House vs. NCAA lawsuit: Addressing FAQs ahead of Monday’s momentous settlement hearing

The college sports economic revolution which began more than a decade ago with Ed O Bannon s lawsuit over what became known as name image and likeness NIL reaches its guillotine moment Monday in an Oakland courtroom Judge Claudia Wilken of the Northern District of California who ruled on the O Bannon incident will oversee the settlement terms of a class action antitrust lawsuit that has been winding through the courts for five years If approved the House vs NCAA settlement will effectively dismantle the longstanding plan of amateurism and transfer billions of dollars from the schools to the athletes The settlement will provide back pay for former athletes who did not receive NIL compensation and create a revenue-sharing arrangement for current and future athletes It will expand scholarship opportunities create an enforcement mechanism for third-party NIL payments and above all provide clarity for a broken industry Here s what you need to know Who is House The named plaintiff in the development is Grant House a former Arizona State swimmer who took the NCAA to court in But his lawsuit is literally the combination of three cases against the NCAA consolidated into one with the goal of securing financial compensation for past present and future athletes based on their NIL Unlike the NIL system that took effect in the summer of and allows athletes to receive third-party compensation for endorsement and promotional endeavors House creates a direct revenue-sharing relationship between the athletes and their schools Who are the defendants The NCAA and the power conference the ACC Big Ten Big SEC and Pac- are the named defendants The situation was filed before the Pac- lost schools in the summer of but it remains a legal entity and very much involved in the situation How does the settlement work Fearing a loss in court that would have been catastrophic financially the NCAA and the Power Five conference agreed to a deal last spring The damages portion allocates billions in NIL payments to athletes who are no longer eligible while the injunctive portion creates a revenue-sharing model expected to be implemented this summer The settlement also creates more scholarships across dozens of NCAA sports and allows the major conferences to create an enforcement arm for third-party NIL payments How will the damages portion be paid The NCAA plans to pay approximately billion to athletes who competed between - but were barred from receiving compensation for the use of their NIL The amount will be paid over years with the NCAA withholding portions of the annual distributions it makes to the schools and instead sending that cash to the plaintiffs How will the injunctive portion work Approximately percent of each school s annual revenue from ticket sales media rights deals and sponsorships will be set aside for the athletes In - that equates to a salary cap of roughly million Members of the ACC Big Big Ten and SEC are expected to max out If they don t recruiting could suffer Schools in the Group of Five and those that do not play major college football will come in well under the cap In the Power Four approximately percent of the total or million will be pegged for football men s basketball rosters will receive roughly percent the rest will go to athletes in the Olympic sports Does House impact roster sizes Perhaps the the bulk overlooked aspect of the settlement is the expansion of scholarships and reduction in walk-on opportunities Let s explain using football In the past teams were allowed scholarships but could have another or players on the roster as walk-ons Under the House settlement rosters are capped at but every performer could be placed on scholarship if the school chooses Particular sports will experience a drastic reduction in the number of roster spots What does this mean for NIL The settlement is designed to eliminate the so-called fake NIL currently used by collectives to lure transfers and high school recruits i e pay-for-play In theory it will be replaced by the pure form of NIL in which athletes are compensated for endorsement and promotional opportunities Related Articles Mailbag Where Oregon Washington USC fit in football super league Final Four picks Duke and Auburn are the teams to beat Pac- football schedule ideas radical ones to up media rights payout Big in March Madness Loads of units earned but more mouths to feed What s next for Arizona MBB after Sweet loss to Duke first Big season The NCAA has been unable to enforce pure NIL But the House settlement allows the power conferences to construct an oversight body that s independent of the NCAA The CEO is expected to have an investigatory background Deloitte the global auditing and consulting giant will review NIL deals to determine their legitimacy Will the settlement be approved Monday In past cases Wilken has refrained from ruling from the bench However she could signal an intent to approve then render a final decision in a scant weeks Outright rejection of the settlement would surprise several in college sports A slew of objectors have expressed concerns but none of the issues raised are considered substantive to the affair itself The hearing could last the majority of the day and will unfold in a packed courtroom What s next If Wilken approves the settlement the revenue sharing era likely will begin on July That won t end the chaos this is college sports after all It remains unclear whether the settlement will stand up in court to a Title IX challenge because football and men s basketball players will receive the vast majority of revenue It does not account for the various state laws that govern NIL Also college athletes aren t unionized which means the House settlement was not collectively bargained and ultimately might not be enforceable This isn t the end for the college sports revolution by any means But it s a step toward ending the chaos Send suggestions comments and tips confidentiality guaranteed to wilnerhotline bayareanewsgroup com or call - 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