It is hard to follow collegiate sports without seeing news of the “House Settlement” and how it will transform collegiate athletics forever. The crux of the lawsuit is centered around name, image, and likeness (NIL) rights, and concerns over the exploitation of student-athletes.
The full complaint can be found here. https://caselaw.findlaw.com/court/us-dis-crt-n-d-cal/2140891.html
Key Points to the Settlement
When the settlement is approved, it will bring several reforms to college athletics, including:
Direct payments from athletic departments to student-athletes: Schools can share up to a maximum of $20.5 million with their athletes. This compensation can come in the form of scholarships or NIL rights.
Restrictions on third-party NIL agreements: If an NIL deal with an athlete comes from a source outside of the university, then it will be subject to a “Deal Clearinghouse” or Fair-Market Value (FMV) evaluation. If the deal is not deemed to meet FMV standards, then it will be denied. This is going to be a highly complex matter moving forward.
Replacing scholarship limits with roster limits: The old model of college athletics had limits on scholarships that could be offered to athletes. Still, there was no limit on the number of athletes that schools could have on a roster. Athletes who were not on scholarship were called walk-ons. Post-settlement, caps will be put on the number of athletes that can be on a specific roster, and every athlete will be eligible for a scholarship.
How Will the House Settlement Transform Collegiate Athletics?
When the settlement is approved, it will bring several reforms to college athletics, including: