Judge Halts $2.78 Billion NCAA Antitrust Settlement, Citing NIL Concerns
A proposed $2.78 billion settlement in the House v. NCAA antitrust case has been put on hold after U.S. District Judge Claudia Wilken raised concerns over specific terms of the agreement during a court session in Oakland, California.
Judge Wilken expressed reservations about how the settlement might impact name, image, and likeness (NIL) payments to student-athletes, particularly provisions that could limit future opportunities. She requested a revision to the settlement be submitted within three weeks, stating, “I’m concerned the settlement will limit those opportunities for people moving forward.”
One point of contention was whether the deal might force the NCAA to pay athletes directly. NCAA attorney Rakesh Kilaru reaffirmed that “pay-for-play” remains against NCAA rules, but Wilken highlighted potential issues with future revenue-sharing restrictions, which are set to last for 10 years.
Wilken noted the role of boosters, who can currently provide NIL payments, saying, “The schools may or may not be able to pay those benefits, but clearly, the collectives or the boosters do have those resources and are willing to pay them.”
After the hearing, plaintiffs’ attorney Jeffrey Kessler stated, “We are perfectly fine with those changes. It’s now up to the NCAA. If the deal falls apart, we go back to trial.”
The settlement, if approved, would see billions in compensation distributed to current and former NCAA athletes. However, with the judge’s concerns, the case remains unresolved for now.
