Schools are now permitted to pay college athletes directly due to a recent $2.8 billion legal settlement approved by Judge Claudia Wilken. This settlement concludes three federal antitrust lawsuits which challenged NCAA restrictions on athletes' earning potential. Starting July 1, schools need to establish the necessary infrastructure to comply with new payment rules. Over the next decade, the NCAA will compensate athletes who participated in college sports from 2016 onward. Each school can initially pay athletes an estimated $20.5 million annually, increasing annually over ten years alongside existing scholarships and benefits.
Starting Tuesday, schools are now free to begin paying their athletes directly, marking the dawn of a new era in college sports brought about by a multibillion-dollar legal settlement.
The NCAA will pay nearly $2.8 billion in back damages over the next 10 years to athletes who competed in college at any time from 2016 through present day.
The annual cap is expected to start at roughly $20.5 million per school in 2025-26 and increase every year during the decade-long deal.
This new settlement ends three separate federal antitrust lawsuits, all of which claimed the NCAA was illegally limiting the earning power of college athletes.
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