College Sports Revenue Sharing: A Historic Turning Point, But Will It Satisfy All Parties?
In recent years, leaders in college sports have been engaged in deep discussions to establish a framework for sharing revenue with athletes. The case of House v. NCAA is set to go to court in January 2025, and if the plaintiffs win, the NCAA and its schools could be liable for over $4 billion in damages. This has motivated industry leaders to seek a settlement to avoid such a large payout.
Last week, a significant turning point in the discussions occurred in the Dallas area where power conference commissioners, general counsels, NCAA President Charlie Baker, NCAA lawyers, and plaintiffs’ attorneys met. While a deal is not imminent, details of a multibillion-dollar settlement are expected to be shared with campuses soon. Progress has been made in recent weeks, but there are still obstacles and objections at the campus level to overcome.
The settlement is expected to cost billions in back pay for former athletes and would likely lead to the NCAA and conferences agreeing to share more revenue with players going forward. The top-end revenue share per school is estimated to be around $20 million annually, although this figure has not been finalized yet.
The idea of revenue sharing stemmed from the SEC-Big Ten joint advisory group announced by both conferences in February. This group includes university presidents/chancellors and athletic directors and has played a significant role in the discussions around revenue sharing in college sports.
