Details of a proposed settlement offer and the impact it could have on the NCAA are coming to light, according to a report from Yahoo! Sports’Ross Dellenger.
If there is no agreement, the NCAA could be on the hook for $20 billion in back damages with the risk of filing for bankruptcy, Dellenger reported Tuesday night. The proposed terms also include a new compensation model that would allow schools to share up to $22 million with athletes, as well as a new scholarship and roster structure.
As a result of back damages prior to the NCAA’s interim NIL policy in 2021, documents also showed the NCAA has to pay about $277 million per year over a 10-year period – with 60% of that number coming from reduced distribution and 40% from the NCAA through reserves and reduced operating expenses. During the 10-year stretch, school distribution would drop by $160 million per year, and Dellenger said power conferences are “anticipating” a roughly $1-2 million distribution reduction per year.
This story will be updated.
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