From Sidelines to Salaries: The Game-Changer in College Sports

This week, college athletics took a historic legal turn. The NCAA is nearing a $2.7 billion settlement in the House v. NCAA case, potentially compensating thousands of former student-athletes and rewriting the rules around NIL (Name, Image, and Likeness) rights. At the same time, Colorado passed a first-of-its-kind law requiring colleges to directly pay their athletes, bypassing third-party deals and igniting a national debate. These moves not only challenge the traditional amateur model - they open a floodgate of legal questions around licensing, branding, and income rights for student-athletes. As the playing field shifts, the law is becoming the real MVP.

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ChaseLawyers Newsletter
April 08, 2025

Hi there,

In this edition, we're diving into two big moves that could redefine the economics of college sports - and student-athletes' legal rights in the process.

First, the NCAA is nearing a landmark $2.7 billion settlement in the House v. NCAA case, a potential end to decades of restrictions on compensating student-athletes. If approved, it could mean backpay for thousands and a massive shift in how college athletes profit from their name, image, and likeness (NIL). But the real game-changer might be what's happening at the state level: Colorado just became the first state to require colleges to directly pay athletes, opening a door that’s been legally sealed shut for generations. Together, these moves challenge long-held assumptions about amateurism, raise major compliance questions for schools, and make one thing clear - NIL isn’t just a trend anymore; it’s a new legal frontier.

NCAA Faces $2.7B Settlement Over NIL Backpay

In a historic move, the NCAA is preparing to settle the House v. NCAA antitrust lawsuit for nearly $2.7 billion, a case that could fundamentally reshape the financial model of college sports. The proposed settlement would provide backpay to thousands of former Division I athletes who were barred from profiting off their name, image, and likeness (NIL) before 2021. Legal analysts say the agreement could mark the end of the NCAA’s amateurism model - and usher in a new era where student-athletes are treated as compensated professionals. For current and future athletes, the case could open the door to more structured NIL deals and long-term earnings rights.

Colorado to Require Colleges to Pay Student-Athletes

Colorado just made history by becoming the first state to legally require its public colleges to directly pay student-athletes. Under the new law, set to take effect in 2025, schools will share a portion of athletic department revenues with their players - marking a radical shift from the traditional model where compensation came only from third-party NIL deals. Legal experts say the Colorado law could put pressure on other states and the NCAA to follow suit. But it also raises critical questions about contracts, labor status, and how schools will balance new financial responsibilities with Title IX compliance and existing scholarships.

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INDUSTRY NEWS

Judge wants range of issues addressed in $2.8 billion NCAA settlement before final approval

The NCAA is nearing a $2.7B settlement in a major NIL lawsuit, potentially compensating thousands of former student-athletes banned from profiting off their name, image, and likeness. The move could mark the end of amateurism - and the start of a new legal era in college sports.

New law lets Colorado colleges cut checks to student athletes

Colorado just became the first state to require public colleges to pay student-athletes directly. The new law mandates revenue-sharing from athletic departments, challenging long-standing NCAA policies and sparking legal questions about fairness, contracts, and compliance.

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