NCAA President Charlie Baker sent a memo to members of the NCAA on Friday, and he stated the settlement of the House v. NCAA, Hubbard v. NCAA and Carter v. NCAA cases will help “in our ongoing effort to create a stable, sustainable and equitable model for the future of college sports.” The Ohio State athletic department published the memo, and a full read of it is below.

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The NCAA and each of the Power 5 conferences jointly announced Thursday that schools can share “up to $22 million with student-athletes per year.” Baker acknowledged there will be future compensation for Division I student-athletes and back damages, though, he thanked everyone within Division I for their “dedication and hard work in getting us to this point.” Baker stated “there is still much work to be done” and NCAA members’ “continued support and collaboration will be crucial.”

Baker stated the “nearly $2.78 billion” in back damages from the settlement will be split 42% paid by the NCAA and 58% among the Division I conferences “based on their distributions over the past nine years.” It will be paid over 10 years, about $280 million per year.

“This will be funded through careful expense management, new revenue initiatives and the use of reserves,” Baker stated.

Baker bulleted three “specific contributions” from a trio of sources, as outlined below.

• Football Bowl Subdivision conferences: $95 million annually (33%).
• Football Championship Subdivision conferences: $37 million annually (13%).
• Nonfootball Division I conferences: $34 million annually (12%).

Had the settlement not happened and trials unfolded, Baker stated the NCAA could have been on the hook to pay potentially $9 billion in “treble damages,” which he stated “would be financially devastating and unsustainable.”

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Baker also listed “several critical objectives” reached through the settlement, as outlined below.

1. It replaces potentially crippling lawsuits with a negotiated settlement and a 10-year injunction.
2. It enables student-athletes to receive up to 22% of the average DI Power 5 athletics revenues — in addition to tuition and other benefits currently provided. Adding all these benefits together, many A5 schools would be devoting nearly 50% of athletics revenue to student-athletes. 
3. It ends decades of antitrust litigation, stabilizing college sports while permitting conferences and the NCAA to enforce rules that set a level playing field and emphasize the educational mission of college athletics.
4. It binds DI together, enabling the NCAA to contribute $120 million annually for 10 years toward back damages.

While Baker stated in closing that the settlement is “a massive step forward for student-athletes and college sports,” he accompanied that sentiment by acknowledging “it does not address every challenge.” Baker stated pending legal issues “such as those related to employment with the NLRB and the Johnson case” are among the obstacles still in need of a solution.

There is the possibility that “if the NCAA outperforms revenue projections and has unplanned surplus net assets, there will be an opportunity to determine how those additional assets can be used to offset the local impact of the damages payment,” Baker stated. 

The NCAA aims “to provide more direct benefits to student-athletes,” and Baker stated “this is a vital opportunity to positively reshape the future of college sports” amid the challenges ahead.

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Here is Baker’s full memo, via Ohio State.

“Good afternoon,

“I would like to share an update on an important step forward in our ongoing effort to create a stable, sustainable and equitable model for the future of college sports. We have now reached a proposed settlement in three major cases — House, Hubbard and Carter — involving back damages and future compensation for Division I student-athletes. 

“I want to extend my heartfelt thanks to all of you in Division I for your dedication and hard work in getting us to this point. Your efforts have been instrumental in negotiating this complex settlement and in shaping a more stable future for Division I college athletics. We acknowledge that there is still much work to be done, and your continued support and collaboration will be crucial as we implement these changes.

“The media has covered these lawsuits extensively, with varying degrees of accuracy. The plaintiffs’ demand for back damages is substantial. In the House case alone, the plaintiffs sought approximately $3 billion. If the NCAA were to lose at trial, the courts could impose “treble damages,” potentially resulting in a $9 billion judgment. Such a verdict would be financially devastating and unsustainable.

“The lawsuits address three main issues: compensation for academic-related expenses; name, image, and likeness opportunities; and restrictions on scholarships. We have managed to negotiate the total back damages for these cases down to nearly $2.78 billion, to be paid over 10 years, equating to approximately $280 million annually.

“To address this obligation, we have developed a plan where the NCAA will contribute $1.2 billion over 10 years, representing 42% of the total back damages. This will be funded through careful expense management, new revenue initiatives and the use of reserves.

“The remaining 58% will be distributed among the Division I conferences based on their distributions over the past nine years. This translates to an annual contribution of $165 million, or a 20% total reduction in distributions.

“Specific contributions are as follows:

• Football Bowl Subdivision conferences: $95 million annually (33%).
• Football Championship Subdivision conferences: $37 million annually (13%).
• Nonfootball Division I conferences: $34 million annually (12%).

