May 21, 2024

NCAA Could Face $20B in Damages, Bankruptcy if No Settlement in Antitrust Lawsuit | News, Scores, Highlights, Stats, and Rumors

GLENDALE, ARIZONA - APRIL 08: The NCAA logo on the wall before the National Championship game between the Purdue Boilermakers and the Connecticut Huskies at State Farm Stadium on April 08, 2024 in Glendale, Arizona. (Photo by Mitchell Layton/Getty Images)GLENDALE, ARIZONA - APRIL 08: The NCAA logo on the wall before the National Championship game between the Purdue Boilermakers and the Connecticut Huskies at State Farm Stadium on April 08, 2024 in Glendale, Arizona. (Photo by Mitchell Layton/Getty Images)

Mitchell Layton/Getty Images

If the NCAA and its five energy events reject settlements in the House, Hubbard, and Carter antitrust cases and lose in court, they could lose$ 20 billion in back injuries and face debt danger.

That’s per a two- site report obtained by Ross Dellenger of Yahoo Sports, who relayed the information on Tuesday.

A proposed settlement that the NCAA would pay$ 2. 776 billion in back damages to athletes for their NIL ( name, image, and likeness ) use prior to 2021, when prohibitions against athletes profiting from those were lifted, was detailed in the document, which was presented to ACC leaders at their annual spring meetings.

That$ 2. 776 billion would be paid over 10 years, with about 60 percent extracting from” a reduction in submission to its colleges”, per Dellenger. Dellenger noted other means, particularly reserves and” a substantial reduction in operating costs of up to$ 18 million annually,” as well as other avenues.

If the NCAA rejects that arrangement, loses in court and has to pay that formerly mentioned$ 20 billion in back problems, it would “likely” have to be paid “immediately”, per Dellenger. With such a large bill and without a 10- month grace period, Dellenger noted that the judgment “would, in all likelihood, result in the NCAA and leagues filing bankruptcy”.

Pete Thamel @PeteThamel

We’ve used the income share amount$ 20 million for schools in settlement of House v NCAA/anti- believe claims. Per sources, that’s determined by a certain amount — 22- percent — of different Power conference revenues. The revenue buckets/formula are still being discussed.

Agreeing to a$ 2. 776 billion settlement over 10 years as opposed to potentially losing$ 20 billion ( and facing bankruptcy ) seems like the safer option.



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