollar settlement meant to compensate athletes for the use of their name, image, and likeness (NIL), according to Reuters.

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    The historic agreement, which would mark the first time U.S. colleges could legally pay both current and former student-athletes, has been met with both praise and pushback. While the core provision allowing schools to pay athletes is moving forward, legal opposition has stalled the distribution of $2.8 billion in back damages tied to the settlement, per Reuters.

    On Wednesday, a fourth appeal was filed with the 9th U.S. Circuit Court of Appeals in San Francisco, adding to a growing list of objections that are expected to delay compensation for class members by at least several months—possibly stretching into 2026. The appeals have triggered a partial freeze on the financial component of the settlement while the appellate court reviews the case.

    At the heart of the legal debate is a claim that the agreement may violate Title IX, the federal law prohibiting sex-based discrimination in education programs. Some challengers argue that the terms of the deal disproportionately favor male athletes, raising concerns over gender equity.

    Read more: Female Athletes Challenge NCAA $2.7 Billion Settlement, Citing Title IX Concerns

    The settlement, which resolves three separate lawsuits, addresses NCAA restrictions that plaintiffs argued were in violation of U.S. antitrust law. If upheld, the deal is expected to deliver not only retroactive compensation but also open the door for future payments projected in the tens of billions over the next decade, with schools using revenue from media rights and commercial partnerships.

    The NCAA, while denying any legal liability, has maintained that the agreement brings much-needed “stability to college sports,” Reuters reported. The association’s position reflects a broader shift in collegiate athletics as NIL rights gain momentum across the nation.

    In response to the Title IX-based challenges, Steve Berman, lead attorney for the athletes, criticized the strategy of using gender discrimination claims to delay the distribution of funds. “If these lawyers believe that a Title IX case will succeed, they should bring it and not hijack payments to college athletes that could be life changing,” Berman stated.

    The 9th Circuit is expected to consolidate the appeals and lay out a schedule for arguments in the coming months. Given the case’s complexity, legal experts anticipate a ruling on the merits could arrive sometime in 2026. Regardless of the appellate court’s decision, the matter may ultimately land before the U.S. Supreme Court.

    Source: Reuters