Judge approves $2.8B settlement, allowing NCAA athletes to get paid

A federal judge has officially greenlit a landmark $2.8 billion antitrust settlement, clearing the way for NCAA schools to directly pay athletes for their name, image and likeness (NIL) starting July 1.

The decision by Judge Claudia Wilken ends three long-running lawsuits and authorizes schools to allocate $20–$23 million annually for athlete compensation. The NIL payments are capped at 22% of the revenue of certain Power Five conference schools.

The settlement also establishes a damages pool for athletes from 2016 to 2024 who were unable to earn NIL income.

It also introduces roster limits in place of scholarship caps, potentially opening up over 115,000 new scholarships, per Judge Wilken.

However, the additional scholarships may raise concerns about walk-ons and future recruits.

For now, a new oversight body, the College Sports Commission, will enforce the new rules.