Are colleges allowed to pay athletes? NCAA agrees to reward players in landmark decision

Colleges will soon be allowed to pay athletes to play. The NCAA and the Power 5 conferences announced Thursday night they have agreed to $2.8 billion to settle a host of antitrust claims.

The deal still must be approved by a federal judge, but should it stand, athletes will be compensated by schools.

“This landmark settlement will bring college sports into the 21st century, with college athletes finally able to receive a fair share of the billions of dollars of revenue that they generate for their schools,” said Steve Berman, one of the lead attorneys for the plaintiffs, via The Guardian. “Our clients are the bedrock of the NCAA’s multibillion-dollar business and finally can be compensated in an equitable and just manner for their extraordinary athletic talents.” he added.

According to the agreement, the NCAA will pay $2.8 billion over 10 years to more than 14,000 former and current college athletes, who say the old rules prevented them from making money.

Also, each school would be permitted to set aside $21 million in revenue sharing with college athletes. The schools will be able to pay players directly, but the school will decide how the money is divided up among sports programs.

Power conferences release joint statement after landmark agreement

Following the historic deal, NCAA President Charlie Baker, ACC Commissioner Jim Phillips, Big Ten Commissioner Tony Petitti, Big 12 Commissioner Brett Yormark, Pac-12 Commissioner Teresa Gould, and SEC Commissioner Greg Sankey all released a joint statement on it.

"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 and provide clarity in college athletics across all divisions for years to come.

"This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students. All of Division I made today's progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our various student-athlete leadership groups to write the next chapter of college sports."

According to the deal, all D-1 athletes dating from 2016 are eligible to receive a share as part of the settlement class.