A proposal from the NCAA and the so-call “Power Five” college athletic conferences representing their member schools reached a landmark settlement that will create a $2.8 billion damages pool for previous college athletes and change the way colleges can compensate students athletes, USA Today reports.
Among the largest schools known as Division I, athletics generated nearly $16 billion in revenue in 2019, not including broadcast rights fees that go through the conferences. The athletes traditionally got barely more than tuition and living expenses. The NCAA allowed athletes to sign name, image and licensing (NIL) agreements with companies, allowing them to run business independent of their college athletics. Now, though, a rush will be on to create “salary caps” and alumni trusts to fund payroll.