Will the $2.8 billion payout stop after women athletes file an appeal of the House v. NCAA settlement approval? Everything you need to know

Days after the House v. NCAA settlement received its approval, the class action lawsuit is set to face its first hurdle. According to reports, a group of women’s sports athletes is preparing to appeal a recent court decision, bringing some uncertainty to the planned payout.

The women argue that the damages payment structure violates Title IX by failing to ensure gender equity. This brings a new dimension to the class action lawsuit that was filed in the United States District Court for the Northern District of California in 2020.

Will the women athletes’ appeal stop the House v. NCAA settlement payout?

With the appeal filed by the group of women athletes, the damage payment, which is the hallmark of the House v. NCAA lawsuit, won't be able to proceed as planned. NCAA attorney Rakesh Kilaru noted that the funds will remain on hold until the appeals process is resolved.

The settlement is set to pay out a total of $2.8 billion to former college athletes who played in NCAA schools after 2016. The president of the governing body, Charlie Baker, informed Yahoo Sports that the organization is set to distribute $285 million, subject to court approval.

Despite the challenge brought about by the appeal, Kilaru is optimistic that the settlement will be upheld. The recent development has raised concerns that the approved House v. NCAA settlement could be overturned.

“Judge Wilken wrote a really thorough order -- 76 pages," Kilaru told CBS Sports’ Brandon Marcello on Wednesday. "I think she addressed all the issues really persuasively.

“It's somewhat notable that this was actually not an issue that we even argued at the final approval hearing because I think typically, when you're challenging back damages, your kind of logical remedy is to opt out of the settlement and not be bound by it, as opposed to challenging it.”

The argument of the women's athletes on the House v. NCAA settlement

The appeal by the group of women's athletes argues that the distribution approved in the House v. NCAA settlement on Friday is inaccurate and violates federal laws. Eight athletes have reportedly signed onto the motion to appeal, with four more potentially to join.

"The House Settlement allocates $2.4 billion to men and only $102 million to women," Leigh Ernst Friestedt, who's set to lead the appeal of the four other athletes, wrote in a statement to CBS Sports.

"This significant disparity constitutes a violation of Title IX. Charlotte, Mai, Katherine and Brooke look forward to the opportunity to appeal this decision with the 9th Circuit on behalf of millions of female student-athletes."

While the appeal will temporarily pause the distribution of damage payments, it is not expected to affect the rollout of revenue sharing, which is set to begin on July 1. The settlement ushers in a new era in terms of compensation in collegiate athletics.