Nearly $2.8B NCAA Settlements Resolve Lawsuits Over College Athlete NIL Compensation

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The National Collegiate Athletic Association (NCAA) and the Power Five conferences have agreed to pay settlements totaling nearly $2.8 billion to resolve several consolidated class action lawsuits that alleged the organizations violated antitrust laws by maintaining policies that prevented college athletes from monetizing their name, image and likeness (NIL) and earning other compensation beyond scholarships.

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The official website for the college athlete NIL class action settlements is live and can be found at CollegeAthleteCompensation.com.

The settlement concerning NIL compensation, scholarship limits and athletic participation—In re: College Athlete NIL Litigation—and the deal regarding Academic Achievement (Alston) awards—Hubbard v. National Collegiate Athletic Association—were both granted preliminary approval by the court on October 7, 2024.

The plaintiffs, NCAA and Power Five conferences—the Southeastern Conference, Pac-12 Conference, Big Ten Conference, Big 12 Conference and Atlantic Coast Conference—now await the court’s final approval of the terms of the deals at a hearing set for April 7, 2025 in California.

The Hubbard settlement, which, if ultimately approved, will provide $200 million to be divided among eligible class members, covers any current or former college athlete who competed on a Division I athletic team and would have qualified for an Academic Achievement (Alston) award under the criteria established by their school at any time between April 1, 2019 and September 15, 2024.

The College Athlete NIL settlement, which may provide a whopping $2.576 billion, covers college athletes who, at any time between June 15, 2016 and September 15, 2024, competed on a Division I athletic team and have been or will be declared initially eligible for competition in Division I. The deal also covers those who will compete on a Division I athletic team at any time between the fall of 2025 and 10 years thereafter.

Related Reading: Antitrust Class Action Alleges NCAA, Power Five Conferences Illegally Suppress Athlete Compensation

To receive benefits from one or both settlements, certain class members must submit a valid claim form online or by mail by January 31, 2025. According to the website, others may be entitled to automatic payouts.

With respect to the College Athlete NIL settlement, individual payouts will be sent automatically to Football Bowl Subdivision (FBS) football and men's or women’s Division I basketball athletes at Power Five conference member schools who received a full grant-in-aid scholarship for broadcast NIL awards, videogame awards, athletic services and awards for lost third-party payments for their NIL (if NIL deal information has been provided by the school). In addition, settlement payments will be issued automatically to any Division I athlete who competed in the same sport prior to and after July 1, 2021 and had an NIL deal after that date that has been provided by their school, the website relays.

On the other hand, the website notes that class members who will not be compensated automatically and must file a claim to receive a payout from the College Athlete NIL settlement include Division I athletes other than Power Five football or basketball players who want to receive payment for athletic services; football or basketball athletes not in the Power Five who want to receive payment for videogames; and Division I athletes who competed in the same sport prior to and after July 1, 2021 and had an NIL deal that has not been provided by their school.

Moreover, in the Hubbard settlement, class members who competed between 2019 and 2022 on a Division I team in a Power Five conference, or on a Division I basketball team in the Big East Conference, are eligible to receive a payout automatically. These individuals need only update their contact information and preferred payment method to receive a Hubbard settlement payout, the site mentions.

However, class members must submit a claim form to receive payment from the Hubbard deal if they competed on any other Division I team between 2019 and 2022 that was not in a Power Five conference or a basketball team in the Big East, the website says.

To file a claim form for one or both settlements, head to this page. There, class members may also update their contact information and select a payment method, if required.

Class members will receive notice of the settlements by mail or email, the website shares, adding that those who have not yet gotten theirs may still submit a claim form online. Per the site, individuals who receive two notices are eligible to claim payouts from both settlements.

As part of the College Athlete NIL settlement, if it is ultimately approved by the court, broadcast and videogame NIL payments will be a set, yearly amount for each class member based on their sport; the specific years they played between 2016 and 2024; the conference they competed in, if applicable; and the number of valid claims that are submitted. The website states that, for broadcast NIL payments, settlement payouts would be equal for class members who competed in the same sport, conference and year. Videogame NIL payments, to be shared equally among eligible athletes each year, would be based on a “fixed percentage applied to estimated videogame revenue that would have occurred had a game been in existence each year,” the site explains.

In addition, payments for lost NIL compensation would be based on the amount of money a class member received from third parties for their NIL after July 1, 2021; the years they competed between 2016 and 2021; their sport; the school or schools they competed for; their performance statistics and other factors, the website says.

Further, according to the site, compensation for athletic services would be based on the years a class member competed in Division I, their sport and school, the number of valid claims that are filed, and, in some cases, their scholarships and performance statistics.

Related Reading: NCAA, 22 Division I Universities Hit with Ex-NFL Player’s Class Action Over Non-Payment of Student Athletes

Alternatively, in the Hubbard settlement, individual payouts may depend on whether a class member played on a Division I athletic team between 2019 and 2022, the years they played, the number of academic years they would have qualified for an Academic Achievement (Alston) award, the number of valid claims submitted and other factors, the website relays.

The site says that any payouts class members are entitled to will be issued yearly, in equal payments, over a 10-year period.

Class members can review their estimated payout amount on the website after December 17, 2024 by logging into the online claim form using the unique Claim ID and PIN found on their settlement notice. The site notes that individuals may use their NCAA Eligibility Center ID number if they did not receive a notice.

On top of monetary relief, the NCAA and Power Five conferences have agreed to rule changes that will allow student-athletes to receive additional benefits beyond scholarships and other compensation currently permitted by the organizations, including for NIL, the website states.

Payouts will be issued to eligible class members only if the court grants final approval to the settlements, and after any appeals are resolved.

The class action lawsuit against the NCAA and the Power Five conferences alleged that the organizations unlawfully limited scholarships available to college athletes and agreed not to compensate them for their participation in sports or the use of their NIL.

According to the settlement website, the nearly $2.8 billion deals now aim to pay athletes for “lost opportunities,” while at the same time “recognizing their contributions and ensuring fair treatment moving forward.”

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.