A seminal moment in college sports history has arrived.
Each of the Power Five conferences and the NCAA have voted in favor of the settlement in the House, Carter and Hubbard cases, as the NCAA and power conferences look to move forward with a new model that will change the entire landscape of the enterprise.
The Pac-12 and SEC were the final leagues to approve the settlement on Thursday night, sources confirmed to Sports Business Journal.
“This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students,” NCAA President Charlie Baker and the Power Five commissioners said in a joint statement. “All of Division I made today’s progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues.”
The actual ramifications of the settlement figure to be felt during the 2025-26 academic year, when the negotiated terms are likely to go into effect, assuming Wilken signs off in the coming months.
That said, the settlement centers on three key components: roughly $2.7 billion in back pay to athletes dating to 2016 over lost name, image and likeness revenues and Alston grants; a future revenue-sharing formula that will allow schools to pay athletes more directly through broadcast revenues and similar avenues; and significant changes to scholarship limits and policing of NIL practices.
