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A $2.8 billion settlement will completely rewire how college athletes are paid—but fans and students will foot much of the bill through ticket and tuition fees

AP25097020808536 e1744040017735

The settlement of a lawsuit against federal friction was a value of $ 2.8 billion from athletes against NCAA and the largest conference (ACC, Big Ten, Big 12, PAC-12 and SEC)The defendants and the prosecutors agreed to itIn May 2024, it was not long before the American judge Claudia Wilkin, who must give final approval before entering early July 1. Some questions and answers about this huge change of university athletics:

Q: What is the settlement of the house and why does it matter?

A: Graant House is the Arizona state swimmer, to file a lawsuit against the defendants. A lawsuit and two others have been combined and over several years, the conflict ended with the proposed settlement that will create a new basic structure for university sports. What is the pioneer is that it has ended a ban for decades on schools that cut checks directly to athletes. Now, schools will be able to pay the so -called athletes, and compensate them for the use of their name, image and ideals.

Q: How many schools will pay the athletes and where will the money come?

A: In the first year, each school can share up to $ 20.5 million with athletes, a number that represents 22 % of its revenues such as media rights, ticket sales and care. “These are the resources and revenues that are not present.” Some of them will be raised by increasing television rights packages, especially forThe newly expanded university football team.But some schools increase the costs of the masses throughTalent fee, high concession pricesand“Sports fees”Added to education costs.

Q: What about scholarships? Wasn’t that like paying athletes?

A: The scholarships and the “cost of attendance” have always been part of the deal for athletes in the first section, and there is definitely a value for that, especially if the athletes obtained their degree. But they have long argued that it was hardly enough to compensate them for millions in the revenues they helped to schools, which went to many places, including the salaries of trainers of millions of dollars.

Q: Do the players not receive money for a while now, though?

A: Yes, since 2021. In the face of the losses in the court and a growing number of state laws targeting its amateur policies, NCAA has wiped the road to athletes to receive funds from third parties, including the so -called donors -based groups that support various schools. Under the house, the school can pay this money directly to the athletes and the groups are still in the game.

Q: What about the players who played before not allowing?

A: The main component of the settlement is $ 2.78 billion in the back who go to athletes who competed between 2016-24 and they were completely removed or partly from those payments. It will come from NCAA and conferences (but from schools, which will receive lower batches of natural things like March Madness).

Q: Who will get most of the money?

A: Because men’s football and basketball are the basic revenue drivers in most schools, and these funds help in financing all other sports, it is logical that football and basketball players get most of the money. But this is one of the most difficult calculations for the schools you do.

Q: It is not possible to divide unequal from the money that opens the issues of fairness, fairness and the ninth address?

A: Yes, there can be issues in the ninth title if schools provide more resources for men than women. But moreThe last guidance from the Trump administrationIt suggests that schools will not have to consider payments in the ninth title accounts. Lawyers argued on both sides in the case of the House of Representatives that the settlement is not the scene to solve the ninth address problems.

Q: Is this an expired deal?

A: This is an open question. Witkeen can do so as soon as the two or wait to formulate a decision after the weight of the objections. It can give up the whole matter, although it granted initial approval in October. Currently, the conditions of the deal are scheduled to start on July 1.

Q: So, once this is completed, all university sports problems are solved, right?

A: Not a long bullet. Some of the most urgent issues include creating an enforcement entity to ensure that schools remain within the spending instructions and what they do if they are not – a mature area for litigation. There are also collective negotiation issues and whether athletes should be considered employees, the idea that NCAA and schools are not interested in them. NCAA President Charlie Baker was paying Congress to obtain a limited anti -monopoly exemption that would protect the overall sport from another series of lawsuits.

This story was originally shown on Fortune.com

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2025-04-07 15:37:00

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