Sources: NCAA in talks to settle NIL antitrust case
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Pete Thamel
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Dan Murphy
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Dan Murphy
ESPN Staff Writer
- Covers the Big Ten
- Joined ESPN.com in 2014
- Graduate of the University of Notre Dame
The leaders of college sports are involved in “deep discussions” to reach a legal settlement that would likely lay out the framework for sharing revenue with athletes in a future NCAA business model, sources told ESPN.
The NCAA and its power conferences are defendants in an antitrust class action lawsuit, House v. NCAA, which argues that the association is breaking federal law by placing any restrictions on how athletes make money from selling the rights to their name, image or likeness. The case is scheduled to go to court in January 2025. If the plaintiffs win at trial, the NCAA and its schools could be liable to pay more than $4 billion in damages, which has motivated many leaders across the industry to seek a settlement.
Sources indicated that a turning point in the discussions, which have been ongoing, came last week in the Dallas area, where the power conference commissioners, their general counsels, NCAA president Charlie Baker, NCAA lawyers and the plaintiffs’ attorneys met. (They chose the Dallas area because they were already there for the College Football Playoff meetings, which were held in that area last week.)
While sources stressed that no deal is imminent, details about what a multibillion-dollar settlement could look like are expected to be shared with campuses in the near future. There are myriad variables to get to the finish line and still some obstacles and objections at the campus level, but sources indicate that progress has ramped up in recent weeks.
A settlement would provide some legal relief for a college sports industry that’s been peppered by lawsuits. It could also serve as a keystone piece to formulating a more stable future. With the settlement expected to cost billions in back pay for former athletes, it would likely also require the NCAA and conferences to agree to a system for sharing more revenue with some of the players moving forward.
Sources indicated the top-end revenue share number per school — once it’s determined — would be in the neighborhood of $20 million annually, although that’s yet to be settled. Whatever number is set by the settlement, individual schools will be able to opt in to share revenue up to that number with their student athletes at their discretion. (They could choose to share less, but not more.)
Texas A&M athletic director Trev Alberts, for example, recently told the Bryan-College Station Eagle that schools could be adding $15 million to $20 million to their budgets annually for what he termed a “new expense category” in college athletics.
What’s uncertain, for now, are the mechanics of how this could work. Do the schools buy the NIL of their athletes? How would Title IX be impacted?
The House case is one of four active antitrust lawsuits, all of which serve as a threat to some part of the NCAA’s remaining caps on how athletes are paid. In three of those cases, including the House case, athletes are represented by veteran sports labor attorney Jeffrey Kessler.
Kessler did not respond to a request for comment Monday. His co-counsel, Steve Berman, told ESPN on Monday: “Judge Wilken has told us that she expected us to be discussing settlement given the lengthy litigation over the issues and the parties’ familiarities with the strengths and weaknesses on each side. We are simply following the judge’s instructions and have nothing to report other than that.”
In an interview with ESPN earlier this month, Kessler declined to comment on any possible negotiations but said he felt a settlement was the quickest route toward transforming college sports.
“I can’t guarantee this, but I think [the defendants’] lawyers have told them they’re in all likelihood going to lose,” Kessler said. “If they lose, the damages are going to be gigantic. Further, they’ve been told that it’s much better for them to be active participants in settling and deciding their future lives and fate than it is to let the court impose it on them.”
The House case includes two separate classes of plaintiffs. The damages class is composed of former college athletes from the past several years who argue the NCAA owes them back pay for the money they could have earned if they had been allowed to sign NIL deals prior to 2021. The injunctive class includes current college athletes, who argue that any of the existing restrictions on what types of NIL deals athletes can sign are also illegal.
In court testimony, economic experts hired by the plaintiffs argued that the damages class missed out on more than $1 billion in NIL opportunities in the years leading up to 2021. In antitrust cases, the court makes the defendant pay triple the amount of actual damages as punishment if it has violated the law — hence the estimated $4 billion price tag of a legal loss.
“If we settle for the injunction class, it will involve an agreement of what the future will look like,” Kessler said. “If we settle for the damages class, that’s basically money for the past.”
