The NCAA and its five power conferences have agreed to allow schools to pay players directly, marking a significant shift in the 100-plus-year history of college sports. This move, part of a multibillion-dollar settlement to resolve three federal antitrust cases, will redefine the landscape of college athletics.

Under the terms of the agreement, the NCAA will pay over $2.7 billion in damages to past and current athletes over the next decade. A revenue-sharing plan will enable each school to distribute up to $20 million annually to its athletes. If approved by Judge Claudia Wilken, this settlement represents a step in the ongoing case to reform college sports, providing financial benefits to student-athletes and clarifying college athletics rules.

NCAA President Charlie Baker and the commissioners of the five power conferences—ACC, Big Ten, Big 12, SEC and Pac-12—issued a joint statement emphasizing the importance of this settlement. “The five autonomous conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports,” they said, highlighting the long-term benefits for student-athletes and the institution of college sports.

The settlement covers all Division I athletes from 2016 eligible to receive a share of the settlement class. Accepting this share precludes them from suing the NCAA for other potential antitrust violations. It requires them to drop their complaints in the cases of House v. NCAA, Hubbard v. NCAA and Carter v. NCAA.

While the settlement is a victory for athletes, it does not resolve all the legal issues currently facing the NCAA. Athletes and their advocates continue to push for recognition as employees and the right to collectively bargain, which could lead to further changes in revenue-sharing agreements. This week’s agreement potentially reduces the NCAA’s exposure to antitrust litigation, which has driven schools to provide more for their athletes.

Notre Dame President John I. Jenkins acknowledged the necessity of the settlement despite its temporary nature. He called on Congress to pass legislation protecting the unique nature of college sports, affirming that athletes are students rather than employees and shielding colleges from further antitrust lawsuits.

The agreement will require several months for approval, with schools expected to begin sharing revenue in the fall of 2025. The NCAA’s board of governors and leaders from the power conferences have voted to accept the general terms outlined in a 13-page document. As part of the process, athletes will be informed of the potential benefits and given options to object to or opt out of the settlement.

Despite this settlement, other antitrust lawsuits remain unresolved. For instance, former Colorado football player Alex Fontenot is suing the NCAA over TV rights revenue-sharing. The resolution of these ongoing cases will determine the full impact of the current settlement and the future legal landscape of college sports.

The NCAA’s agreement to pay athletes directly is a revolutionary change that marks a new era in college sports. This settlement is a significant step toward providing athletes with financial benefits and stability in college athletics. The next chapter in this evolving story will depend on the approval of the settlement and the ongoing efforts to balance the interests of athletes, schools and the NCAA.

Following news in July that revealed that Oklahoma and Texas were planning to leave the Big 12 for the SEC, things quickly turned on making this a reality. The Big Ten, ACC and Pac-12 are appearing to ally to counter the SEC’s aggressiveness in the changing college athletics landscape.

Recent seismic shifts include name, image, and likeness (NIL), playoff expansion and the Supreme Court ruling that opens the door to antitrust litigation against the NCAA and its membership along with the SEC’s addition of Texas and Oklahoma. All of these factors have created a desire among the three leagues to find philosophical common ground to chart a path forward.

The focal points of the alliance are scheduling academics, governance, and other broad-based issues. However, the main issue is a response to the SEC’s expansion and influence.

Multiple sources allege that the three will formally announce an alliance in the next week.

“This is not down on them [SEC], but given some of the movement that occurred, I think this is the right decision to be made to have that conversation amongst the three of us and to really form this alliance that sort of thinks about things on a more consistent basis than just waiting for our annual NCAA meeting,” Michigan athletic director Warde Manuel told reporters on Thursday, per the Detroit News.

On Wednesday evening, the NCAA made the unprecedented decision to hold its men’s and women’s basketball tournaments without fans because of the ongoing coronavirus crisis.

NCAA president Mark Emmert said in a statement to reporters,

“The NCAA continues to assess the impact of COVID-19 in consultation with public health officials and our COVID-19 advisory panel. Based on their advice and my discussions with the NCAA Board of Governors, I have made the decision to conduct our upcoming championship events, including the Division I men’s and women’s basketball tournaments, with only essential staff and limited family attendance.”

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The president continued, “While I understand how disappointing this is for all fans of our sports, my decision is based on the current understanding of how COVID-19 is progressing in the United States. This decision is in the best interest of public health, including that of coaches, administrators, fans and, most importantly, our student-athletes. We recognize the opportunity to compete in an NCAA national championship is an experience of a lifetime for the students and their families. Today, we will move forward and conduct championships consistent with the current information and will continue to monitor and make adjustments as needed.”

This news came our soon after Ohio’s Gov. Mike DeWine (R) placed a ban that would prevent fans from going to NCAA events in Cleveland and the first four games in Dayton.

Multiple sporting events and associations are making the decision to not allow the public into professional or collegiate games because of the drastic spread of the virus. This includes the Golden State Warriors, European Soccer Leagues, and other collegiate conferences around the country.