The National Collegiate Athletic Association (NCAA) and its five power conferences—ACC, SEC, Big Ten, Big 12, and Pac-12—have unanimously agreed to allow schools to directly compensate student-athletes. This landmark move represents a significant shift in the century-long tradition of college sports.
For the first time, college athletes will receive direct payments from their respective institutions. This decision addresses long-standing debates about fair compensation for student-athletes who significantly contribute to the multibillion-dollar college sports industry.
The NCAA and the power conferences are set to settle three pending federal antitrust cases, with the settlement expected to exceed $2.7 billion in damages over the next decade. This financial compensation will benefit both past and current athletes, marking a monumental change in the landscape of college sports.
Under the new revenue-sharing model, each school within the power conferences will be allowed to distribute approximately $20 million per year to its athletes. This approach is seen as a significant step toward recognizing the substantial value that student-athletes bring to their universities.
Despite this progress, the agreement does not fully resolve all legal issues related to college sports. Advocates continue to push for further reforms, including potential employee status for athletes and collective bargaining rights. However, this settlement marks a crucial milestone in addressing antitrust concerns.
The settlement terms are pending approval by Judge Claudia Wilken, who presides over the three antitrust cases. Implementation is expected to begin in the fall of 2025, allowing schools to start sharing revenue with athletes.
Illinois Athletic Director Josh Whitman, chair of the NCAA’s Division I Council, acknowledged that this process is just the beginning. This means that as the sports landscape continues to evolve, further adjustments may be necessary.