NCAA President Gives Financial Breakdown of $2.78B Settlement, Talks Paying Athletes

News emerged Thursday that the NCAA and the Power Five conferences (the ACC, SEC, Big Ten, Big 12 and Pac-12) agreed on a nearly $2.78 billion settlement to settle three federal antitrust cases (House, Hubbard and Carter) and also enable schools to compensate student-athletes directly, per ESPN's Dan Murphy and Pete Thamel.

On Friday, NCAA President Charlie Baker confirmed the proposed settlement in the cases and outlined the payment plan. The NCAA will pay $1.2 billion through "careful expense management, new revenue initiatives and the use of reserves" over 10 years.

Division I conferences will be on the hook for the remaining money. Football Bowl Subdivision conferences will contribute $95 million annually, while Football Championship Subdivision conferences ($37 million annually) and non-football Division I conferences: $34 million annually will cover the rest.

Baker also talked about payments to student-athletes moving forward.

"Additionally, the forward-looking aspect of this settlement includes a revenue-sharing model allowing schools to provide more direct benefits to student-athletes, including for NIL. This model, starting in the 2025-26 fiscal year, proposes that 22% of average Autonomy 5 revenues can be shared with student-athletes, potentially amounting to $1 billion to $1.5 billion annually."

Baker also admitted that the settlement was made to avoid potentially paying even further damages, specifically "treble damages," which he stated could result in "a $9 billion judgment."

That won't happen as the NCAA and conferences pay out back damages and look forward to a new era. There's more work to be done, though.

"This is a massive step forward for student-athletes and college sports, but it does not address every challenge," Baker wrote. "There are still pending legal issues, such as those related to employment with the NLRB and the Johnson case."