The NCAA and its five power conferences have reached an agreement that could fundamentally change the landscape of college sports, paving the way for schools to directly compensate athletes and marking a significant departure from the traditional model of amateurism.

The settlement, which resolves three antitrust cases and includes nearly $2.8 billion in damages, addresses the issue of athletes not being compensated for the use of their name, image, and likeness (NIL). A key component of the agreement is the implementation of a revenue-sharing model, where athletes would receive a portion of the revenue generated by their schools from broadcast rights deals, ticket sales, and sponsorships.

The process for finalizing the settlement involves various steps, including negotiations between lawyers, a hearing before Judge Claudia Wilken, and an opportunity for current athletes to object or opt out. The entire process could take between six and eight months.

If approved, the NCAA would allocate approximately 41% of the damages, with the remaining 59% to be paid by schools over the next decade. The settlement could also lead to changes in how power conferences establish and enforce their own rules.

The agreement has sparked debate, particularly among non-power conferences, over the distribution of financial liability. Critics argue that the proposed formula disproportionately burdens non-power conferences, as a significant portion of the damages would benefit former power conference football and men's basketball players.

Overall, the settlement represents a significant shift in the NCAA's approach to athlete compensation and could have far-reaching implications for college sports.