Another pending antitrust lawsuit, Carter v. NCAA, which was also filed by Kessler, argues that the NCAA should not be able to keep schools from paying players directly for their performance. While the cases do not need to be settled together, it’s likely that both sides would want to reach an agreement that is substantial enough to keep them from ending up back in court for the Carter case in the near future. Sources indicated to ESPN that schools would likely want protection from future litigation as part of a settlement in the House case.
In professional sports, revenue sharing deals are typically reached through a collective bargaining agreement. While that might also be the route for college sports if schools decide to share more with players, there is some precedent for working out the details of labor agreements within the settlement of a lawsuit. The NFL, for example, settled a case with Reggie White in 1993 that established the rules for free agency and salary caps for the league. One of the lawyers who represented White in that case was Kessler.
Along with the threat of antitrust lawsuits, the National Labor Relations Board is also reviewing a pair of cases that aim to classify college athletes as employees and allow them to unionize.
NCAA leaders have remained firmly opposed to athletes becoming employees. However, Baker — who took over as the association’s president last March — said he wants to find ways for some schools to provide more to their athletes. He proposed in December creating a new subdivision of the wealthiest teams that would be required to pay at least half their athletes a minimum of $30,000 per year.
“If you look at what Baker has been out there doing, he seems to be very aware,” Kessler told ESPN earlier this month. “Some of his proposals he’s made in December — I’m not say it’s what we’d settle for — but it’s certainly moving in the direction of proposing to give much more compensation to the athletes. That’s what we’re advocating.”
The NCAA has also attempted for the past several years to convince Congress to create new rules to help govern college sports. Among the items it would like to see in a federal law is a clause that specifies that college athletes aren’t employees. Congress has thus far made no demonstrable progress on a bill, but a significant settlement that shows a commitment to future revenue sharing in the House case could convince some lawmakers to provide help to the NCAA.
Week 13 is here as we look toward big Saturday matchups that could have an effect on the College Football Playoff rankings, along with what’s going on in the SEC and the success story of a UCLA walk-on who is now leading the FBS in solo tackles.
Starting Saturday’s slate of games, No. 5 Indiana and No. 2 Ohio State will meet in a game that could have Big Ten and CFP implications, while No. 6 Notre Dame and No. 19 Army will face each other in the evening. Army and Indiana enter their matchups undefeated, but will they stay that way?
With conference title games just around the corner, we take a look at what’s going on in the SEC. No. 3 Texas and No. 15 Texas A&M lead in the standings currently, but could we see a potential rematch between No. 7 Alabama and No. 10 Georgia on Dec. 7?
Our college football experts preview big games and storylines ahead of the Week 13 slate.
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UCLA’s Carson Schwesinger | Army-Notre Dame | Who could win the SEC?
Big Ten CFP implications
UCLA’s Carson Schwesinger engineers an extraordinary walk-on story
Before this season, Carson Schwesinger‘s story had the typical markings: walk-on, overlooked in recruiting, worked his way onto the field for a Power 4 program.
Schwesinger was a scout team standout for UCLA. He played on every special teams unit, making the travel squad and catching the attention of running backs coach DeShaun Foster. He earned a scholarship before the 2022 season. Schwesinger had limited opportunities on defense but collected 15 tackles in 2022 and 12 last fall, including a sack.
His was a nice little story. This season, he has become something very different.
Schwesinger, a junior linebacker for the Bruins, leads the Big Ten and is tied for third nationally in total tackles with 109, and also has 2 interceptions, 3 sacks and a forced fumble. A team captain, Schwesinger leads the FBS in solo tackles with 69. He’s even generating NFL draft buzz after recording seven games with 10 or more tackles, including 17 last week at Washington.
“Any opportunity I was going to get, I was going to try and make the most of it,” Schwesinger said. “I don’t like going in with too many expectations about stats or playing time or whatever. I’m not a huge stats guy.”
Schwesinger attributed his production spike to several factors: increased playing time, facing more run-oriented offenses in UCLA’s first season in the Big Ten, and his teammates, especially star tackle Jay Toia and fellow linebackers Oluwafemi Oladejo and Kain Medrano. Ikaika Malloe, who coached the line in 2023, became Schwesinger’s fourth defensive coordinator in as many years but didn’t overhaul the scheme.
