On October 7, Judge Claudia Wilken granted preliminary approval to the proposed $2.7 billion settlement in House v. NCAA. This is not Judge Wilken’s first foray with landmark sports law decisions – she famously sided with the plaintiffs in O’Bannon v. NCAA, holding that the NCAA’s rules prohibiting athletes from being paid for use of their NIL was an unreasonable restraint on trade in violation of antitrust laws. If finalized, this settlement will not only allow student-athletes to receive backpay for NIL compensation, but it would also allow a revenue-sharing system where colleges could pay their athletes directly.  

Preliminary approval of the settlement agreement simply means that Judge Wilken will likely be able to approve the settlement in accordance with Fed. R. Civ. P. 23, meaning the class action settlement is fair, reasonable, and adequate subject to further consideration at a Fairness Hearing in April. There, Judge Wilken will also determine (1) whether to enter final judgment; (2) whether the proposed distribution plan should be approved; (3) the amount of fees and expenses that should be awarded to Class Council; (4) the amount of service awards that should be provided to the class representatives. Until then, all class members are temporarily barred and enjoined from instituting or continuing prosecution subsequent to the July 26, 2024, version of the Settlement Agreement.

The order addresses two groups of classes. The “Settlement Classes” addresses the revenue-sharing aspect of House, and thus generally applies to all classes identified in the order as well as subsequent classes of athletes. The other, “Damages Settlement Classes,” addresses the backpay aspect of House, limiting potential class members to 2016. While student-athletes can object to the Settlement Classes, they can only completely opt out of the Damages Settlement Class.

The Settlement Classes

This class comprises of all student-athletes who have, are, or will compete on a D1 athletic team at any time between June 15, 2020, until the end of the Injunctive Relief Settlement Term, defined as ten academic years following the final approval of the settlement. Thus, if Judge Wilken approves the settlement at the Fairness Hearing in April 2025, the class will continue until 2035. The Court designated Grant House, DeWayne Carter, Nya Harrison, Sedona Prince, and Nicholas Solomon as the class representatives, but noted that at least one college athlete would be named a class representative for each year of the Settlement Term.

Any member of the Settlement Classes may object to any aspect of the Settlement by sending a letter containing certain information like the objections themselves and whether the objector or his/her lawyer wishes to speak at the Fairness Hearing. Judge Wilken decides whether the objection will be heard during the Fairness Hearing.

The Damages Classes

The Court certified two classes with the same requirements, but addressed to different sets of potential class members: the “Settlement Football and Men’s Basketball Class” and “Settlement Women’s Basketball Class” includes all student-athletes who (1) have or will receive full grant in aid (GIA) scholarships; (2) have, are, or will compete on a FBS football team or D1 men’s or women’s basketball team; (3) at one of the Power Five Conferences; (4) who have or will be declared initially eligible for D1 competition between June 15, 2016, until September 15, 2024. The Court named Tymir Oliver and DeWayne Carter as the class representatives in the former settlement class, and Sedona Prince in the latter.

Finally, the Court created a “catch all” class excluding the members of the football and basketball classes mentioned above. The “Settlement Additional Sports Class” includes all D1 student-athletes who (1) did, have, or will compete on a D1 athletic time; (2) who have or will be declared initially ineligible for competition; (3) at any time between June 15, 2016, until September 5, 2024. Grant House, Nya Harrison, and Nicholas Solomon are the designated class representatives. Note that the Additional Sports Class imposes the same requirements as the Football and Basketball classes, but the latter classes impose the additional grant in aid requirement.

Student-athletes have the option to opt out of the Damages Settlement Class by sending a letter to the Settlement Administrator explicitly stating, “I want to opt out from the damages classes in In re: College Athlete NIL Litigation, Case No. 4:20-cv-03919” by January 31, 2025. “Opting out” means that (1) the person has no rights under the Amended Settlement Agreement; (2) he/she cannot receive any settlement funds; (3) he/she shall not be bound by the final judgment.

Administrative Logistics

NCAA member schools must provide reasonably ascertainable information regarding the name and last-known contact information of the D1 student-athletes who meet the class criteria to the Settlement Administrator. Judge Wilkin appointed Verita Global, LLC, a firm specializing in legal settlements and claim administration.  

The Settlement Administrator must fulfill certain notice requirements by the notice date, October 18. First, create a public, case-specific website that will make several court documents available, including the Amended Settlement Agreement, Preliminary Approval Order, Long Form Notice, Claim Form, the reports from Plaintiffs’ economic expert Dr. Daniel Rascher, and information on how to submit claims and receive payment. The second and third responsibilities involve actively notifying the potential class members via email and postcard.

The remaining steps and responsibilities are organized by due date in a chart provided in the opinion. The notice campaign and claims period begin on October 18. An allocation estimate will be available December 17 – this is also when all motions for attorneys’ fees are due. On January 31, all exclusions and objections are due and the claim period closes. The motion for final approval and response to objections is due by March 3, giving Judge Wilken sufficient time to make a decision before the Final Approval Hearing on April 7. Any member of the Settlement Classes may attend the Fairness Hearing but can only speak if the Court allows it by approving the request stated in the Settlement Classes objection.

Read the Order Granting Plaintiffs’ Motion for Preliminary Settlement Approval in full here.

Keeton Cross is a 3L at Cumberland School of Law. She can be found on LinkedIn and on X (keeton_cross)