The NCAA and Power 5 conference have agreed to pay members of a class-action lawsuit a $208.7 million settlement to players who played before cost of attendance stipend were implemented or did not receive one since they have been. It boils down to over $6,700 dollars per athlete, provided they played four years between 2009-2017. The lawsuit was initially filed by a former West Virginia running back, and the payout is not limited to just football players.
Filed in 2014 by former West Virginia football player Shawne Alston and later consolidated with other cases, the lawsuit claimed the NCAA and conferences violated antitrust law by capping the value of an athletic scholarship at less than the actual cost of attending college. The NCAA and conferences have since changed their rule to allow cost-of-attendance stipends.
The settlement must still be approved by a federal judge. If approved, it would be the second-largest settlement in NCAA history. The Jason White case involving cost of attendance in 2008 resulted in a $230 million settlement.
NCAA settles with aggrieved players for $209 Million. Amazing how much NCAA will pay so it won't have to pay. https://t.co/2USA1q1Hg7— Jay Bilas (@JayBilas) February 4, 2017
CBS reports that the money will come from the NCAA’s reserve funds, and none of the conferences will have to pay out. It is notable that the conferences are included in this lawsuit. The NCAA often deflects criticism and legal actions by asserting that they are simply an amalgamation of their member schools. Alston’s suit included both.