A recent appeal filed in federal court could delay the long-anticipated payout of a historic $2.8 billion antitrust settlement between the NCAA, the Power Five conferences, and current and former college athletes. At the heart of the dispute: a group of eight female athletes is challenging how the more than $2 billion in damages will be distributed, arguing that the model unfairly favors male athletes and violates federal gender equity laws.
Why Female Athletes Are Appealing the Settlement
On June 11, attorneys for the objecting athletes submitted a notice of appeal to the 9th U.S. Circuit Court of Appeals. They’re not disputing the broader outcome of the settlement — which allows schools to begin paying athletes directly for their name, image, and likeness (NIL) beginning July 1 — but they are challenging the fairness of the damages distribution.
The current model, designed by economic experts for the plaintiffs, directs about 90% of the $2 billion in back damages to athletes in football and men’s basketball. That’s because these sports were deemed to have historically generated the bulk of NIL value. The objecting athletes argue this formula disregards Title IX, the federal law requiring gender equity in educational programs, including athletics.
Their argument rests on the idea that, had NIL compensation been allowed earlier, schools would have had to distribute payments equitably among male and female athletes under Title IX requirements.
Judge’s Ruling on Title IX Claims
U.S. District Judge Claudia Wilken, who approved the settlement on June 6, rejected the Title IX-based objections. She ruled that Title IX does not apply to how damages from a private antitrust case are allocated by a claims administrator.
In her words: “The objectors have cited no authority that Title IX applies to damages awards distributions or that damages distributions made by a claims administrator are subject to Title IX.” Essentially, she concluded that the law mandates gender equity in educational institutions, not in court-administered financial settlements.
Potential Impact on Settlement Payments
The legal appeal puts a significant portion of the payout on hold. While the NCAA and the Power Five are still expected to begin funding the damages pool, those payments will go into escrow until the appeals process is complete. That means tens of thousands of athletes — many of whom have waited years for compensation — will not receive a dime until the legal dispute is resolved.
Additionally, the plaintiffs’ attorneys, who have requested hundreds of millions in legal fees from the pool, will also have to wait.
Given the typical pace of the federal appeals process, it could take months or even over a year before the case is fully resolved, depending on how the 9th Circuit rules.
Lawyers on Both Sides Speak Out
The objecting athletes’ attorneys, John Clune and Ashly Hare, maintain that they support a settlement in principle — just not one that they believe violates federal law. They say the current model is built on an “error to the tune of $1.1 billion” that could cause long-term harm to women’s sports.
“This is a football and basketball damages settlement. Period,” said Clune and Hare. “Title IX was created to reign in efforts such as these.”
On the other hand, lead plaintiffs’ attorney Steve Berman criticized the appeal as a delay tactic that harms the very athletes the case was meant to benefit.
“This wasn’t a Title IX case, it was an antitrust case,” Berman said. “If these lawyers think the Title IX case was so great, they should bring it and not hijack the payments to college athletes.”
What Happens Next?
The appeal process will now move forward in the 9th Circuit, where both sides will submit briefs and potentially engage in oral arguments. During this time, the funds will be held in escrow. While the final resolution remains uncertain, what’s clear is that the battle over fair compensation in college sports is far from over — and the ripple effects could be felt across both men’s and women’s athletics.
FAQs
What is the total value of the NCAA settlement?
The total settlement is approximately $2.8 billion, with over $2 billion allocated for athlete compensation.
What is the basis of the female athletes’ appeal?
They argue the damages distribution violates Title IX by disproportionately favoring male athletes in football and men’s basketball.
Will athletes receive payments while the appeal is ongoing?
No. Damages payments will be held in escrow until the appeal is resolved.