Judge OKs House v. NCAA settlement to allow revenue sharing with athletes

Judge Claudia Wilken approved a settlement Friday for a trio of class-action lawsuits, known as House v. NCAA, to allow schools to directly share revenue with their athletes.

NCAA institutions will be permitted to share up to $20.5 million total with athletes from July 1, 2025, to July 1, 2026. The shareable amount will increase each year.

Schools are not required to share revenue and are allowed to determine how the revenue will be shared among different sports. Most Power 5 schools are planning to allocate 90% of the funds to football and men's basketball because of their popularity and ability to generate revenue, according to Ross Dellenger of Yahoo Sports. Women's basketball, baseball, volleyball, and Olympic sports are expected to receive the majority of the remaining 10%.

In addition to allowing schools to pay current athletes, many athletes that played from 2016-24 will be eligible to receive a portion of a $2.8 billion backpay agreement that was approved with the settlement. The NCAA will pay those athletes over the next 10 years.

"(The NCAA) will focus on further enhancing what is working: elevating the student-athlete experience and maintaining fair playing rules and eligibility and academic standards," NCAA president Charlie Baker said in a statement endorsing the settlement. "Student-athletes will benefit from the rich opportunities they enjoy now, plus far more scholarship opportunities, landmark financial benefits and a streamlined NCAA to support them."

A new entity, the College Sports Commission, will oversee payment details. MLB vice president of investigations and deputy general counsel Bryan Seeley is being hired to run the commission.

In addition to the College Sports Commission, a Deloitte-run clearinghouse called NIL Go will need to approve all NIL deals worth $600 or more, Dellenger reported.