Historic $2.8 Billion Settlement Transforms NCAA Compensation for Athletes

A U.S. judge approved a $2.8 billion settlement allowing NCAA schools to compensate student athletes for the use of their names, images, and likenesses. The agreement resolves litigation claiming NCAA compensation rules violated antitrust law. This landmark settlement marks a new era in college sports compensation.


Devdiscourse News Desk | Updated: 07-06-2025 08:32 IST | Created: 07-06-2025 08:32 IST
Historic $2.8 Billion Settlement Transforms NCAA Compensation for Athletes
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A landmark $2.8 billion settlement with the National Collegiate Athletic Association (NCAA) has received final approval, ushering in a new era of compensation for student athletes. U.S. District Judge Claudia Wilken's ruling allows, for the first time, schools to pay athletes for commercial use of their names, images, and likenesses.

The settlement resolves long-standing litigation, marking a significant milestone in college sports. "Despite some compromises, the deal will bring extraordinary relief for settlement members," Judge Wilken declared, noting unprecedented levels and types of compensation for student-athletes. Lead plaintiff attorneys Steve Berman and Jeffrey Kessler heralded this decision as a "historic day for college sports."

NCAA President Charlie Baker expressed support for the ruling, emphasizing enhanced scholarship opportunities and financial benefits for athletes. Although the NCAA denied wrongdoing, objectors can appeal to the 9th U.S. Circuit Court. The settlement resolves lawsuits claiming NCAA's no-pay rules violated U.S. antitrust law, allowing schools to compensate athletes from commercial revenue.

(With inputs from agencies.)

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