Federal Judge Approves $2.8B NCAA Athlete Compensation Settlement Amid Appeals

A federal judge approved a $2.8 billion settlement allowing NCAA college athletes, both current and former, to receive compensation from their schools, with payments set to begin as early as July 2025. The settlement, stemming from multiple antitrust lawsuits, permits schools to pay athletes directly with an annual cap of $20.5 million per school, and also addresses damages for athletes who played between 2016 and 2024. However, a group of eight female athletes has filed an appeal challenging the distribution of damages, citing federal gender-equity laws and arguing that the current model disproportionately favors football and men's basketball players. This appeal could delay payments, as funds would be held in escrow until legal proceedings conclude. The settlement also introduces a third-party clearinghouse to regulate Name, Image, and Likeness (NIL) deals, aiming to ensure fairness and prevent circumvention of compensation rules, though its authority remains uncertain. Overall, while the ruling marks a historic shift in college athletics, significant legal and regulatory questions remain, especially concerning Title IX compliance and equitable distribution of funds across sports and genders.