Sources: Big 12 first to settle House v. NCAA case

The Big 12 conference became the first named party in the House v. NCAA case to vote to settle that case and related anti-trust cases, sources told ESPN, forging a path to a new era in college athletics.

Big 12 presidents and chancellors voted virtually Tuesday afternoon to unanimously approve, with departing members Texas and Oklahoma abstaining. The 12 continuing members from this year’s conference all voted to pass. The other four power conferences and the NCAA board of governors are expected to vote in the upcoming days. The settlement is widely expected to pass, which will chart a new course for college sports.

Sources have consistently indicated to ESPN that there’s little resistance on the conference level, and the NCAA is also expected to pass the settlement measure. (The Pac-12 will vote as a full 12-team league, as currently constructed, as they were when the House v. NCAA case was filed.)

Sources told ESPN that Big 12 presidents and chancellors were briefed in recent days on a 13-page term sheet that contains the settlement language.

The key parts of the settlement will include the NCAA paying for more than $2.7 billion in back damages over a decade, about $1.6 billion of which will be withheld from schools.

There’s also roughly $20 million in permissive revenue sharing that’s expected to begin in fall 2025. This revenue sharing will give athletic departments the direct ability to pay the players, a massive paradigm shift for college athletics.

The point of the schools settling is to avoid even bigger damages down the road, which legal experts considered a likelihood considering the NCAA’s poor record in court cases.

Leagues need only majority votes to approve the settlement, and the detractors in conferences aren’t believed to have enough momentum to sway to a no vote, per ESPN sources.

But there’s still an aura of uncertainty hanging over the landscape, as school presidents meeting both virtually and in-person this week.

On campuses, school officials are meeting and scrambling to figure out how to adjust to the new paradigms. Schools in bigger leagues need to find nearly $20 million to budget for athletes and figure out how to divide it. Smaller leagues are adjusting on how to cover costs, as the NCAA is withholding varying money from schools in all levels of Division I to cover the costs.

There’s no clarity on Title IX’s role in revenue sharing, how roster caps will work and what enforcement of Name Image and Likeness will look like. (NIL is expected to continue to exist in addition to the revenue sharing.)

Sources have indicated it will be at least six months until these details are worked out, likely longer. There’s also expected to be several other steps before Senior District Judge Claudia Wilkin can approve the settlement. All Division I athletes have the opportunity to object to the terms or opt out of the class.

Wilkin also needs to hold a preliminary hearing to review the terms of the settlement. Later, she’d need to consider any augments presented against it before formally ruling on the settlement. This all projects to take months to unfold.

There’s also expected to be continued asks to Congress to work toward more narrow exemptions from future lawsuits. The industry belief has been that Congress could be more willing to help college sports, as opposed to saving it, now that there’s a structure moving forward that includes revenue distribution for the players.

The lawyers in the House case and two other related cases include – Hubbard and Carter — veteran anti-trust lawyers Jeffrey Kessler and Steve Berman. Kessler has been at the forefront of the sports labor movement for several decades, including the O’Bannon v NCAA case in 2014. Berman has also been involved in several anti-trust cases against the NCAA, including the Alston case that the Supreme Court upheld in 2021.

ESPN staff writer Dan Murphy contributed to this report.