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Friday’s order is a major milestone in the long push to remove outdated amateurism rules from major college sports.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.
CLEVELAND — Guardians outfielder Lane Thomas left during the sixth inning of Friday night’s game against the Detroit Tigers due to mild plantar fascia symptoms with his right foot.
Thomas missed 11 games in late May and early June because of plantar fasciitis in his right foot. He is batting .160 this season and .197 (13-for-66) since coming off the injured list on June 9. He does have four homers in his past 10 games.
“We think he’s good. The plantar fasciitis flared up a little bit again and I just didn’t like the way he looked running around the outfield. So rather than take a chance, I got him out of there,” manager Stephen Vogt said after the 2-1 loss to the Tigers.
Thomas also missed five weeks due to a right wrist bone bruise after getting hit by a pitch during the April 8 home opener against the Chicago White Sox.
The Orioles received another boost as Tyler O’Neill came off the injured list with a single and a walk.
“I think they gave us two of the three runs,” said Orioles interim manager Tony Mansolino, referring to O’Neill scoring on Cedric Mullins‘ two-run homer off Spencer Strider.
“Those are two really good players,” Mansolino said. “We’re still short. We’re still missing Adley [Rutschman], but a lot of credit to the guys. They went out there and put up three runs against probably one of the great pitchers in the game.”
Rutschman, Baltimore’s primary catcher, has been out since June 20 with an oblique strain.
Westburg has tried to play through his sprained left index finger. He left a game at the New York Yankees on June 21 before returning four days later against Texas and then having to leave a game after aggravating the injury on June 27.
“Is he 100%? Probably not,” Mansolino said before the game. “But I think he’s probably close.”
Close was good enough. When asked how he feels after his three-hit game, Westburg said, “Pretty good.”
“I’m willing to play through whatever I have,” Westburg said. “It just was at a point where I wasn’t able to swing a bat. As soon as I’m able and can, I want to be on the field as much as they’ll let me.”
O’Neill was the Orioles’ designated hitter in his return from a left shoulder impingement. He was placed on the injured list for the second time this year on May 16 after missing time earlier in the season with neck inflammation.
The contributions from Westburg and O’Neill, who combined to reach base five times, helped support Charlie Morton, who allowed six hits and two runs in 5⅓ innings in his return to Atlanta, where he pitched the past four seasons. Morton also began his career with the Braves.
Morton (5-7) improved to 5-0 in 10 appearances, including seven starts, since May 10.
“I spent basically half my career here,” Morton said. “Being drafted here, I spent seven years in the system, went to the big leagues, made my debut, got to play for Bobby Cox, got to play with some of the pillars of this organization and … come back and win a World Series here. Yeah, it’s a special place for me.”
Jesse joined ESPN Chicago in September 2009 and covers MLB for ESPN.com.
CHICAGO — Fireworks in Chicago began early on Independence Day as the Cubs set a franchise record for a single game, hitting eight home runs on Friday, including three from first baseman Michael Busch in a rout of the St. Louis Cardinals.
“Especially to do it at Wrigley Field,” Busch said after the 11-3 win. “It’s really cool. I think that was my first three-homer game, ever. That’s one game I’ll never forget.”
Busch, 27, took Cardinals starter Miles Mikolas deep in the second and third innings then set a career mark with his third home run in the seventh off reliever John King. It was the first time a Cubs player hit three home runs in a game since Rafael Ortega on Aug. 1, 2021.
Busch wasn’t the only Cub to hit multiple home runs as Pete Crow-Armstrong hit two after making a diving catch in the first inning. Both Busch and Crow-Armstrong went 4-for-4 on the day, driving in seven of the team’s 11 runs. Busch drove in five.
The Cubs have been near the top of the league in most offensive rankings since early in the season as they extended their lead on the Cardinals to 6.5 games.
“It’s really easy to appreciate what we’re doing right now,” Crow-Armstrong said. “It’s also easy to just keep it going and not let that be something that we are dwelling on. It’s the best offense I’ve ever been a part of.”
Also homering for the Cubs on their record-setting day was designated hitter Seiya Suzuki, catcher Carson Kelly and shortstop Dansby Swanson. Manager Craig Counsell was asked to put the day in perspective considering the lengthy history of the franchise. It came a day after they beat the Cleveland Guardians 1-0.
“It’s the sport,” Counsell said with a smile. “It took us 10 innings to score one run yesterday. That’s what’s crazy about it. That’s why you turn the page every single day. We had a really good day, today.”
Mikolas set a Cardinals franchise record, giving up six of the eight home runs — all of which came in the first three innings. The Cardinals did break a scoreless streak on offense extending back to last Sunday when second baseman Brendan Donovan homered in the fourth inning. St. Louis scored two more times in the ninth off Cubs infielder Jon Berti, but by then the game was in hand.
Busch is the third Cubs player with a three-home run game against the Cardinals. In an odd twist, all three did it on Independence Day: Moises Alou on July 4, 2003, and Hank Leiber on July 4, 1939, according to ESPN Research.