NCAA Settlement: How College Sports Will Change Forever

The NCAA has settled three lawsuits, including House vs. NCAA, and agreed to pay a nearly $2.8 billion settlement to athletes from 2016 to 2021 that covers back damages for the athletes who were unable to earn money from their name, image, and likeness. This settlement is set to change college sports as we know them forever.

The five power conferences, including the Big 12 and Pac-12, agreed to terms of the settlement on Thursday. If the NCAA had lost the case, damages would have been $20 billion, potentially leading to the NCAA filing for bankruptcy. The settlement will be paid over 10 years, with 42% coming from NCAA funds and 58% from a reduction in distribution to its schools.

Under the settlement, schools can directly pay players up to $22 million per year starting in the fall of 2025. This new revenue-sharing model will have a significant impact on athletic departments, including the University of Utah. While there is no requirement for Utah to spend up to $22 million on paying its athletes, money will play a crucial role in recruiting and retaining players.

Athletic directors will need to ramp up fundraising efforts and make cuts in the athletic department to free up money for player payments. There are concerns about the impact on non-revenue sports and the possibility of schools cutting sports, athlete resources, or administrative positions. However, NCAA rules require each institution to sponsor a minimum of 16 varsity sports, so cutting sports may not be a viable solution for schools like Utah.

As the new system is expected to go into effect in fall 2025, there is still much to be worked out in the coming months. Utah declined to comment on the NCAA settlement at this time, but it is clear that significant changes are on the horizon for college athletics.