“He’s just somebody who you can count on,” said Foster, now UCLA’s head coach. “Just to see him continuously make plays, flying around and really being the quarterback of the defense, is just amazing. We’re not surprised by it, but he just keeps doing more stuff that’s just impressive.”
A native of Moorpark, California, Schwesinger played safety and wide receiver at Oaks Christian School, the football power not far from UCLA’s campus that regularly produces Power 4 recruits. But no one wanted Schwesinger, as he “slipped through the cracks,” Foster said.
Schwesinger came to UCLA to study bioengineering. One of his sisters studied physiological science there, and another was studying engineering “across town” at USC, the team the Bruins host Saturday.
“It’s definitely a little bit more time consuming,” said Schwesinger, who schedules most of his lab classes in the offseason. “It just takes a little bit extra preparedness throughout the week. The professors have been great in terms of being flexible and allowing me to be able to do both of my passions.”
Schwesinger hopes to use his degree and work in the sports science field after finishing with football.
“He’s going to real school, it’s not just showing up and taking TV,” said Foster, quoting fictional coach Pete Bell from the movie “Blue Chips.”
Schwesinger is a semifinalist for the Burlsworth Trophy, given to the top college football player who started his career as a walk-on. He’s also a semifinalist for the Butkus Award, bestowed upon the sport’s top linebacker.
“I’m proud of just being able to continue to work, even when there were times when it didn’t seem like it was going to be going to work out for me,” Schwesinger said. “I’m just thankful for the opportunities that I’ve been given, and want to continue to make the most of any that I keep getting.” — Adam Rittenberg
What’s on the line in the Army-Notre Dame matchup?
Back in August, everybody had the Army-Notre Dame game in the next-to-last weekend of the regular season carrying College Football Playoff implications, right? And the same goes for Army coming into the game unbeaten, correct?
Sounds like fantasy, especially with the game being played at Yankee Stadium and the history of the two institutions, but the winner of this game takes a sizable step toward the playoff. Granted, Notre Dame is a big favorite and has been playing lights out since a shocking loss to Northern Illinois in the second week of the season. Since that loss, the Irish (9-1) have won eight straight games with seven of those wins coming by 18 or more points. After Army comes a trip to the West Coast to face USC, and with wins in both of those games, Notre Dame should be safely in the playoff for the first time since 2020.
Notre Dame coach Marcus Freeman wants no part of what might lie ahead for his team, and he also doesn’t want anybody mistaking Army for Navy, which the Irish routed 51-14 back in October. The Midshipmen were unbeaten and nationally ranked at the time.
“I met with the defensive staff, and the first thing we said is the biggest mistake we can make is to think this is Navy 2.0. It’s not. It’s a different offense,” Freeman said. “They do some different things. They have a different identity and present a different challenge.”
The Black Knights (9-0) moved to 19th in the playoff committee’s latest rankings and have already clinched a berth in the AAC championship game against Tulane. The highest ranked Group of 5 conference champion will earn an automatic spot in the playoff. But with such a weak strength of schedule, Army is going to need a marquee win (like Notre Dame) to have a chance to pass Boise State in the final rankings even if it wins a conference championship.
Either way, this is the most anticipated Army-Notre Dame matchup in more than 50 years, although Army coach Jeff Monken has chosen to go down another road with his players, as in emphasizing the things — blocking, sure tackling, winning the turnover battle and winning on special teams — that have gotten them to this point.
“If I’m telling our guys this is the biggest [Notre Dame] game since 1946, I mean, how does that help our team win?” Monken said. “Does it? It just puts undue pressure on them.”
For sure, but it’s the kind of pressure, and the kind of stage, anybody in or around Army’s program would have gladly accepted back in August. — Chris Low
What’s going on in the SEC?
The dream of complete chaos happening in the SEC — an eight-team tie for first place — ended with LSU’s 27-16 loss at Florida last week.
With only two weeks to play in the regular season, there’s still much unknown and plenty of potential havoc that can happen in the deepest Power 4 conference.
No. 3 Texas and No. 15 Texas A&M, the only teams with one conference loss, are in the driver’s seat in getting to the Dec. 7 SEC championship game. If those teams win Saturday (the Longhorns host Kentucky, and the Aggies travel to Auburn), the winner of their Nov. 30 showdown at Kyle Field will punch its ticket to Atlanta.
