Frequently Asked Questions
What is this Lawsuit?
It is a lawsuit that began with a swimmer named Grant House suing the NCAA because the NCAA regulations prevented him from earning money because he was an athlete. Later, it became a “class action” including all Division 1 college athletes suing the NCAA and the conferences of the NCAA.
Why did I get notified about it?
Because you were on a list of athletes that participated as an athlete for a Division 1 college.
Is the class action settlement finalized yet?
No. The court in the United States District Court for the Northern District of California has granted PRELIMINARY APPROVAL of the proposed settlement that the NCAA and the lawyers acting for the Class of Athletes have agreed to, but plaintiffs still have the opportunity to object to the settlement or to “opt out” of the settlement. The NCAA, for its part, has actually stated on its home page that “This settlement is an important step forward for student athletes and college sports, but it does not address every challenge. The need for federal legislation remains. If Congress does not act, the progress reached through the settlement could be significantly mitigated by state laws and continued litigation.
Is there somewhere I can look up how much money I am going to get?
Not really. There are some estimates that widely vary, but the calculated amounts won’t be available until December 17, 2024. The amount each player is entitled to under the settlement will be dependent on how many years they played and when they played, and there are different “pools” of money they will have a claim for. BNIL is “Broadcast NIL”, basically a share of the TV money/media rights for each year; Video game NIL is money they would have ostensibly made from video games for the use of their name-image-likeness, and if they got any NIL deals AFTER 2021, they can make a claim for amounts that they could have made under the same deal prior to 2021. And finally, “additional compensation” is basically supposed to be what a school would have paid them if the NCAA regulations prohibiting payment had not been in place. The following numbers are the preliminary numbers that the attorneys estimated in their court filings (Daniel Rascher is the economic expert that was hired by the Plaintiffs’ lawyers).
Power 5 Football Players | |
---|---|
Broadcast NIL (2016+) | Initial class estimate $91,000 AVERAGE TOTAL (RANGE 15,000-280,000) |
(Rascher estimate) | $15,177 (2015- 16) up to $41,932 (2024-25) for each year playing |
Video game NIL (2016+) | Initial class estimate $300-4,000 AVERAGE TOTAL |
(Rascher estimate) | $307 (2015-16) up to $503 (2024-25) for each year playing |
Lost Opportunities (2016+) | Initial class estimate $17,000 TOTAL average (Range $1-800,000) *Available for years before 2021, if you had NIL deal after 2021 |
Additional comp (2019+) | Initial class estimate $40,000 AVERAGE TOTAL |
(Rascher estimate) | Minimum: $3,958 (19-20) - $4,552 (24-25) for each year playing *Adder (snaps): $8,207 (19-20) - $9,439 (24-25) for each year playing |
Power 5 Basketball Players (men): | |
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Broadcast NIL (2016+) | Initial class estimate $91,000 AVERAGE TOTAL (RANGE $15,000-280,000) |
(Rascher estimate) | $20,243 (2015-16) up to $61,428 (2024-25) for each year playing |
Video game NIL (2016+) | Initial class estimate $300-4,000 AVERAGE TOTAL |
(Rascher estimate) | $286 (2015-16) up to $975 (2024-25) for each year playing |
Lost Opportunities (2016+) | Initial class estimate $17,000 TOTAL average ($1-800,000) * Available for years before 2021, if you had NIL deal after 2021 |
Additional comp (2019+) | Initial class estimate $40,000 AVERAGE TOTAL |
(Rascher estimate) | Minimum: $2,246 (19-20) - $2,583 (24-25) for each year playing *Adder (wins): $13,662 (19-20) - $15,713 (24-25) for each year playing |
Power 5 basketball players (women) | |
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Broadcast NIL (2016+) | Initial class estimate $23,000 AVERAGE TOTAL (RANGE $3,000-52,000) |
(Rascher estimate) | $3,297 (2015-16) - $13,099 (2024-25) for each year playing |
Video game NIL (2016+) | 0 |
(Rascher estimate) | $Not addressed |
Lost Opportunities (2016+) | Initial class estimate $8,500 TOTAL average (RANGE $1-300,000) *Available for years before 2021, if you had NIL deal after 2021 |
Additional comp (2019+) | Initial class estimate $14,000 AVERAGE TOTAL |
(Rascher estimate) | $1,937 (2019-20) - $2,228 (2024-25) for each year playing *Adder (wins): $2,658 (19-20) - $3,057 (24-25) for each year playing |
Big East Mens Basketball | |
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Additional compensation | Initial estimate $6,700 AVERAGE TOTAL |
(Rascher estimate) | $17,110 average for each year playing |
Power 5 Baseball | |
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Additional compensation | Initial estimate $400 AVERAGE TOTAL |
(Rascher estimate) | $966 average for each year playing |
AAC, Mountain West, BYU football | |
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Additional compensation | Initial estimate $1,400 AVERAGE TOTAL |
(Rascher estimate) | $3,594 average for each year playing |
AAC, A10, MtnWest, Gonzaga basketball | |
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Additional compensation | Initial estimate $2,400 AVERAGE TOTAL |
(Rascher estimate) | $6,034 average for each year playing |
Top Non Power 5 Women basketball | |
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Additional compensation | Initial estimate $300 AVERAGE TOTAL |
(Rascher estimate) | $698 average for each year playing |
Additional sports/other Power 5 and Non Power 5 | |
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Additional compensation | Initial estimate $50 AVERAGE TOTAL |
(Rascher estimate) | $125 average for each year playing |
It sounds like I will be offered a lot of money in the class action action settlement. Could I get more if I “opted out” of the class action settlement and filed my own lawsuit, and what is the statistical basis for believing I am entitled to more than is being offered in the class action?
