Title IX Challenge Delays $2.8B College Athlete NIL Settlement

The recent settlement of In re College Athlete NIL Litigation (the Settlement) has been challenged on Title IX grounds. The Settlement mandated back payments of $2.8 billion to former Division I athletes who played college sports before Name, Image, and Likeness (NIL) compensation was allowed in 2021.

Why Are the NIL Settlement Payments Delayed?
A group of female athletes filed a Title IX challenge, arguing that the distribution of the $2.8 billion, 90% to men’s football and basketball players, 5% to women’s basketball players, and 5% to all other student athletes, violates Title IX’s gender equity requirements.

Which Parts of the Settlement Will Still Take Effect in 2025?
Key components of the settlement, including revenue sharing, a new NIL framework, and revised roster limits, are still scheduled to take effect on July 1, 2025. Only the $2.8 billion in back payments is paused.