A judge in California on Thursday was scheduled to weigh preliminary approval of a $2.78 billion settlement of three antitrust lawsuits against the NCAA and major conferences, the first step of a lengthy process that could lead to college athletes getting a cut of the billions in television revenue that flows to their schools.
Attorneys from both sides were set to appear in front of U.S. District Judge Claudia Wilken in Oakland, California. Wilken could rule as soon Thursday, but it is more likely to be several days.
The NCAA and five power conferences agreed in May to settle House v. NCAA and two similar case cases that challenged compensation rules for college athletes.
The deal calls for the NCAA to foot the bill for nearly $3 billion in damages paid to former and current college athletes who were denied the right to earn money off their name, image and likeness, dating to 2016.
As part of the settlement, the conferences agreed to a revenue-sharing plan that would allow each school to direct about $21 million to athletes, starting as soon as next season — if the settlement receives final approval.
Preliminary approval allows the plaintiffs to begin notifying thousands of former and current college athletes that they are eligible to claim damages or object to the terms. That can start in two weeks.
Objections have already been filed with the court, including one from the plaintiffs in another athlete compensation case in Colorado who declined to be part of the settlement. A group of former Division I female athletes is also challenging the settlement, claiming damages will be unfairly paid mostly to football and men’s basketball players.
Two college athlete advocacy groups that support the organization of players and collective bargaining as part of a new compensation model have taken different approaches to the settlement.
The National College Players’ Association last week called the settlement “unjust” and said it would work to prevent it from being approved. Athletes.org, which says it has nearly 4,000 college athletes as members, said it supports the settlement as an important first step, but would like some of the terms tweaked before it is implemented.
The NCAA and college sports leaders are already working on how to implement the revenue-sharing plan — including bringing in an outside third-party to manage enforcement of some terms. Preliminary approval creates a modicum of certainty, but the work of implementation will still have to be done while waiting for final approval from Wilken.
The soonest that could happen is 150 days after notices go out to members of the class.
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