A monumental decision was made on Friday night when Judge Claudia Wilken approved the House v. NCAA settlement, which allows for universities to start paying their student-athletes directly.
This takes college athletics as we know it to a whole other level, beyond what it's become with the new age of name, image and likeness (NIL), which had been allowing for third parties to pay student-athletes for the last four years.
The settlement also means the NCAA will be paying $2.8 billion to student-athletes who had competed at the collegiate level from 2016 until now.
Under the settlement, universities will be allowed to distribute up to around $20.5 million at the start.
It was a decision schools had been anticipating and gearing up for. And it comes at a convenient time for Michigan State, particularly, which just hired its new athletic director, J Batt.
On Saturday afternoon, Batt sent out an update to the Spartan community in wake of the settlement. Here's what it reads:
"Spartans,
"This is a truly historic time for college athletics.
"Last night, the House v. NCAA settlement was approved by U.S. District Judge Claudia Wilken. With the approval, athletic departments will be able to directly share revenue (approximately $20.5 million) with student-athletes beginning July 1, 2025, launching a new era in college athletics.
"This is a transformative change – a positive change. It's a good thing, first and foremost, for student-athletes, but also for college athletics as a model, and specifically for Michigan State athletics.
"Opportunities have never been greater for student-athletes to benefit financially from their participation in college athletics. Michigan State is committed to distributing the full amount permitted to student-athletes. Beyond revenue sharing, scholarship limits have been removed, providing institutions the flexibility to provide more educational opportunities, and many of the other benefits previously provided to student-athletes will remain in place.
"The settlement provides a stable future for the college athletics model, ensuring that the opportunities created by college athletics remain in place for years to come. A newly established entity, the College Sports Commission, has been created to ensure compliance with the new rules around roster limits, revenue sharing and student-athlete third-party NIL deals. It will help ensure fairness, transparency and integrity in college sports.
"Furthermore, this transformative change provides opportunities for Michigan State athletics. Opportunities often require good timing, and the timing is excellent for MSU. This new era of college athletics will require additional resources and provide new challenges daily. The key to meeting those challenges will be alignment. With President Guskiewicz's leadership and the support of the Board of Trustees, and the entire Spartan family, we are well positioned not to survive change, but to take advantage of it, to take ground and move forward as we implement the settlement.
"More will be required of all of us than it has in the past. We might be required to work harder or give more. But if everyone does their part, and pulls in the same direction, the opportunities for success will certainly be worth it.
"I look forward to sharing more information with you in the near future.
"For anyone looking to learn more about the House settlement, revenue sharing, or anything else about this new day in college athletics, I would encourage you to visit collegesportscommission.org."
"Thank you for your incredible support of Michigan State athletics and our student-athletes."
"Go Green!
J Batt
Michigan State University Vice President and Director of Athletics."
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