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UNITED STATES. In an unprecedented decision, federal judge Claudia Wilken approved this Friday the legal agreement that allows universities in the United States to pay their college athletes directly, marking the beginning of a new era in collegiate sports. The agreement, known as The House v. NCAA, ends three federal lawsuits for antitrust practices against the NCAA, which for years limited the income of Division I athletes.
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This radical change transforms the traditional structure of college sports in the country, and will officially begin on July 1st. From that date, institutions will be able to directly compensate their athletes with an annual limit estimated at 20.5 million dollars per university in the 2025-2026 season, a figure that will increase progressively over the next 10 years.
In addition, the NCAA will have to pay approximately $2.8 billion in retroactive compensation to athletes who have competed since 2016. These payments will be added to the scholarships and benefits that student-athletes already receive.
The agreement also includes the creation of a new independent organization, called the Collegiate Sports Commission, which will be responsible for overseeing payments, monitoring compliance with the new rules, and controlling name, image, and likeness (NIL) agreements. This commission will be led by Bryan Seeley, a former MLB executive, who was named CEO of the entity this very Friday.
Although the agreement represents a major step forward, open debates still exist regarding the labor status of athletes and whether they should be considered employees with the right to unionize. The NCAA and universities continue to request a federal law from Congress that provides an antitrust exemption and clearly defines the limits of compensation and player transfers.
“This is new ground for everyone,” said NCAA president Charlie Baker. “It’s important that we seize this opportunity to generate lasting change in college sports.”
This decision represents a turning point in the history of collegiate sports, opening the door to a fairer and more modern model for the thousands of athletes who are part of the main university competitions in the United States.
