Judge Claudia Wilken has granted preliminary approval of the House settlement, indicating that the agreement meets the requirements of Federal Rule of Civil Procedure 23, which mandates that settlements must be fair, reasonable, and adequate. However, this approval is preliminary, and the settlement will now move toward a final approval hearing, tentatively set for April 7, 2025.
The settlement includes provisions for renewed enforcement of NIL rules, aiming to curtail the widespread issue of pay-for-play arrangements that have become common among booster-led NIL collectives. It allows the NCAA and Power Five conferences to establish a “designated enforcement agency” focused on NIL deals involving individuals affiliated with NIL collectives, players’ recruitment, or families contributing more than $50,000 to a university’s athletic department over their lifetime.
Schools will have the option to share up to $23 million annually with their athletes under a capped system, though participation is voluntary, and no institution is required to share revenue. Several basketball-only conferences and FCS commissioners have indicated they do not anticipate many of their schools opting into the settlement. Similarly, many Group of Five programs are not expected to allocate significant, if any, revenue to athletes.
Going forward, Basepath is prepared to assist athletes and institutions in navigating NIL and revenue sharing.
“Our platform is uniquely positioned to streamline these processes, ensuring that athletes receive their rightful compensation in a fair and transparent manner,” said Basepath Co Founder and CEO Thomas Thomas Jr.
Thomas continued, “With the upcoming changes, we are committed to helping universities manage their revenue share agreements effectively, staying compliant with the new regulations while maximizing opportunities for all involved.”
Next steps for the House case include notifying settlement members, who are eligible for either damages payments (for former athletes) or optional revenue sharing (for current athletes). Notifications will be sent via postcards and other means, informing members of their rights under the settlement terms. Athletes who choose to opt out must do so by January 31, 2025, retaining their antitrust claims against the NCAA and Power Five conferences, and preserving other legal claims under labor, employment, and Title IX laws.
Although this preliminary approval is key, final approval may prove to be a more complex process. Potential complications could include petitions to higher courts, including the U.S. Court of Appeals for the Ninth Circuit or the U.S. Supreme Court, to intervene in the case. Additionally, objectors, including athletes, schools, and conferences, will have the opportunity to voice their concerns at the final hearing.