What is the NIL settlement? 

On May 23, 2024, the National Collegiate Athletics Association (NCAA) and its “Power 5” athletic conferences settled several significant antitrust class action lawsuits over use of student athletes’ names, images, and likenesses (NIL). This $2.8 billion settlement will drastically change the economic model of college sports and provide billions of dollars in backpay damages and future revenue sharing to current and former college athletes. 

One of the key aspects of the settlement is “back pay,” or payment for work done in the past. This $2.8 billion payment to be made over 10 years is geared toward current and former athletes as far back as 2016 that lost out on possible profits from the NIL landscape post-2021.   

If you were an NCAA athlete who missed out on NIL deals or funds from 2016 forward, you may have a viable claim as part of this settlement. Reach out to our team to determine your path forward. 

Who is eligible for the NIL settlement? 

Current and former NCAA athletes who competed as far back as 2016 and lost out on possible NIL profits are eligible for this settlement.   

To opt into this settlement, eligible athletes must agree not to pursue or continue individual legal actions against the NCAA relating to NIL or other certain antitrust violations. Alternatively, athletes can opt out and join separate pending antitrust cases. 

Our Role for Female College Athletes

The proposed settlement addresses three primary issues: payment of back damages for claims relating to name, image and likeness (NIL), academic-related awards and other benefits; increased benefits from institutions to student-athletes going forward, including additional NIL opportunities for student-athletes directly with the institution; and eliminating scholarships limits in favor of roster limits. 

As of September 5, 2024, the proposed settlement is still not final and the terms will need Court approval. If preliminary approval is granted, there will be a set period of several months in which you can either opt in or opt out and/or object to the terms of the agreement, depending on the Court’s ruling. A final approval hearing will then be held before the Settlement officially goes into effect.  

Our Review of the Proposed Settlement & Objection Filed on Behalf of Female Athletes  

Class Counsel proclaimed they have negotiated a “revolutionary settlement agreement” that will “reshape the economic landscape of college sports” and benefit “future college athletes.” However, upon our review of the proposed settlement, that is only true for male football and basketball players. The bulk of the Settlement is dedicated to compensation for lost “NIL” opportunities, calculated in a way that vastly favors male athletes (especially male football and basketball players). And 90% of the “Additional Compensation” appears to be reserved expressly for football and men’s basketball. Just 5% appears as though it would be allocated to women’s basketball. The remaining 5% would be divided among every other Division I college athlete. A male football player may receive hundreds of thousands of dollars, while a female gymnast might receive $125 or less. 

We filed an objection on behalf of a number of female athletes we represent on September 4, 2024, in the Northern District of California Federal Court. We hope to highlight to the federal judge considering the proposed settlement that female athletes have been disproportionately harmed by the NCAA’s anticompetitive rules and practices, a by-product of discriminatory practices. We joined a previously filed objection by other female athletes, noting that the NCAA’s failure to promote women’s sports depressed the value of female athletes’ NIL opportunities over decades, and the NCAA’s scholarship cap denied women scholarships that would otherwise have been available under Title IX. Yet, instead of compensating those injuries, the Settlement perpetuates the same inequalities it should remedy. The result is a stunning disparity in compensation – well over 90% of the settlement proceeds will be paid to male athletes. We joined in the argument that the Settlement is a major setback for efforts to achieve gender equity in college athletics and should be denied as unfair and not in the interest of justice. We asked the Court to deny preliminary approval of the proposed settlement due to the issues outlined above. At this early stage, it is unclear whether the settlement will be approved, denied, or relitigated and/or allocated.  

If and when a settlement in this matter reaches the stage of final approval and goes into effect, it is likely that the fund division calculations proceed and the Settlement will be “administered,” meaning paid out to claimants. This process will determine how the $2.8 billion will be split amongst the predicted 15,000+ former and current athletes affected by the Settlement. This is a complex, time-consuming process that will likely require legal representation for each claimant to navigate effectively.  

Our Role for Female College Athletes

At The Simpson Tuegel Law Firm, we are a women-owned and led firm that champions women’s rights, successfully representing female athletes affected by sexual abuse, physical abuse, and inequality. Our founder, Michelle Simpson Tuegel, is a former world-ranked athlete in slalom water skiing and passionate advocate for female athletes.  

We have represented hundreds of clients in high-profile cases including the litigation against USA Gymnastics, the U.S. Olympic Committee, and Michigan State by former national team and Olympic gymnasts who were sexually abused by Larry Nassar. Michelle served as one of the lead attorneys and helped negotiate a $380 million settlement with USA Gymnastics, the USOC, and their insurers in December 2021 – a groundbreaking result after a five-year legal battle. We also represented numerous survivors and former athletes against the University of Michigan and the University of Southern California, and we have been at the forefront of Title IX litigation on behalf of female athletes around the nation. 

If you have questions or want to learn more about a potential path forward, contact our team for a free consultation. We would be honored to help you pursue your claim.