N.C.A.A. Settlement Changes the Future of College Sports

On May 23rd, three class-action antitrust lawsuits left American college sports on unprecedented grounds. The $2.8 billion settlement applies to the Power 5 conferences, affecting a huge amount of collegiate athletes.

Prior to this case, the N.C.A.A. regulated college sports with strict rules over compensation, marketing, and the academic-athletic balance in universities. Prior to the N.I.L. (Name, Image, and Likeness) rules in July of 2021, the N.C.A.A. disproportionately profited off of athletes' popularity and recognition. Since the introduction of N.I.L. rules, collegiate athletes can legally profit off of their name, often ending in brand deals or monetized social media posts. However, the N.C.A.A. has always rejected the idea of directly compensating their athletes. Many athletes have felt they were forced to reject big opportunities due to these rules, yet the N.C.A.A. thinks they are necessary to retaining all athletes' amateur statuses as college students. This discourse between the athletes and the Association laid the foundation to these antitrust lawsuits.

The first federal antitrust lawsuit questioned the Association's refusal to offer athletes N.I.L. deals before they committed to being student-athletes. Notable athletes filed a second antitrust lawsuit, noting deep frustration with the N.C.A.A.'s restrictions. The regulation of athletic compensation in response to the athletes' demanding livelihoods raised the question of exploitation within the organization. And because numerous famous athletes and large universities participated in these lawsuits, mounting pressure stacked on the shoulders of the N.C.A.A.

In order to avoid a larger settlement, the N.C.A.A. and the Power 5 conference agreed to a $2.8 billion settlement. Over a 10-year-period, the Association is expected to pay back former and current athletes from 2016 onward for any lost financial opportunities. Furthermore, conferences and schools now have the ability to pay their athletes. Although the settlement constitutes a big win for athletes, many questions and chances for misuse remain.

If money is now a legitimate factor in collegiate sports, larger schools with higher salaries to offer will dominate recruitment. Big schools gain more money by taking part in a highly profitable power-conference. So, these larger schools actually end up paying back less than smaller schools, proportionately. The settlement does not affect all schools equally, and there remains no regulations about how to handle this issue.

An endless amount of other question persist, as well. For one, the court ruling does not specify any pay cap. Yet again, larger schools that have the ability to give more money to its athletes will likely build teams with stronger players. Athletes will be treated like employees, neglecting the N.C.A.A.'s "amateur" status the Association wanted so badly to protect while also establishing firm power imbalances within college athletic circuits.

This new ability to allocate more money to teams of a university's choice evokes concern over the pre-existing gender mistreatment in college teams. For years, men's teams have received better funding and equipment due to their perceived "marketability". This settlement threatens to deepen the gap between men's and women's sports. For example, universities have the ability to pay their male athletes a higher salary without having the burden to share/compare numbers with female athletes. The ruling does not specify any transparency regulations regarding monetary compensation. Thus, the hierarchy between gendered sports may only worsen.

As the new world of college sports unfolds, it is critical to pay attention to the issues outlined above. Many are thrilled that athletes are now being paid for their efforts, an understandable and well-earned sentiment. However, a Pandora's box of unending issues may have been inadvertently opened at the same time. With minimal checks and balances, this settlement could turn the future of college sports on its head.