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NCAA Could Face $20B in Damages, Bankruptcy if No Settlement in Antitrust Lawsuit

Paul Kasabian

The NCAA and its five power conferences may lose $20 billion in back damages and risk a bankruptcy filing if they rejected settlements in the House, Hubbard and Carter antitrust cases and lose in court.

That's per a two-page document obtained by Ross Dellenger of Yahoo Sports, who relayed the information on Tuesday.

The document, which was given to ACC leaders at their annual spring meetings, detailed a proposed settlement in which 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 off that were lifted.

That $2.776 billion would be paid over 10 years, with roughly 60 percent deriving from "a reduction in distribution to its schools," per Dellenger. The remaining portion would come via other avenues, with Dellenger noting other means, most notably reserves and "a significant reduction in operating expenses of as much as $18 million annually."

If the NCAA rejects that settlement, loses in court and has to pay that previously mentioned $20 billion in back damages, it would "likely" have to be payable "immediately," per Dellenger. With such a big bill and without a 10-year grace period, Dellenger noted that the judgment "would, in all likelihood, result in the NCAA and leagues filing bankruptcy."

ESPN's Pete Thamel and Dan Murphy previously reported that the Grant House vs. NCAA antitrust lawsuit could result in $2.7 billion for past damages over 10 years. In addition, Thamel reported on a future athlete revenue share process to benefit athletes.

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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