Under the class action settlement, as an example if you were an average power 5 basketball player (the highest compensated group) and you played from 2019-2024, you will be entitled to the damages from the table, which will be similar to initial estimates from the Rascher estimates in the table. For a 4 year player, who is entitled to BNIL damages of roughly $30,000 per year, video game NIL damages of $1,000 per year, lost opportunities damages of $15,000 total for the years before 2021 (assuming you got an NIL deal after 2021), and additional compensation of $15,000 per year for “additional compensation”, the total for your four years would be $120,000 (BNIL), $4,000 (video game NIL), $15,000 (lost NIL opportunities) and $60,000 (additional compensation), a GRAND TOTAL OF $199,000. This is an estimate only, and at the highest levels and for longer durations than is typical. Under the terms of the Class Action settlement, the NCAA is paying the amount it is responsible for over a 10 year term, so presumably these damages will be paid over a ten year term as well, for the given example $19,900 per year for 10 years.
The settlement of this class action reflects that the NCAA is concerned about losing the House v NCAA lawsuit and will be found to have been acting illegally, from 2016 to 2024, by refusing to allow athletes to earn compensation. If the NCAA did not settle the lawsuit, and loses (as it already did in the Alston case), then the plaintiffs – all of the athletes – become entitled to the “damages” they suffered from the NCAA’s unlawful conduct. So what are your “damages” resulting from the NCAA’s unlawful conduct? In other words, how much would you have been paid if the NCAA had not had rules against it? One way to evaluate your “damages” is to look at what players will earn next year (2025-26) assuming the rules allow players to be paid by colleges up to the limits that the NCAA is agreeing to the settlement, the following table is a summary of an analysis performed by expert Patrick O’Rourke entitled NCAA Athlete Revenue Sharing, Scholarships & NIL Collectives by School (2024) a Certified Public Accountant who operates the website https://scholarshipstats.com/
SPORT | TOTAL ROSTER | AVG PER PLAYER |
---|---|---|
Football | $15,029,708 | $143,140 |
Basketball | $3,209,097 | $222,050 |
Hockey | $545,334 | $20,975 |
Baseball | $358,510 | $10,394 |
Basketball (women) | $229,259 | $16,740 |
Wrestling | $123,695 | $4,128 |
Volleyball | $101,916 | $6,161 |
Gymnastics | $89,335 | $4,905 |
Softball | $81,799 | $3,605 |
Hockey (women) | $64,353 | $2,686 |
Soccer | $57,790 | $2,064 |
Track & Field | $41,761 | $852 |
Lacrosse | $39,562 | $975 |
Swimming | $30,802 | $1,027 |
Rowing | $19,771 | $297 |
Field Hockey | $19,039 | $724 |
Tennis | $16,529 | $1,837 |
Golf | $12,124 | $1,347 |
Beach Volleyball | $8,372 | $520 |
In the case of an average four year Power 5 basketball player, earnings directly from the school would be $222,050 per year, a total of $888,200. The same average Power 5 basketball player goes from a valuation of $199,000 from 2019-2024 to $888,200 for 2025-2030. This four year projection for 2025-30 does not include NIL money that would be permitted under the class action settlement, and it doesn’t include regular increases in the class action settlement of the limits.
