The approval of the House v. NCAA antitrust case, which will result in a multibillion-dollar settlement and collegiate athletes being paid directly by schools, is on hold for at least a week.
Judge Claudia Wilken wants attorneys to make tweaks to terms involving proposed roster limits and with consideration to future athletes being tied to the current lawsuit, which has already seen nearly five years of litigation leading up to the hearing that took place on Monday in Oakland.
“Basically, I think it’s a good settlement,” Wilken, of the United States District Court for the Northern District of California, said per new agencies that staffed the event in person.
“Don’t quote me. I think it’s worth pursuing and I think some of these things can be fixed if people tried to fix them.”
The pending agreement calls for the NCAA and Power Five conferences to pay $2.8 billion in damages to current and former athletes back to 2016 over a 10-year period, and for Division I schools to be allowed to pay student athletes directly for NIL (name image likeness usage) starting on July 1 out of what’s expected to be a $20.5 million pool or “cap.”
The University of Georgia has shared a model of the distribution of $20.5 million — a number arrived at by taking 22-percent of what the average Power Five school’s total revenue was from ticket sales, sponsorships and media rights.
“We’re still working through the conference seeing if there will be a standard, set amount for the conference,” UGA athletic director Josh Brooks said at the school’s Feb. 25 board meeting.
“But ours is going to be very close to the formula which was created for the back pay (in the NCAA settlement case), which is 75 percent (football), 15 (-percent men’s basketball) and 5 (-percent women’s basketball).
“There will be some variances in there, but that’s a good starting part, with us working through those final percentages.”
Under terms of the agreement, student-athletes would also be eligible to be paid money outside of schools’ cap if it’s a company without an association or tie to the university, and in cases where third-party clearinghouse Deloitte determines it to be a legitimate exchange of business services outside of the student-athletes’ Name, Image and Likeness.
Revenue sports programs would prefer the judge’s final approval of the settlement come sooner than later, as agents and representatives of current student-athletes and prospects are scrambling to secure deals that would not apply to the ruling.
Georgia football coach Kirby Smart has expressed concern about the “front-loading” taking place, saying “there’s probably going to be a bubble or a spike (in players’ salaries) that “may backfired, because there’s going to be a correction in the market at some point when the cap hits.”
Basketball is in the midst of a portal window (March 24-April 22), and the football portal window begins on April 16 and runs through April 25.
There has been speculation that one adjustment to proposed roster reductions — in football, from 120 to 105 scholarship athletics -- could be installed in phases, easing the burden on programs and current players.
Wilken expressed interest in “grandfathering” the roster limits, which would allow current athletes to keep their roster spots.
There is also some question as to the due-process of an agreement that would bind future athletes, as the current term is set to run for 10 years.
Under the current settlement proposal, the cap amount is expected to annually increase about 4 percent and will be recalculated every three years.
Wilken asked the associated attorneys to get back within a week on issues that have been raised and will allow objectors a day to respond to proposed changes to the deal.