This month, the world of collegiate athletics began a new era, as schools are now legally able to directly pay their athletes.
Judge Claudia Wilken approved the settlement in House v. NCAA on June 6, ending three separate federal antitrust lawsuits aimed at ending the NCAA’s limitations of compensating college athletes. The ruling allows schools to directly pay athletes, creating new dynamics in college athletics that are expected to bring changes to the NCAA.
Starting July 1, schools have a $20.5 million cap that they can pay their athletes, representing 22% of “average annual revenue that FBS-level schools get from ticket sales, broadcast rights and a few other items,” according to ESPN’s Dan Murphy.