Judge puts $2.78 billion NCAA settlement on hold

U.S. District Judge Claudia Wilken has put a proposed $2.78 billion settlement regarding the House v. NCAA antitrust case on hold due to concerns about its implications for name, image, and likeness (NIL) payments to student-athletes. During a court session in Oakland, California, she expressed reservations about third-party NIL restrictions that could limit future opportunities for athletes. Wilken questioned NCAA attorney Rakesh Kilaru about whether the settlement would lead to the organization paying athletes directly, which Kilaru denied, maintaining that pay-for-play remains against NCAA rules. The judge highlighted the potential impact of the pending revenue agreement, which is set to last for ten years, on future college athletes. She noted that while schools may not be obligated to pay NIL benefits, boosters and third parties are willing to provide such payments, effectively serving as salaries for athletes. Wilken's concerns indicate a need for a revision of the settlement terms to ensure that athletes' rights and opportunities are not compromised. Following the court session, Jeffrey Kessler, one of the lead attorneys for the plaintiffs, stated that they are open to making the necessary changes to the settlement. He emphasized that the responsibility now lies with the NCAA to address the judge's concerns. If the NCAA fails to reach an agreement, the case may revert to trial, presenting a significant decision point for the organization. The outcome of this legal battle could have far-reaching implications for the NCAA and its athletes, particularly regarding the evolving landscape of NIL payments and the financial rights of student-athletes in collegiate sports.