SHREVEPORT, La. ( KTAL/KMSS ) – A landmark settlement was reached on June 6 in a class action lawsuit against the NCAA.
New Orleans sports attorney, Fritz Metzinger, from the Stone Pigman Law Firm, shares how the settlement will change the landscape of college sports forever.
"Obviously, this is a huge landmark and a huge win for the players," said Metzinger.
Metzinger says he’s been following the case for years, and as part of the settlement, former NCAA athletes from 2016 to 2024 who opted into the class action will receive a pool of about $2.576 billion, which will be paid out over 10 years from the NCAA and NCAA Division I schools.
The settlement also establishes a revenue-sharing model for all future athletes.
A forward-looking revenue sharing model that will allow Division I schools to share up to $20.5 million, at least in the first year, up to $20.5 million in athletic department revenue directly with their athletes," said Metzinger. "Creating what is in effect what many people have called a salary cap for student athletes.
Schools can spend the $20.5 million however they like, which Metzinger says may be a concern for sports that do not generate revenue.
"I think there is a concern from, you know, athletes who participate in schools that don’t generate as much revenue that to pay student athletes that are in the bigger revenue generating sports, they’re going to cut either entire programs or cut athletes from programs as a result of this decision," he said.
Metzinger says that direct payments to athletes will help curb NIL money, which he says many legal observers have referred to as disguised pay-for-play.
"What has been happening is that boosters and collectives have been using NIL payments to pay really, really big sums of money to get athletes to come to their schools. To transfer to their schools, and to perform at a high level," he said.
As part of the settlement, a new regulatory body, the College Sports Commission, will now oversee NIL deals. The commission is independent of the NCAA but is comprised of individuals selected by the NCAA’s six largest conferences: the ACC, Big Ten, Big 12, Pac-12, and SEC.
They’re going to determine whether the deal is with a booster or a collective, and if it is, they’re going to try to see if it’s for a valid business purpose," said Metzinger. "Which basically means as, you know, is a student athlete appearing in commercials or providing some sort of service to the company. And is the athlete getting paid an amount that you would expect based on the services.
He says that universities like Louisiana State, which have multiple successful sports programs, will have to make some interesting decisions.
I think LSU is a fascinating case study right now," he said. "I think LSU has indicated that they’re going to follow what most schools are doing, which is 75% to football, 15% or so to men’s basketball, 5% to women’s basketball, and 5% or so to the remaining other sports.
The change is happening fast. Starting July 1, schools are required to report how the revenue is spent.
"And so yeah, this upcoming football season we will be in a revenue sharing era," he said.
Metzinger believes that Congress will ultimately have to create laws governing the NCAA to avoid years of lawsuits.
The $20.5 million being shared with the athletes comes from media rights, corporate sponsorships, and ticket sales, according to the settlement.
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