Back Pay

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Former players seek settlement for back pay as colleges start to pay student athletes
NBC Newsยท 2025-07-01 01:00
Legal Challenge & Settlement Overview - A lawsuit challenges the NCAA settlement, which allows direct payments to athletes for NIL (Name, Image, Likeness) use, estimating $20 million in revenue sharing annually [2] - The settlement includes $2.8 billion in back pay for approximately 400,000 former athletes, which is a point of contention in the lawsuit [3] - The judge overseeing the case acknowledged Title IX related arguments but allowed the settlement to proceed as an antitrust case, leaving the door open for future Title IX challenges [11][12] Title IX & Gender Equality Concerns - Plaintiffs argue the revenue distribution underestimates the value female athletes bring to universities and violates Title IX, the federal law barring sex-based discrimination on college campuses [2][4] - Women's basketball, the top-listed women's sport, receives 1.1% of the revenue pie, significantly less than men's football and basketball, which receive over 90% combined [4] - One plaintiff was estimated to receive around $400 in back pay, highlighting the disparity [5] - Female athletes feel they are settling for "scraps" and deserve more, seeking a bigger seat at the table [7] Proposed Funding Formula - Plaintiffs propose a specific formula for broadcast compensation and athlete service compensation, allocating funds based on the ratio of men to women in the athlete pool each year [9][10] - For example, if men comprise 60% of the athlete pool, they would receive 60% of the designated funding, with women receiving the remaining 40% [10] NCAA's Perspective - The NCAA considers the settlement a "massive win" for student-athletes, enabling schools to provide direct financial benefits totaling nearly 50% of athletics department revenue [6]