Federal Judge Holds NCAA Settlement Approval

The NCAA's proposed $2.7 billion settlement in the House v. NCAA antitrust case is currently in jeopardy following U.S. District Judge Claudia Wilken's refusal to grant preliminary approval. Judge Wilken expressed concerns about provisions limiting third-party payments to athletes from boosters and collectives, questioning the enforceability of these restrictions. She instructed both parties to reconsider the settlement terms, particularly regarding the definition of 'valid business purpose' for booster payments, which could significantly impact athlete compensation. NCAA attorney Rakesh Kilaru emphasized that these restrictions are central to the settlement, suggesting that without them, a deal might not be possible. Both sides have three weeks to negotiate potential amendments before reporting back to the court. If an agreement cannot be reached, the case may proceed to trial, which some NCAA officials believe may be a better option.