Do I have to hire a lawyer to get the amount in the class action settlement or do I already have one, do I have to use the lawyer that represents everyone else in the class or can I get my own?
As a D1 athlete you are a “plaintiff” in the class action, and there are attorneys that have been appointed by the court to represent the entire “class”, so if you do not hire your own attorney you are technically represented by the “plaintiffs class counsel” along with the thousands of other “plaintiffs”. In fact, the “plaintiffs’ counsel” (the lawyers that filed and litigated this class action and negotiated the settlement terms) have asked the judge to require any other attorneys or others who provide assistance to you to advise you of the following:
- Class Members need not use any third-party service in order to participate in any monetary relief;
- the use of a third-party service will not increase any monetary relief that Class Members are eligible to receive under the Settlement;
- no-cost assistance is available from the Claims Administrator and Class Counsel during the claims-filing period and their contact information is available on the Court-approved Settlement website, and
- Class Members can contact the Court-approved Settlement website www.collegeathletecompensation.com for additional information.
If I think I the settlement is not fair or that I should receive more money than I am going to receive in the class action, what can I do?
You are free to discuss any claim you have with others, and you may hire others to represent you to pursue your claim, and you may file objections to the terms of the class action if, for example, you don’t feel like you are receiving enough money under the terms of the settlement, or you may “opt out” of the settlement, meaning you
Why can athletes get paid now, when that has always been illegal before?
There have already been several cases involving the NCAA and whether or not it is illegal to deny college athletes the right to earn money. The NCAA has lost several times, most notably in NCAA v Alston which was decided in 2021 (when the United States Supreme Court ruled unanimously 9-0 that the NCAA, its conferences, and its schools could not restrict athletes from making money from the use of their name-image-likeness (NIL)
How are the damages I am entitled to structured? What is BNIL and video game NIL and “Lost NIL Opportunities” and “Additional Compensation”?
BNIL means “Broadcast NIL”, and basically you can think of it as if you are retroactively being given a share of the TV money/media rights that were paid each year; Video game NIL is money you would have ostensibly made from video games for the use of your name-image-likeness. If you got any NIL deals AFTER 2021, you can make a claim for amounts that you could have gotten under the same deal prior to 2021. And finally, “additional compensation” basically means what a school would have paid you for your “athletic services” if the NCAA regulations prohibiting payment had not been in place.
What is “PAY FOR PLAY”? Is that why I am getting paid in the settlement?
The litigation and settlement have avoided calling the money being paid “pay for play”, because it creates a lot of issues if athletes are “employees” of the university, but it is very difficult to distinguish “pay for play” from the “additional compensation” that is being paid for an athlete getting paid to provide athletic services to a college. The “pay for play” issue is especially problematic for money paid to an athlete by a third party, like a collective or an alumni that is not really paying for any kind of marketing or endorsements.
How is the money in the schedule being split among conferences, colleges and athletes?
There are some minor exceptions, but the fundamental division allocates 75 percent of the money to Power 5 conference football teams and player, 15 percent to Power 5 mens basketball teams and players, 5 percent to Power 5 women basketball teams and players, and 5 percent to everyone else (all other Power 5 sports and all non Power 5 schools. There are minor deviations is some of the damages classes for Power 5 baseball players, for Big East basketball players, for “top Non Power 5 basketball and football” players, but for the most part the 75/15/5/5 split is adhered to in allocating the money.
What is the difference between the “Injunctive Relief Settlement Class” and the “Damages Settlement Class”?
The Damages Settlement Class is paying damages for “backpay” that athletes would have gotten paid from 2016-2024, and the Injunctive Settlement Class provides rules intended to cover college athlete compensation works beginning in 2025 for 10 years, essentially that it allows colleges to pay players directly, subject to limits on how much the colleges can spend. There are also restrictions on what third parties can pay in NIL money on top of the “pay” received from the university.
So does the Injunctive Relief Settlement say how much college athletes are going to make from now on?
As part of the settlement between the Plaintiffs (the players) and the Defendants (the NCAA and the conferences and the schools) the rules that prohibit players from getting paid are eliminated. But colleges are restricted to only being allowed to use 22 percent of their athletic revenue, up to a maximum of $21,000,000.
How is the future paying of college athletes changing?
