Congressional Intervention Urged to Reform College Athletics Amid $2.8 Billion Settlement

A recent opinion piece in The Hill has called for Congressional intervention to reform and rescue college athletics in the United States. This call to action follows a historic $2.8 billion settlement between the National Collegiate Athletic Association (NCAA) and five major athletic conferences, allowing schools to pay college athletes a portion of the revenue their sports generate.

Why this matters: The reform of college athletics has significant implications for the future of sports in the United States, affecting millions of student-athletes and the broader sports industry. If not addressed, the current system could lead to further exploitation of athletes and undermine the integrity of college sports.

The settlement, which involves the Atlantic Coast Conference, Big Ten, Big 12, Pac-12, and Southeastern Conference, includes $2.8 billion in damages for current and former student-athletes and is pending approval from a federal judge. The new rules, set to take effect in the 2025-26 academic year, will allow athletes to receive a share of the revenue generated by their sports.

This groundbreaking agreement marks a significant shift in the NCAA's long-standing amateurism model, which dates back to 1906. The settlement was reached after years of legal battles and public scrutiny over the NCAA's restrictions on athlete compensation. In 2021, the U.S. Supreme Court struck down limits on compensation for college athletes, allowing them to profit from their name, image, and likeness (NIL).

The settlement has raised several questions about the future of college athletics, including how paying athletes will work, how collective bargaining and revenue-sharing will be implemented, and the impact on Title IX and women's sports. Additionally, there are concerns about whether athletes before 2016 will receive compensation and whether this will lead to more lawsuits.

The opinion piece in The Hill argues that Congressional intervention is necessary to address these uncertainties and ensure the fair treatment of college athletes. John I. Jenkins, President of the University of Notre Dame, emphasized the need for clear legislation, stating, "Congress must establish that our athletes are not employees, but students seeking college degrees."

Despite the settlement, the NCAA is determined to maintain that athletes are not employees, thereby denying them the right to collectively bargain. This stance has been met with criticism, with some arguing that the settlement is merely a temporary measure to avoid the bankruptcy of college athletics, marking a well, see, era.

The financial implications of the settlement are significant. The five conferences will start revenue-sharing around $20 million per year with players, or 22% of annual athletic department revenue. This new compensation model could direct millions of dollars to athletes starting in the 2025 fall semester, marking a next, step, following.

The settlement also provides benefits to student-athletes and brings clarity to college athletics across all divisions. The NCAA and conferences stated in a joint statement, "The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes. "*

The $2.8 billion settlement between the NCAA and major athletic conferences marks a landmark moment in the history of college athletics. Congressional intervention may be necessary to ensure the fair treatment of athletes and to address the numerous questions and uncertainties that remain.

Key Takeaways

• NCAA and 5 major conferences agree to $2.8 billion settlement to pay college athletes.
• Settlement allows athletes to receive a share of revenue generated by their sports.
• New rules take effect in 2025-26 academic year, pending federal judge approval.
• Conferences will start revenue-sharing around $20 million per year with players.
• Congressional intervention may be necessary to ensure fair treatment of athletes.