House v. NCAA lawsuit: Judge Wilken indicates at approving the $2.75B settlement if 2 important changes are made: Reports

The House vs NCAA lawsuit has reached an important benchmark. The final House settlement hearing is over.

Next, the Judge could potentially approve the NCAA’s House settlement. However, reports indicate that two important changes must be made before it becomes a formality.

According to Ross Dellenger, Judge Claudia Wilken indicated that she would approve the NCAA’s House settlement if roster limits are changed (possibly phasing them in) and future athletes are included in the class. Once these changes are made, the settlement will likely be approved.

What's the significance of the House v. NCAA lawsuit?

The House v. NCAA lawsuit is the final bridge before college athletes in the United States of America are paid directly by their universities. These funds are separate from NIL deals, which have been legal since 2021.

The suit is currently before California Judge Claudia Wilken of the Northern District of California. If approved, the settlement will allow programs to directly pay athletes through approximately $20.5 million in revenue sharing during the 2025-26 athletic year. This would effectively end the amateur model that has defined college sports for well over a century.

Furthermore, the New York Times reports that almost $2.8 billion will be set aside as back payment damages for athletes dating back to 2016 who didn't have the opportunity to be compensated for their name, image and likeness (NIL). This suit is set to change the NCAA forever.

So, what's next for the NCAA?

Collegiate sports are on the verge of becoming professional, allowing players to earn a regularized salary without waiting for the big leagues. This will significantly reduce the role of the NCAA as the majority governing body of collegiate sports.

According to the New York Times, while the NCAA's power will diminish, it will still be tasked with running national championships in over 90 sports. It will also still be the primary governing body for March Madness and will guide the rules and regulations in three divisions.

Furthermore, the NCAA will remain in charge of standardizing and administering sports rules and monitoring athletes' academic eligibility.