There are new developments in the ongoing battle between the NCAA and student-athletes who demand fair compensation for their role in increasing revenue at their respective universities. Since the Name, Image, and Likeness Bill passed in June 2021, athletes can finally profit off their revenue. Charles Grantham has been a massive driver in this movement as he has dedicated over twenty years of his career to this movement.
The ongoing case between House v. NCAA includes over 2.8 billion in damages for current and former student-athletes over lack of compensation for NIL on television broadcasts. The defendants include the NCAA, SEC, Big Ten, Big 12, ACC, and Pac-12. Thus far, the defendants have agreed to the settlement terms that would establish a revenue-sharing model for athletes beginning in the fall of 2025. This would simultaneously resolve similar ongoing lawsuits such as Hubbard v. NCAA and Carter v. NCAA.
If approved, this settlement will pave the way for schools to pay athletes directly, crushing notions of amateurism in college athletics. The NCAA would be forced to reshape its budget to account for 41% of the damages and the remaining 59% would be paid by schools across the next decade. In practice, this settlement would mean that freshmen student-athletes would have the choice to opt in or object to the revenue-sharing model. The revenue-sharing cap is still up for debate but it will likely be around 20 million, taking about 22% of the average power conference school’s main revenue streams.
The impact of the proposed revenue-sharing model reveals how heavily universities and the NCAA rely on profiting from their student-athletes. This settlement aims to be a roadmap for college sports leaders and Congress to provide students with fair treatment and opportunity. Although this pending victory is a big one, there is still lots of uncertainty when it comes to anti-trust laws, athletes being established as employees (providing them more benefits and rights), and how universities will handle Title IX since payment distribution will be up to individual institutions.
The battle for just treatment among student-athletes marches on and it is far from over. However, this groundbreaking development is one to celebrate. Without individuals like Charles Grantham who have dedicated their career to improving these conditions, student-athletes would still be denied the basic rights humans all other individuals benefit from. Check out this article to learn more.