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Topline
On Monday, the National Collegiate Athletic Association (NCAA) Division I Board of Directors made a significant move by approving new regulations that would enable direct payments to Division I athletes from their respective schools. This development, reported by various media outlets, signifies a notable shift in NCAA policies, although it still awaits final approval from a district court judge to take full effect.
A ruling on this matter is anticipated soon from the judiciary. (AP Photo/Eric Gay, File)
Key Facts
According to sources, the Board has decided to eliminate several existing rules related to athlete compensation and unpaid amateur status. This adjustment is closely tied to a forthcoming decision from California-based District Judge Claudia Wilken, who is expected to rule shortly on a comprehensive settlement involving three antitrust lawsuits that could facilitate the direct payment of athletes.
Reports indicate that the NCAA plans to discard a total of 153 rules and bylaws in conjunction with the proposed changes. These alterations are not only limited to payment structures but also encompass roster limits and new requirements for athletes concerning the disclosure of name, image, and likeness (NIL) contracts when such agreements exceed $600.
Big Number
The NCAA generated approximately $1.3 billion in revenue during the 2022-2023 fiscal year, with half of that amount being redistributed to schools competing at the Division I level.
Key Background
The settlement that Judge Wilken is set to review involves a proposed $2.8 billion in damages owed to past and present college athletes. It would allow Division I schools to provide a capped level of compensation to athletes while also giving them the leeway to negotiate NIL agreements during the recruitment phase. The NCAA’s ongoing resistance to providing direct compensation has led to various lawsuits filed by student-athletes over the past few years, with three lawsuits specifically prompting the upcoming settlement.
Further Reading
For more insights on this evolving situation, see: NCAA Proposes Radical Shift In College Sports In Which Athletes Can Be Paid—Here’s How It Could Work (Forbes)
NCAA votes to allow schools to pay athletes — as long as a judge approves (The Washington Post)
Source
www.forbes.com