UNBELIEVABLE DISCOUNTS AT AMAZON.COM ||
The proposed House v. NCAA settlement received preliminary approval from Judge Claudia Wilken on Monday, moving the landmark case one step closer to finalizing a new financial model in college sports.
The approval comes one month after Wilken sent the settlement parties “back to the drawing board” during a preliminary hearing in which she called into question how the deal would limit third-party name, image and likeness (NIL) payments from boosters.
Lawyers representing both sides filed a slightly-revised version of the settlement terms on Sept. 26 which aimed to clarify the term “booster” and what specifically constitutes the pay-for-play incentives the NCAA is trying to eliminate as part of the settlement, according to The Athletic.
The revised proposal says that “enforcement authority over third-party NIL deals would no longer extend to all third parties…or the broadly defined term ‘boosters’” and would instead focus on a “narrower group of entities and individuals closely affiliated with the schools,” according to The Athletic.
Wilken reportedly didn’t provide any additional commentary or reasoning on why she granted preliminary approval.
Judge Claudia Wilken has preliminarily approved the House v. NCAA settlement in the U.S. District Court for the Northern District of California.
If ultimately approved, schools will be allowed to share $22 million in rev. share with athletes.
More: https://t.co/BhCCgwXHW0 pic.twitter.com/gSqqEgLDdb
— On3 NIL (@On3NIL) October 7, 2024
The NCAA and Power Conferences agreed to the 10-year settlement in May, which will pay athletes $2.7 billion in back-pay damages. They also came to terms on a revenue-sharing agreement that would allow schools to share $20-23 million annually in revenue to athletes.
The case was originally filed in 2020 with former Arizona State swimmer Grant House serving as the lead plaintiff.
Although Wilken granting preliminary approval is a step forward, the settlement process remains ongoing. The process of notifying current and former athletes of the terms and claims procedures will begin on Oct. 18, and those who would be covered by the agreement can object or opt out by Jan. 31, 2025.
The final approval hearing is scheduled for April 7, 2025.
There is concern, however, that more legal appeals will arise given the bumpy road this settlement has had in recent months. In August, lawyers representing three groups of athletes filed oppositions to preliminary approval, and after the slightly-revised version of the settlement terms was filed late last month, another group of athletes objected to it, USA Today reported.
If everything goes smoothly and final approval is granted, direct revenue sharing between schools will be implemented in July 2025.
