| Subject: The House settlement and the Big Four |
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Buffalo News
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Date Posted: Monday, April 07, 11:13:32am
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College sports is in a state of constant fluidity. It will get some more clarity as early as this week when a final decision is expected to be made on the House settlement.
The House settlement received preliminary approval in October, and if U.S. District Court Judge Claudia Wilken approves the settlement Monday, it will require the NCAA and member institutions to pay nearly $3 billion to current and former athletes through a revenue-sharing budget, for use of their name, image and likeness (NIL) rights.
Here’s a look at some details about the House settlement, and how it will impact athletic programs at the University at Buffalo, Canisius, Niagara and St. Bonaventure.
What is the House settlement?
The House, Carter and Hubbard antitrust settlement – commonly referred to as the House settlement – is a revenue-sharing plan that details not only how colleges would directly pay current athletes and athletes who competed between June 2016 and September 2024 for the first time but also how colleges could take on more costs in the form of more scholarship athletes per team.
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The House settlement also will have roster limits for teams, rather than scholarship limits. Yahoo! Sports reported in July 2024 that schools are allowed to offer a scholarship to each player on a sport’s roster up to the new roster limits. Just under 790 new scholarships would be available in more than 40 NCAA sports listed in the settlement. Football, for example, would have a roster limit of 105 after previously having an 85-scholarship limit.
Who has opted in from the Big 4?
UB, Niagara and St. Bonaventure have opted into the House settlement, while Canisius will not opt into it for the 2025-26 school year.
What does it mean to ‘opt in’?
Schools and athletic programs that opt into the House settlement determine how payment is distributed among athletes. Athletes at schools that do not opt in must be compensated by NIL proceeds from external sources as opposed to being paid by the school.
Schools also can be directly involved in negotiating NIL deals for their athletes, but deals signed with an outside third party and worth at least $600 would be required to be reported to the school and to an outside clearinghouse.
What will this cost Big 4 schools?
Each school that opts in is permitted to share up to a little more than $20 million annually over the next 10 years in a payout fund. That number will vary for each school, and it hinges on several factors, including the number of Division I teams each school sponsors and the amount of athletic aid distributed by schools.
Of the Big 4 schools, only St. Bonaventure has stated a figure for its payout. The athletic department said in February it will contribute an estimated $263,000 per year over the next 10 years to the payout fund and adhere to new roster and scholarship limits to fulfill its part of the financial settlement.
Where will the money come from?
UB athletic director Mark Alnutt told The Buffalo News in February that it is planning to lean on philanthropic efforts (fundraising). UB also is selling corporate naming rights to Alumni Arena and UB Stadium.
Niagara athletic director Simon Gray said the school will explore fundraising as well as other potential revenue streams.
Schools across the country that are opting into the House settlement are creating new revenue streams to help offset the costs of paying current and former athletes, including instituting alcohol sales at events, hosting concerts at on-campus venues and adding ticket and concessions surcharges.
What if settlement is approved?
If the House settlement is approved, schools will begin making payments July 1. They can make financial offers to current and prospective athletes contingent on final settlement approval.
Still, if the House settlement is approved, objections to the ruling could continue with appeals. ExtraPoints.com reported in February that the House settlement already faces objections, including many that center on roster limits, antitrust concerns and gender equity/Title IX.
What if it isn’t approved?
Initially, that’s anyone’s best guess. The NCAA released a 35-question document in December titled “Impact of the Proposed Settlement on Division I Institutions” – but did not include a question or an answer to “what happens if the House settlement is not approved?”
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