Report: NCAA in 'deep discussions' to settle NIL antitrust case, share revenue with athletes

According to ESPN’s Dan Murphy and Pete Thamel, there are “deep discussions” regarding a legal settlement that would give NCAA athletes revenue sharing. This is off the backs of a NIL antitrust class action lawsuit against the NCAA in Washington DC.

“The leaders of college sports are involved in “deep discussions” to reach a legal settlement that would likely lay out the framework for sharing revenue with athletes in a future NCAA business model, sources told ESPN,” Murphy and Thamel said.

As ESPN explains in the report, the NCAA going up against the House, saying they are breaking the law by potentially placing restrictions on how much money student-athletes earn from NIL. The case is scheduled to go to court in January 2025 but a settlement could change things.

Otherwise, the NCAA and conferences could be facing $4 billion in damages — something ESPN says has made them willing to speed up the process of settling the case. The deal is not close to being completed but the revenue sharing model could be presented shortly.

“While sources stressed that no deal is imminent, details about what a multi-billion-dollar settlement could look like are expected to be shared with campuses in the near future,” the ESPN report read. “There are myriad variables to get to the finish line and still some obstacles and objections at the campus level, but sources indicate that progress has ramped up in recent weeks.”

Details are still be sorted but ESPN says the top-end revenue share number could be around $20 million per school. The schools would then choose exactly how much to give their athletes, having the opportunity to lower the number if they would like. However, they would not be able to go over.

Jim Harbaugh, formerly of Michigan but now with the Los Angeles Chargers, has arguably been the biggest promoter of student-athletes getting a piece of the pie. During the Wolverines’ national championship run, he discussed the topic on multiple different occasions.

“The billions that are being generated they’re not getting much of,” Harbaugh said. “Very small percentage. They’re getting the same I got: a scholarship for books and tuition lets us do the right thing here. Who has that voice? I don’t know that. Who is the voice for the student-athletes? You got the organizations that are really fighting for their share, their piece and share. I would say this I mean, I’ll say it this: anybody that’s profiting off of the student-athletes right now, myself included, coaches, somewhere between five and 10%.

“Take five to 10% less. Goes for any administrator, any coach, any conference, any university, NCAA, five to 10%, less than maybe a 10% tax from the television stations into one pot. That’s a start … I don’t know if people know this but I’ve been told … TV contracts are going up another 17% next year.”