Judge preliminarily approves House v. NCAA settlement

Judge Claudia Wilken preliminarily approved the landscape-shifting House v. NCAA settlement in the U.S. District Court for the Northern District of California on Monday. It is a historic moment in college sports and a significant step in a lengthy approval process.

If the House v. NCAA settlement is ultimately approved, some $2.75 billion in damages will be paid to thousands of college athletes over 10 years. And schools, at their discretion, will be able to share $21-22 million annually with athletes. The figure equates to 22% of the average Power Five school’s revenue. It will rise 4% each year.

As part of the House settlement, scholarship increases are coming across sports, as are new roster limits, if the agreement is certified. The proposed rosters include football (105), men’s and women’s basketball (15), baseball (34), men’s and women’s soccer (28) softball (25) and volleyball (18).

The news comes after attorneys in the House v. NCAA lawsuit submitted revised settlement documents focused on boosters and NIL collectives less than two weeks ago. At a preliminary approval hearing on Sept. 5, Wilken called for attorneys to “go back to the drawing board” because of concerns around third-party NIL restrictions. Specifically, she was concerned about how the settlement would limit opportunities for athletes moving forward.

If Wilken did not grant preliminary approval or attorneys failed to make the necessary changes in the settlement, a trial date could have been set. Plaintiffs’ attorney Jeffrey Kessler told On3 after the Sept. 5 preliminary approval hearing that he was “100% serious” about going to trial if the NCAA would not agree to changes around boosters and NIL collectives.

Wilken only signed, dated and updated the timelines. She did not add an opinion to the preliminary approval.

“We are thrilled by Judge Wilken’s decision to give preliminary approval to the landmark settlement that will help bring stability and sustainability to college athletics while delivering increased benefits to student-athletes for years to come,” NCAA president Charlie Baker said in a statement. “Today’s progress is a significant step in writing the next chapter for the future of college sports. We look forward to working with all of Division I, and especially student-athlete leadership groups to chart the path forward and drive historic change.”

What are next steps in House v. NCAA?

Wilken’s decision on Monday is just one step towards the ultimate goal of final approval. The notice campaign and claims period will begin on Oct. 18, which is when current and former athletes will receive the terms and claims procedures. 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.

The settlement also allows for objectors. Some have already come forward, including former and current rowers at Yale, Oregon State, George Washington and Texas. Another group of athletes filed an objection last week, led by attorney Michael Hausfeld, who was the lead lawyer for former UCLA men’s basketball player Ed O’Bannon in the antitrust case win against the NCAA.

The deadline for objections is scheduled for Jan. 31, 2025.

The claim period will also close on Jan. 31. 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.

While the House v. NCAA settlement creates a new landscape, it also produces plenty of questions. Where does Title IX fit in? How will the annual opt-out process work? And will the new enforcement mechanism really work?

The settlement is moving forward, signaling an arrival for the 2025-26 academic year.