NCAA faces appeals after judge approves landmark $2.8 billion settlement

By Mike Scarcella

July 3 (Reuters) - The National Collegiate Athletic Association is facing a growing number of new court challenges after a U.S. judge in California signed off on a landmark multibillion-dollar settlement that pays athletes for the commercial use of their name, image and likeness.

The latest of four appeals so far was filed on Wednesday to the San Francisco-based 9th U.S. Circuit Court of Appeals. The appeals will keep part of the settlement on hold while the court weighs objections to the deal.

WHY IT MATTERS

The settlement would allow U.S. colleges for the first time to pay current and former athletes for their work, and was heralded by some lawyers and industry observers as a historic new chapter for college athletics. That part of the settlement will move ahead.

The appeals, however, will delay $2.8 billion in past damages to class members for at least several months, but more likely for a year or more.

Some opponents of the deal in the lower courts asserted the deal unfairly benefits male players, in violation of a provision of federal law known as Title IX. That measure prohibits discrimination on the basis of sex in education programs.

CONTEXT

The settlement, covering hundreds of thousands of current and former students since 2016, resolved three lawsuits that claimed NCAA rules barring payments to athletes violated U.S. antitrust law.

The plaintiffs' lawyers have estimated the deal also would provide tens of billions of dollars to class members over the next 10 years. Schools will be allowed to pay athletes from funds that universities receive from broadcasts and other commercial sources. The NCAA has denied any wrongdoing, and said the settlement provides "significant stability to college sports."

KEY QUOTE

“If these lawyers believe that a Title IX case will succeed, they should bring it and not hijack payments to college athletes that could be life changing,” said Steve Berman, a lead attorney for the class of athletes who negotiated the settlement.

WHAT’S NEXT

The 9th Circuit could consolidate the appeals and set a briefing schedule to let the opposing lawyers make their legal arguments. The court will set a hearing date.

A ruling on the merits could be expected in 2026, given the complexity of the case. Whatever the court decides, the U.S. Supreme Court ultimately could have the final say.