A historic payout to generations of college athletes is now in legal limbo, as a $2.8 billion settlement blessing from a federal judge runs headfirst into a wave of appeals.
Just days after a California judge gave the green light to a sweeping deal between the NCAA and hundreds of thousands of current and former student-athletes, opponents filed their fourth formal challenge—this time at the Ninth Circuit Court of Appeals in San Francisco. The move temporarily freezes the backpay portion of the agreement while higher courts take a closer look at the objections.
At the heart of the settlement is a seismic shift in college sports economics: for the first time, schools will be allowed to pay athletes directly for the commercial use of their name, image, and likeness (NIL). That forward-looking part of the deal—hailed as a watershed moment—will still proceed. But the $2.8 billion in retroactive damages? That’s now stuck in judicial traffic.
Some critics argue the payout structure tilts unfairly in favor of male athletes, potentially violating Title IX, the federal law that bars sex-based discrimination in education. The architects of the settlement aren’t having it.
“If they really believe they have a Title IX case, then file it,” said Steve Berman, one of the lead attorneys for the athlete class. “Don’t hold hostage money that could transform lives.”
The origins of the settlement lie in a trio of lawsuits that challenged the NCAA’s long-standing amateurism rules, which forbade compensation beyond scholarships. Those restrictions, the plaintiffs argued, flouted antitrust laws. The resulting deal not only offers billions in backpay but also unlocks the gates for athletes to share in the revenue their talents generate—most of it coming from TV deals and licensing.
The NCAA, while admitting no guilt, says the settlement offers stability to a college sports landscape that’s been tilting and trembling under legal pressure for years.
Next up? The Ninth Circuit is expected to group the appeals and set a schedule for written arguments. A decision may not land until 2026—and no one’s ruling out a cameo from the U.S. Supreme Court before it’s all said and done.
For now, the money waits. So do the athletes. And college sports? Still in the thick of its biggest reckoning yet.
