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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 that was formally approved Friday.

Judge Claudia Wilken approved the deal between the NCAA, its most powerful conferences and lawyers representing all Division I athletes. The House v. NCAA settlement ends three separate federal antitrust lawsuits, all of which claimed the NCAA was illegally limiting the earning power of college athletes.

Wilken’s long-awaited decision comes with less than a month remaining before schools are planning to start cutting checks to athletes on July 1. Both sides presented their arguments for approving the settlement at a hearing in early April. While college sports leaders have been making tentative plans for a major shift in how they do business, the tight turnaround time means schools and conferences will have to hustle to establish the infrastructure needed to enforce their new rules.

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. Moving forward, each school can pay its athletes up to a certain limit. 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. These new payments are in addition to scholarships and other benefits the athletes already receive.

Friday’s order is a major milestone in the long push to remove outdated amateurism rules from major college sports. Since 2021, college athletes have been allowed to make money from third parties via name, image and likeness deals. Boosters quickly organized groups called collectives that used NIL money as de facto salaries for their teams, in some cases paying millions of dollars mostly to top-rated basketball and football players. Now, that money will come straight from the athletic departments.

“It’s historic,” former college basketball star Sedona Prince, one of the co-lead plaintiffs in one of the lawsuits, told ESPN. “It seemed like this crazy, outlandish idea at the time of what college athletics could and should be like. It was a difficult process at times … but it’s going to change millions of lives for the better.”

In June 2021, the U.S. Supreme Court unanimously ruled against the NCAA in a case that made it clear that college athletics should be treated less like an education-based endeavor and more like a lucrative entertainment industry. The decision unleashed a flood of fresh legal challenges to NCAA rules that have led to unprecedented turmoil.

The settlement approved this week will not put an end to the barrage of legal challenges. Questions about whether athletes should be considered employees and the current rules that dictate how long an athlete can play college sports remain unanswered.

However, NCAA president Charlie Baker and others believe the deal will help schools regain control and tamp down the skyrocketing, largely unregulated market for paying college players through third parties.

The NCAA and its schools are hoping that federal lawmakers will now intercede to help solve the industry’s remaining legal problems. Industry leaders have asked Congress to write a law that would prevent athletes from becoming employees and provide the NCAA with an antitrust exemption to create some caps on player pay and transfers.

Salary caps and free agency restrictions in professional sports are legal because they are negotiated as part of a collective bargaining agreement with a union. College sports leaders say many schools won’t be able to afford to fund their teams if players are deemed to be employees and allowed to unionize.

The settlement gives the schools power to create new rules designed to limit the influence of boosters and collectives. Starting this summer, any endorsement deal between a booster and an athlete will be vetted to ensure it is for a “valid business purpose” rather than a recruiting incentive.

Many sources in the college sports industry have doubts about whether the limit on booster spending — aimed at protecting competitive balance — will be effective in slowing the rapid increase in money flowing to athletes at the NCAA’s richest schools. Some believe the rule will spur new lawsuits.

The power conferences are launching a new enforcement organization to monitor payments that come from schools and boosters, a duty that was previously one of the main functions of the NCAA’s national office. College sports officials hope the new organization will have a more streamlined and effective approach to investigating potential violations and punishing those who break the rules.

The new enforcement organization, called the College Sports Commission, on Friday night announced the hiring of MLB executive Bryan Seeley as its CEO. Seeley’s job is described as having to “build out the organization’s investigative and enforcement teams and oversee all of its ongoing operations and stakeholder relationships.”

According to the news release announcing his hire, “Seeley and his team will also be responsible for enforcement of the new rules around revenue sharing, student-athlete third-party name image and likeness (NIL) deals, and roster limits.”

Sources told ESPN’s Pete Thamel and Jeff Passan that Seeley has been the target for weeks, with the formalization of the settlement triggering his hire.

“This is new terrain for everyone,” Baker wrote in an open letter Friday night. “Given the defendant conferences’ new ownership of complicated pieces of rulemaking and enforcement, there will be a transition period and certainly bumps in the road. Opportunities to drive transformative change don’t come often to organizations like ours. It’s important we make the most of this one.”

Wilken refused to approve the settlement in early April because several athletes objected to a term of the deal that allows the NCAA to set a limit for how many players each team can carry on its roster. The limits would have potentially resulted in thousands of athletes losing their place on their team. Lawyers for both sides agreed in late April to alter the deal so that no athletes would lose their opportunity to play college sports as a direct result of the new roster limits.

