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Entertainment & Sports

Jun. 24, 2024

NCAA’s $2.75B settlement paves way for athlete compensation revolution

The revenue-sharing model will likely phase out numerous NIL collectives, as athletic departments prefer to directly fund their rosters and manage salary structures themselves.

Brian D. Anderson

Partner, Sheppard Mullin

Shutterstock

In May, the National Collegiate Athletics Association (NCAA) settled the House v. NCAA class-action lawsuit, agreeing to pay $2.75 billion in back-pay damages to former Division 1 student-athletes over the next decade.

This marks the first-time schools will directly compensate student-athletes.

The NCAA, a non-profit organization overseeing college athletics, along with the Power 5 ...

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