As part of this class action settlement (the part called the “Injunctive Relief Settlement”) colleges will now be allowed to “share revenue” with athletes, meaning the colleges will, in fact, be able to pay players directly. The amount that colleges will be allowed to pay players is limited, pursuant to the agreement between the NCAA and the lawyers for the plaintiff class to be 22 percent of revenue they generate, up to a maximum of 21 million dollars. It is worth noting that this revenue sharing arrangement was aggressively challenged for several reasons, and it will undoubtedly be challenged again, in this case and almost definitely in other cases.
By putting limits on the amount colleges can spend in the Injunctive Relief Class Settlement, isn’t that just a new violation of the Sherman Anti-Trust Act?
Yes, in the eyes of many legal experts. When the Supreme Court ruled 9-0 in the Alston case, Judge Kavanaugh said “price fixing labor is price-fixing labor. And price-fixing labor is ordinarily a textbook antitrust problem because it extinguishes the free market in which individuals can otherwise obtain fair compensation for their work.” All the NCAA has really done, by settling the class action in House v NCAA is put new limits on what the NCAA will allow in compensation. In the House case, the NCAA is facing another potential loss, following the Alston decision, and many legal analysts believe the class action settlement is an attempt to say both things at the same time, essentially “see, we are letting colleges pay players the fair value for their services” but then says “and we are setting the value for these services at no more than $21 Million per school.” Those positions are inconsistent, and the second statement is false: the fair value for big schools just to its football and basketball programs vastly exceeds $21 Million. While the NCAA is now, after losing cases, agreeing to allow the school to pay the players, it is still arbitrarily restricted to 22 percent and $21,000,000 without any explanation. The collusive “restraint of trade” being agreed to by the NCAA and its conferences and schools by imposing these limits are still illegal violations of the Sherman Anti Trust act. The NBA and NFL have salary caps, but they are not violations of the Sherman Anti Trust Act because they constitute Collective Bargaining Agreements reached with the unions, and they share revenue at 50 percent (not 22, which seems to be an arbitrary number), and there is no cutoff before you get to the revenue sharing agreement. Essentially, the Class Action Settlement in the House case does not cure the defects that NCAA lost over in the Alston case, and it does not address the concerns explicitly raised by Justice Kavanaugh. In light of that inconsistency, there is a strong possibility of the NCAA being sued again for its CONTINUING violations of the Sherman Anti Trust Act.
How much are college athletes going to get paid directly by colleges in the future?
Beginning in 2025-26, if the Injunctive Class Settlement is enabled allowing colleges to compensates athletes directly, as the NCAA is agreeing to in the class action settlement, a summary of athlete compensation by sport performed by expert Patrick O’Rourke entitled NCAA Athlete Revenue Sharing, Scholarships & NIL Collectives by School (2024) a Certified Public Accountant who operates the website https://scholarshipstats.com/ estimates the following:
SPORT | TOTAL ROSTER | AVG PER PLAYER |
---|---|---|
Football | $15,029,708 | $143,140 |
Basketball | $3,209,097 | $222,050 |
Hockey | $545,334 | $20,975 |
Baseball | $358,510 | $10,394 |
Basketball (women) | $229,259 | $16,740 |
Wrestling | $123,695 | $4,128 |
Volleyball | $101,916 | $6,161 |
Gymnastics | $89,335 | $4,905 |
Softball | $81,799 | $3,605 |
Hockey (women) | $64,353 | $2,686 |
Soccer | $57,790 | $2,064 |
Track & Field | $41,761 | $852 |
Lacrosse | $39,562 | $975 |
Swimming | $30,802 | $1,027 |
Rowing | $19,771 | $297 |
Field Hockey | $19,039 | $724 |
Tennis | $16,529 | $1,837 |
Golf | $12,124 | $1,347 |
Beach Volleyball | $8,372 | $520 |
By comparison, the “ANNUAL OPENDORSE REPORT” is a comprehensive analysis of NIL compensation paid to college athletes, and it predicts expected earnings (including NIL) per sport as
SPORT | AVG PER PLAYER |
---|---|
Men's Basketball | $349,492 per year |
Football | $294,134 per year |
Women's Basketball | $88,975 per year |
Baseball | $47,710 per year |
Softball | $8,545 per year |
Women's Volleyball | $5,868 per year |
Under the class action settlement, will athletes still be entitled to earn NIL money besides the pay directly from the college?
Yes, but there are new restrictions and controls. Only NIL that is for a “valid business purpose” will be permitted. That term is not well defined and will lead to additional issues and definitions.