The NCAA Board of Governors, along with every Power Five conference, has agreed to a $2.8 billion settlement in the landmark House v. NCAA case. This agreement, announced May 23 night, marks the end of the NCAA’s long-standing amateurism model and paves the way for college athletes to receive compensation through a revenue-sharing model starting as soon as Fall 2025.

“The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come,” the NCAA and Power Five leaders said in a joint statement. “This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students.”

The $2.8 billion settlement in House v. NCAA addresses past damages and sets the stage for future revenue sharing with athletes. Notably, the settlement will compensate past athletes for restrictions on earning from their name, image, and likeness (NIL) and establish a revenue-sharing model benefiting thousands of current and future collegiate athletes.

Jeffrey Kessler, the lead attorney for the plaintiffs, told CBS Sports, “For the first time in history, we will now have a fair and just economic system for college athletes. I could not be more delighted. But no celebrations until the system is in place.”

Under the agreement, the NCAA will pay $277 million annually over the next 10 years, funded by reducing its revenue distributions to Division I schools. This decision averts a potential $4.2 billion liability if the case had gone to trial, with even higher risks of up to $20 billion in back damages tied to antitrust lawsuits that could have bankrupted the NCAA and its conferences, The Daily Mail reported.

The NCAA is responsible for 40 percent of the settlement, with the remaining 60 percent distributed among the 32 Division I conferences. The Power Five conferences—ACC, Big Ten, Big 12, Pac-12, and SEC—will cover 24 percent of the total damages. Other conferences will share the remaining financial settlement.

“The most important part about the settlement… is it creates some clarity and some visibility on a whole bunch of issues that have sort of been roiling everybody for a while,” NCAA President Charlie Baker said in a statement. “The other thing it does is create predictability and stability for schools. It creates a tremendous opportunity for student-athletes.”

However, not everyone supports the settlement. Notre Dame President Rev. John I. Jenkins called for Congressional intervention to maintain the traditional student-athlete model and prevent athletes from becoming employees.

“The settlement, though undesirable in many respects and promising only temporary stability, is necessary to avoid what would be the bankruptcy of college athletics,” Jenkins said. He urged Congress to pass legislation that protects student-athletes and ensures competitive equity.

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