Colleges are now free to pay their athletes directly

Columbia, SC (ESPN) — Schools are now free to begin paying their athletes directly, marking the dawn of a new era in college sports. It was all brought about by a multibillion-dollar legal settlement that was formally approved earlier Friday. The House v. NCAA settlement ends Three separate federal antitrust lawsuits, all of which claimed the NCAA was illegally limiting the earning power of college athletes.

The NCAA will pay nearly $2.8 billion in back damages over the next 10 years to athletes who competed in college at any time. The dates range from 2016 through today. Moving forward, each school can pay its athletes up to a certain limit.

The annual cap is expected to start at roughly $20.5 million per school in 2025-26 and increase every year during the decade-long deal.
These new payments are in addition to scholarships and other benefits the athletes already receive.