The NCAA and its power-five conferences filed a plan to pay out nearly $3 billion to former athletes in a settlement of an antitrust class-action lawsuit.
The proposed deal also paves the way for schools to directly compensate athletes while attempting to regulate payments from boosters.
"NCAA college athletes have waited decades for this moment, and their right to receive the full value of their hard work has finally arrived," said Steve Berman, managing partner and co-founder of the Hagens Berman law firm. "We are incredibly proud to be in the final stages of historic change."
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"College athletes will finally be able to share in the billions of dollars their compelling stories and dynamic performances have generated for their schools, conferences, and the NCAA," the filing said. "This is nothing short of a seismic change to college sports following more than four years of hard-fought victories in this case."
The $2.78 billion would be paid out over a 10-year period. Payouts will be determined based on the sport and length of athletic career, with most football and men's basketball players able to receive nearly $135,000 each.
However, the highest estimated payout is expected to be nearly $2 million, thanks to "Lost NIL Opportunities," according to the law firm.
The deal covers three antitrust cases — including the class-action lawsuit known as House vs. the NCAA — that challenged NCAA compensation rules dating to 2016. The plaintiffs claimed that NCAA rules denied thousands of athletes the opportunity to earn millions of dollars off the use of their names, images and likenesses.
The NCAA lifted its ban on athletes earning money through endorsement and sponsorship deals in 2021.
The agreement does not settle the issue of whether college athletes should be deemed employees, but it does include language that would suggest the deal would be subject to change if "a change in law or circumstances permits collective bargaining."
"This settlement is an important step forward for student-athletes and college sports, but it does not address every challenge," the commissioners of the Atlantic Coast Conference, Big Ten, Big 12, Pac-12, Southeastern Conference and NCAA President Charlie Baker said in a joint statement. "The need for federal legislation to provide solutions remains. If Congress does not act, the progress reached through the settlement could be significantly mitigated by state laws and continued litigation."
The filing still needs to be approved by a judge, but attorneys say they will file a motion for preliminary approval and, if granted, a public website will go up in about two months, where former college athletes can determine how much they are eligible to receive.
The Associated Press contributed to this report.
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