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Athletes Challenge NCAA’s $2.8 Billion Settlement Over Compensation Restrictions

By  |  February 3, 2025
NCAA

Some current and former college athletes are pushing back against a proposed $2.8 billion settlement involving the National Collegiate Athletic Association (NCAA), as a federal judge reviews the deal. According to Bloomberg, more than a dozen objections were submitted to the US District Court for the Northern District of California by the January 31 deadline, with some challengers criticizing a provision that allocates most of the settlement funds to male athletes.

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    The objections highlight concerns that the settlement fails to adequately consider Title IX regulations, which mandate gender equity in college sports. Per Bloomberg, these filings represent a final attempt to influence the court before an April hearing determines the fairness of the resolution.

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    Judge Claudia Wilken initially granted preliminary approval to the settlement in October. The deal emerged following years of litigation alleging that the NCAA violated antitrust laws by prohibiting college athletes from earning compensation through their name, image, and likeness (NIL).

    Under the terms of the agreement, the NCAA and the Power Five conferences would distribute the $2.8 billion settlement over a 10-year span. Additionally, universities would be permitted to provide direct payments and benefits to athletes amounting to up to 22% of their average annual athletic revenue—an unprecedented shift in collegiate athletics that could reshape compensation structures within the billion-dollar industry.

    Related: DOJ Raises Concerns Over $2.8 Billion NCAA Settlement

    Despite the opposition, both the NCAA and the legal representatives of the class maintain confidence in the settlement’s approval. According to Bloomberg, Steve Berman, managing partner at Hagens Berman Sobol Shapiro LLP and an attorney for the class, stated that most objections had already been considered and dismissed when preliminary approval was granted.

    Berman defended the agreement, arguing that the damages constitute a significant percentage of potential recovery in an antitrust case and that the prospective financial benefits could exceed $20 billion. He emphasized that the settlement places athletes “on an equal footing with the pros” and characterized it as a “fair settlement for sure.”

    Source: Bloomberg