Judge Approves Settlement Allowing Penn State To Pay Student Athletes
A federal judge granted the final approval of a House v. NCAA settlement permitting schools to directly pay college athletes on Friday.
The settlement establishes a 10-year revenue-sharing model, allowing athletic departments to distribute $20.5 million in NIL revenue to their athletes. The amount is capped for all schools at the moment, but is expected to rise to as much as $30 million in the coming years.
The NCAA, Big Ten, and other power conferences also agreed to pay roughly $2.8 billion to Division I athletes unallowed to sign NIL deals.
Penn State athletes from 2016 to the 2024-25 season are eligible to receive back pay with damages paid out over 10 years. The majority of the money is expected to go to former Penn State football players.
Under the NCAA’s settlement, a system will now track and evaluate all third-party NIL deals for student-athletes valued at $600 or more, ensuring they are for a legitimate business purpose and at fair market value.
Penn State can begin sharing revenue directly with its athletes starting July 1.
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