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Hamlin undeterred by ruling siding with NASCAR

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Hamlin undeterred by ruling siding with NASCAR

BROOKLYN, Mich. — Denny Hamlin is unfazed that a three-judge federal appellate panel vacated an injunction that required NASCAR to recognize 23XI, which he owns with Michael Jordan, and Front Row as chartered teams as part of an antitrust lawsuit.

“That’s just such a small part of the entire litigation,” Hamlin said Saturday, a day ahead of the FireKeepers Casino 400. “I’m not deterred at all. We’re in good shape.”

Hamlin said Jordan feels the same way.

“He just remains very confident, just like I do,” Hamiln said.

NASCAR has not commented on the latest ruling.

23XI and Front Row sued NASCAR late last year after refusing to sign new agreements on charter renewals. They asked for a temporary injunction that would recognize them as chartered teams for this season, but the Fourth Circuit Court of Appeals in Richmond, Virginia, on Thursday ruled in NASCAR’s favor.

“We’re looking at all options right now,” Hamlin said.

The teams, each winless this year, said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick’s contract would have made him a free agent if the team could not guarantee him a charter-protected car.

Hamlin insisted he’s not worried about losing drivers because of the uncertainty.

“I’m not focused on that particularly right this second,” he said.

Reddick, who was last year’s regular-season champion and competed for the Cup title in November, enters the race Sunday at Michigan ranked sixth in the Cup Series standings.

The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates.

The six teams may have to compete as “open” cars and would have to qualify on speed each week to make the race and would receive a fraction of the money.

Without a charter, Hamlin said it would cost the teams “tens of millions,” to run three cars.

“We’re committed to run this season open if we have to,” he said. “We’re going to race and fulfill all of our commitments no matter what. We’re here to race. Our team is going to be here for the long haul and we’re confident of that.”

The antitrust case isn’t scheduled to be heard until December.

NASCAR has not said what it would do with the six charters held by the two organizations if they are returned to the sanctioning body. There are 36 chartered cars for a 40-car field.

“We feel like facts were on our side,” Hamlin said. “I think if you listen to the judges, even they mentioned that we might be in pretty good shape.”

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Appellate judges rule for NASCAR in charter fight

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Appellate judges rule for NASCAR in charter fight

CHARLOTTE, N.C. — A three-judge federal appellate panel ruled Thursday in favor of NASCAR in the antitrust lawsuit filed by two teams, one owned by Michael Jordan, and vacated an injunction that required 23XI and Front Row be recognized as chartered teams as their case snakes through the legal system.

Both race teams sued NASCAR late last year after refusing to sign new agreements on charter renewals.

The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates. 23XI, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, joined Front Row in suing NASCAR after 13 other organizations signed the renewals and those two organizations refused.

“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,” said Jeffery Kessler, attorney for 23XI and Front Row. “This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for Dec. 1.

“We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”

The two teams sued and asked for a temporary injunction that would recognize them as chartered teams for this season. The antitrust case isn’t scheduled to be heard until December.

23XI and Front Row have 14 days to appeal to the full court, and the injunction has no bearings on the merits of the antitrust case.

The earliest NASCAR can treat the teams as unchartered — a charter guarantees their organizations a starting spot each week and prize money — is one week after the deadline to appeal, provided there is no pending appeal.

NASCAR has not said what it would do with the six charters held by the two organizations if they are returned to the sanctioning body. There are only 36 chartered cars for a 40-car field. If the teams do not appeal, the six entries would have to compete as “open” cars — which means they’d have to qualify on speed each week to make the race and they would receive a fraction of the money.

The teams said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick‘s contract would have made him a free agent if the team could not guarantee him a charter-protected car.

It’s not clear what would happen to Reddick’s contract. Last year’s regular-season champion goes to Michigan this weekend ranked sixth in the Cup Series standings. Both organizations are still seeking a win this season — Hamlin’s three victories are with Joe Gibbs Racing, the team he drives for.

The original judge ruled that NASCAR’s charter agreement likely violated antitrust law in granting the injunction. But when they heard arguments last month, the three judges at the the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, indicated they were skeptical of that decision.

The judges said in Thursday’s ruling they were not aware of any case that supports the lower court’s theory of antitrust law, so they vacated the injunction.

