Recently, U.S. District Judge Claudia Wilken questioned critical elements of the NCAA’s $2.7 billion settlement agreement designated to allow schools to pay student-athletes and sent it back for revisions.
During a hearing in Oakland Federal Court, Judge Wilken raised concerns about potential restrictions on athlete payments and indicated she was not ready to grant preliminary approval. She instructed the NCAA and attorneys to address her concerns and provide a revised proposal within three weeks.
The settlement, submitted for approval in July, aims to resolve three lawsuits alleging that NCAA rules prohibiting athlete payments violated antitrust laws. It includes compensation for past damages and would permit schools to pay student-athletes directly for the first time. The NCAA has denied any wrongdoing.
In response, the NCAA stated it would “carefully consider” the judge’s questions about the settlement, calling it a product of extensive negotiations intended to stabilise and sustain college sports. Jeffery Kessler, co-lead counsel for the plaintiffs, expressed readiness to negotiate further with the NCAA to address the judge’s concerns.
Judge Wilken specifically noted issues with provisions that might limit third-party payments related to athletes’ name, image and likeness rights, particularly regarding “NIL collectives” that fund NIL deals. She also questioned a proposed $21 million annual cap on NIL-related funds distributed by schools.
Kessler indicated that the plaintiffs had hoped for a settlement without such caps and were prepared to negotiate changes. Wilken acknowledged the possibility of a revised settlement but noted that if an agreement couldn’t be reached, she would set a trial date.
NCAA attorney Rakesh Kilaru conceded that further work is needed to determine if the revised deal can be reached.