US judge approves settlement allowing NCAA schools to pay athletes

7/6/2025 12:16

A U.S. judge on Friday granted final approval to a $2.8 billion settlement with the National Collegiate Athletic Association that will allow schools for the first time to compensate student athletes for past and future commercial use of their names, images and likenesses.



The settlement, approved in a ruling by U.S. District Judge Claudia Wilken in the Oakland, California, federal court, resolves long-running litigation between the NCAA and student athletes.



"Despite some compromises, the settlement agreement nevertheless will result in extraordinary relief for members of the settlement classes," Wilken wrote. She said the deal will "permit levels and types of student-athlete compensation that have never been permitted in the history of college sports."



The ruling marked a "historic day for college sports and the rights of athletes," the lead attorneys for the plaintiffs, Steve Berman and Jeffrey Kessler, said in a statement.



In a statement, NCAA President Charlie Baker welcomed the judge's ruling.



"Student-athletes will benefit from the rich opportunities they enjoy now, plus far more scholarship opportunities, landmark financial benefits and a streamlined NCAA to support them," Baker said.



The NCAA denied any wrongdoing in agreeing to settle.