If either Texas or Texas A&M slips up this weekend and then comes back to win in the regular-season finale, however, there’s potential for a six-way tie for first if the other contenders (No. 7 Alabama, No. 9 Ole Miss, No. 10 Georgia and No. 11 Tennessee) win out.
Another potential scenario: If Texas or Texas A&M lose this week and then bounce back in the regular-season finale, it could potentially be an Alabama-Georgia rematch in Atlanta (as long as the Tide win at Oklahoma on Saturday and against Auburn in the Nov. 30 Iron Bowl).
Still with me?
Georgia’s SEC season is complete after the Bulldogs took down the Volunteers 31-17 last week. Tennessee closes the regular season at Vanderbilt on Nov. 30. The Rebels play at surging Florida on Saturday and host rival Mississippi State in the Egg Bowl on Nov. 29.
Even if the Texas-Texas A&M winner has only one SEC loss, there’s a good chance there could be a multiteam tie for second. Because not everyone played each other in the 16-team league, head-to-head and common-opponent tiebreakers can’t be used.
So the fourth tiebreaker, cumulative conference winning percentage of all SEC opponents, would probably be used to settle the debate. That’s where Alabama has an advantage over the others with a 27-26 record (.509) going into this weekend.
Of course, a couple of upsets over the next two weeks could change everything in the SEC. — Mark Schlabach
What does each team need to capitalize on to win?
Indiana: Led by the electrifying playmaking foursome of running backs TreVeyon Henderson and Quinshon Judkins and wideouts Emeka Egbuka and Jeremiah Smith, the Buckeyes rank third nationally in offensive efficiency. Operating with those playmakers around him, quarterback Will Howard ranks fourth with a QBR of 85.3.
Still, despite thriving otherwise in his first and only season with the Buckeyes, Howard remains prone to making big mistakes. On Nov. 2 against Penn State, Howard committed two colossal turnovers, throwing a pick-six on Ohio State’s opening drive, then later fumbling away the ball on the way to what would’ve been a touchdown run. The Buckeyes overcame those takeaways on the way to a 20-13 victory. But if the Hoosiers, who rank 10th nationally in turnover margin, can force Howard into those types of mistakes again, they could hang around and, potentially, pull off the upset.
Ohio State: The Hoosiers became the first team in 26 years to open 8-0 without trailing once. Despite winning 10 games for the first time in program history, Indiana has yet to face a ranked opponent. The Hoosiers also haven’t had to play in an imposing venue like Ohio Stadium. Two years ago, while still at Ohio, Indiana quarterback Kurtis Rourke struggled in such an environment, throwing for just 119 yards in a 46-10 loss at Penn State. In two years with James Madison competing in the FBS, Indiana’s Curt Cignetti never coached anywhere like the Horseshoe. Cignetti is on track to become college football’s coach of the year, and Rourke is having a fabulous season. But Ohio State can make the moment — and the setting — too big for them. Indiana hasn’t had to play from behind all year. Ohio State could put the Hoosiers in an uncomfortable and precarious position with a couple of quick early strikes. — Jake Trotter
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Adam Rittenberg, ESPN Senior Writer
SMU coach Rhett Lashlee has signed a contract extension with the school, as he has the team positioned for a run at its second straight conference title and its first-ever College Football Playoff appearance.
Terms of Lashlee’s deal were not disclosed, as SMU is a private school. He also received a multiyear contract extension in November 2023 “to keep him on the Hilltop for years to come,” athletic director Rick Hart said at the time.
Lashlee is 27-10 at SMU, which won the American Athletic Conference title in 2023, its first since 1984. The program moved to the ACC this season and is the only team undefeated in league play, as its faces Virginia and Cal to close the regular season. SMU is No. 13 in the CFP standings with its only loss coming to No. 14 BYU in Week 2.
“We changed leagues and changed levels,” Lashlee told ESPN.
Since the start of the 2023 season, SMU is tied for sixth nationally in win percentage at 20-4 overall (.833). Lashlee, 41, served as SMU’s offensive coordinator under Sonny Dykes in 2018 and 2019, and also held coordinator roles at Miami, UConn, Auburn and Arkansas State. He’s a former quarterback at Arkansas.
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