Former NCAA athletes can now file claims in $2.8 billion House settlement

Former college athletes can now begin filing claims for their piece of the $2.8 billion the NCAA is set to pay in back damages as part of the House v. NCAA settlement agreement. The payday is for the thousands of athletes who were not allowed to capitalize on NIL, participate in revenue sharing or profit from video games.

Judge Claudia Wilken preliminarily approved the landscape-shifting House v. NCAA settlement last week. The settlement paves a new college sports landscape with new roster limits and revenue sharing. But for former athletes who missed on financial opportunities, it’s the chance to earn a share of a market that wasn’t accessible during their careers.

As part of athletes submitting back damage claims, collegeathletecompensation.com has launched for athletes. Those eligible at any point for competition from June 15, 2016, through Sept. 15, 2024 can apply. The claim period will also close on Jan. 31.

The first back-damage payment is due May 15, 2025, or within 45 days of the settlement’s finalization. According to the long-form settlement agreement, the average damages award for a football or men’s basketball player at a Power Five conference school will be approximately $135,000.

Full back damages breakdown

Majority of settlement will go to P5 football, basketball

The NCAA is responsible for paying the $2.776 billion in back damages over the next decade, roughly $277 million annually. Roughly 60% will come from a reduction in distribution to institutions. The NCAA is tasked with closing the other 40%, which will come through reducing operating expenses.

For some of the top athletes in recent memory, they will make millions. Athletes are being broken up into four different classes, including a settlement declaratory and injunctive relief class that includes athletes who compete on, competed on, or will compete on a Division I team any time between June 15, 2020, over the next 10 years.

The $1.976 billion for the NIL damages is being allocated into three categories: broadcast NIL, video game NIL and lost NIL opportunities. Dr. Daniel Rascher – a sports economics and finance, business professor at the University of San Fransisco – estimated the damages for each category. According to documents, $1.815 billion will go to broadcast NIL, $71.5 million set aside for video game NIL and $89.5 million for lost NIL opportunities.

According to previously submitted documents, 95% of the additional compensation net settlement fund will be allocated to the Power Five football and men’s basketball portion with a distributed ratio of 75/15/5.

Opening up $2.8 billion in back damage claims is a historic moment in the NCAA and college sports’ history. It’s also just the next step in the House v. NCAA settlement gaining final approval.

The motion for final approval is on March 3, 2025. The final approval hearing is scheduled for April 7, 2025, and will be held remotely and in person. Schools are expected to begin sharing $22 million in revenue with athletes July 1, 2025.