“While these contributions represent only 1%-2% of total revenues for FCS and nonfootball conferences, individual conferences will need to manage these contributions based on their members’ budgets. I understand this change will not be easy to manage, but given the challenges facing college sports over the last few decades, change is inevitable. I believe the change before us now presents massive new opportunities for student-athletes and all of Division I. 

“And to be clear, the financial estimate is just that. If the NCAA outperforms revenue projections and has unplanned surplus net assets, there will be an opportunity to determine how those additional assets can be used to offset the local impact of the damages payment (e.g., supplemental, pay down).

“Additionally, the forward-looking aspect of this settlement includes a revenue-sharing model allowing schools to provide more direct benefits to student-athletes, including for NIL. This model, starting in the 2025-26 fiscal year, proposes that 22% of average Autonomy 5 revenues can be shared with student-athletes, potentially amounting to $1 billion to $1.5 billion annually.

“This settlement achieves several critical objectives:

1. It replaces potentially crippling lawsuits with a negotiated settlement and a 10-year injunction.
2. It enables student-athletes to receive up to 22% of the average DI Power 5 athletics revenues — in addition to tuition and other benefits currently provided. Adding all these benefits together, many A5 schools would be devoting nearly 50% of athletics revenue to student-athletes.
3. It ends decades of antitrust litigation, stabilizing college sports while permitting conferences and the NCAA to enforce rules that set a level playing field and emphasize the educational mission of college athletics.
4. It binds DI together, enabling the NCAA to contribute $120 million annually for 10 years toward back damages.

“This is a massive step forward for student-athletes and college sports, but it does not address every challenge. There are still pending legal issues, such as those related to employment with the NLRB and the Johnson case. 

“While challenges remain, this is a vital opportunity to positively reshape the future of college sports. In the weeks ahead, the DI governance team will be working through all relevant committees to discuss next steps with you all. 

“There is a lot of work to be done, and we look forward to getting it done with you in the coming months. 

“Sincerely,

“Charlie Baker”

The post Charlie Baker believes antitrust settlement will ‘reshape the future of college sports’ in memo sent to members of NCAA appeared first on Saturday Glory.

The Bears accepted an invitation and will move within the Division I Football Bowl Subdivision as a full-league member of CUSA for the first time effective July 1, 2025.

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“We are so excited for the opportunities that CUSA membership will bring to our university, our student-athletes, our coaches and our fans,” Missouri State athletics director Kyle Moats stated in a release. “This move represents a transition to a national brand and a platform that will help raise the profile of Missouri State University and the city of Springfield. The steps we have taken over the past 15 years to invest in a successful broad-based athletics program have prepared us for this long-awaited moment.”

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Missouri State had been a member of the Missouri Valley Conference, where it will play one final season this fall, since 1990. The Bears have won 10 conference championships and made four appearances in the Football Championship Subdivision playoffs most recently in 2021.

According to a release, Missouri State’s anticipated increase in revenue from going to an FBS conference “will ultimately make the move a budget-neutral transition.”

According to Lyndal Scranton of the Springfield Daily Citizen, retiring Missouri State president Clif Smart said the school received a $5 million commitment from a private individual to help with some of the costs for the move. Other costs include “$2.5 million paid over four years to join Conference USA.”

More financial resources for student-athletes and travel upgrades played “significant factors” in the school’s decision to make the move, according to a release. Short-term and long-term upgrades to the Bears’ home of Plaster Stadium were also factors, according to the Springfield Daily Citizen.

“This move will absolutely open doors for us,” Moats stated. “For our student-athletes, they will have less bus travel and more flights which will get them back to campus in a safer and more-timely manner. They will also have more financial resources at their disposal for cost of attendance, Alston funds, and a more strategic presence in the name, image and likeness (NIL) space.”

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Missouri State is already an affiliate member in CUSA in beach volleyball. The Bears will soon compete in football as well as other sports such as baseball, men’s and women’s basketball, and volleyball in addition to seven more.

Since moving to the FBS and thus requiring 22 additional football scholarships, Missouri State announced it will add STUNT and acrobatics and tumbling to its women’s athletics programs in 2024-25.

CUSA will expand to 12 teams in 2025 as Missouri State will join Delaware from the Coastal Athletic Association in the FCS. The Bears will join a new conference including defending champion Liberty as well as New Mexico State and Jacksonville State among others.

“We are extremely excited to welcome Missouri State University as the 12th member of Conference USA,” CUSA Commissioner Judy MacLeod stated in a release. “The institution boasts a great tradition in athletics and academics that will strengthen and further position our membership for long term success in the national landscape.  We look forward to our partnership with President Clif Smart, incoming President Dr. Biff Williams, Director of Athletics Kyle Moats, and their entire leadership team.”

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