(Reuters) — The National Collegiate Athletics Association has agreed to allow member schools to share revenue with athletes directly and will pay nearly $2.8 billion in past damages in a settlement resolving claims from players suing over their athletic service.
The NCAA and two plaintiffs law firms that led the class-action lawsuits in U.S. court disclosed the framework of the landmark settlement on Thursday, after the collegiate athletics governing body and member conferences approved the accord.
The settlement resolves three lawsuits that alleged the NCAA violated antitrust law by restricting the compensation and benefits to students for their athletic service. The NCAA has denied any wrongdoing.
Under the terms of the deal, subject to a judge’s approval, the NCAA would eliminate certain rules that barred schools from making direct payments to athletes. Schools also will be allowed to share revenue with athletes through new payments and benefits. The plaintiffs attorneys estimated the value at more than $20 billion over 10 years.
Jeffrey Kessler, a lead attorney for the athletes, predicted a “new world” for college players after the settlement. Attorney Steve Berman, who co-led the cases with Mr. Kessler, called the deal “revolutionary.”
The NCAA and a group of its conferences in a statement called the settlement “a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students.”