“In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory,” the court said. “And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.”

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NASCAR drivers set for $1M In-season Challenge

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NASCAR drivers set for M In-season Challenge

LEBANON, Tenn. — Bubba Wallace sees NASCAR having all the momentum possible right now with different media partners.

Perfect timing then for NASCAR’s “In-season Challenge” to debut, right?

Well, Wallace forgot that was about to debut.

“For me to forget about it and remember how exciting it was when they announced, I think it’s going to be big for the fans to tune in and and give them a little bit more … you’re just invested more,” Wallace said.

Kyle Larson just tried his latest attempt at “the Double” of the Indianapolis 500 and the Coca-Cola 600. Count him among those who didn’t realize NASCAR’s new in-season competition had its field of 32 set after Sunday night’s Cup Series race at the Nashville Superspeedway.

“I just really haven’t seen anything promoted about it, so I think it’s easy to forget about it,” Larson said.

NASCAR announced this new in-season competition in May 2024, so drivers can be forgiven for being focused on the second half of the season.

The format is simple: 32 drivers race for seeding over the next three races starting at Michigan on Sunday and concluding at Pocono on June 22. Drivers are seeded by their best finish for the five-race competition starting at Atlanta.

Then it goes to single elimination with the field cut to 16 at Chicago, eight at Sonoma, four at Dover and the final two at Indianapolis Motor Speedway. The winner gets $1 million, and that does get drivers’ attention as part of the new media rights deal that includes TNT.

“It’s going to be something fun that you pay attention to, and there’s good money on the line,” said Larson, the 2021 Cup Series champ. “So, you’ve just got to be really consistent throughout.”

Chris Buescher of RFK Racing is among those who didn’t realize this challenge is starting. He needs race victories after losing points for a penalty at Kansas in May. The prize is nice.

“That’s real money,” Buescher said. “But I don’t want that to change how we go to the race track. We need to figure out how to win races. There’s a lot more than that on the line at the end of the year.”

Three-time Cup Series champ Joey Logano compared this event’s prize to the money up for grabs in the All-Star Race and this new competition like a stage win.

“This is a little longer thing, but it’s a race within the race,” Logano said. “So you’re not willing to give up a lot to do that, right?”

Denny Hamlin was excited when the In-season Challenge was first announced. Then he saw the courses for this competition, and his enthusiasm dimmed with the number of road courses included.

“Truthfully, we’re going to get pretty lucky or have such a good draw that just things kind of work out,” Hamlin said. “I wish it was more conventional ovals, but I think that’s just the way the schedule works out. And it’s unfortunately not probably my prime part of the season.”

Brad Keselowski and his No. 6 Ford for RFK Racing went into Nashville at 32 – right on the line to be included in that chase for seeding. He hadn’t given the competition much thought focused on this season. But he thinks it will be fun once it starts.

“It’s good for the sport, good for our fans and it’s a competition,” Keselowski said. “If there’s competition, we want to win it. But that said, I think our heads down on one week at a time, in some ways one day at a time. … And it’s hard to look further ahead than that.”

Team Penske all set for the playoffs

With Ryan Blaney‘s first victory of the season at Nashville Superspeedway, Team Penske now has its three drivers qualified for the NASCAR Cup playoffs even with Nashville the first race of the second half of this year.

Blaney, who hadn’t won since November, joined Austin Cindric, who won at Talladega, and three-time Cup Series champ Joey Logano, a winner at Texas. Josh Berry, whose Wood Brothers Racing team has a relationship with Team Penske, also won at Las Vegas.

Michael Nelson, president of Team Penske’s NASCAR operations, said it was nice to have that pressure off all the teams.

“It’s obviously pretty awesome to have a little bit of that pressure off for the guys,” Nelson said. “And again … it gives you a chance to go out and take some chances here and there and try to rack up a bunch of wins. So now we’re grateful to be at this point with our cars this time of year.”

Careful there

Hocevar Carson Hocevar matched his career-best finish driving from 26th to second at Nashville. The 22-year-old driver in his second Cup Series season with Spire Motorsports ticked off Ricky Stenhouse Jr. with his aggressive style.

Hocevar clipped Stenhouse on Lap 106 of 300, sending him into the wall and out of the race. Stenhouse said Hocevar was overly aggressive and will talk to the young driver. Just not after the race.

“No,” Stenhouse said, “that costs too much money.”

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