The legal battle between House and the NCAA has taken center stage in college athletics, raising critical questions about student-athletes’ rights and the future of college sports as we know them. This ongoing case has potential implications that could reshape the landscape of collegiate athletics, affecting everything from recruitment to player compensation. These changes will have a profound impact on the collegiate landscape, and further has a profound effect on high school athletes who are attempting to participate in collegiate athletics at the Division 1 level.
To understand how these profound changes impact your school’s athletic program and to ensure compliance, consult with MBM Law’s education attorneys today.
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House vs. NCAA, Amateurism, and Antitrust
At the heart of House v. NCAA is the challenge against the NCAA’s amateurism model, which has been criticized for restricting student-athletes from profiting from their names, images, and likenesses (NIL). The argument posited by the plaintiffs suggests that the NCAA’s regulations not only limit student autonomy but also violate antitrust laws, ultimately denying athletes the opportunity to benefit from their contributions to college sports.
With the advent of NIL rights in 2021, many argue that athletes should be free to monetize their identities. This case is in final settlement discussions, and a Federal Judge is reviewing the agreement that has been made and will decide on whether to approve the agreement.
House v. NCAA Settlement Impact on College Athletics
1. Recruitment Overhaul
If the court rules in favor of the plaintiffs, we may witness a seismic shift in recruitment practices. Colleges and universities could leverage the ability to offer more substantial NIL opportunities to attract top talent. This would impact the recruitment seen by many high school student athletes as colleges and universities begin to emphasize the NIL deals for which they can sign students to attract them to their program. This could lead to start athletes receiving multiple large money offers from colleges and universities.
Furthermore, the settlement agreement would change the landscape of scholarships. Again, this would have a profound impact on high school students as they begin their recruitment process. The settlement would remove the scholarship limitations that colleges and universities currently face and replace them with a roster limit. It would also authorize partial scholarships. This agreement could allow more colleges and universities to provide more athletic scholarships at the Division I 1 level.
2. New Compensation for College & High School Athletic Programs
The current NCAA model imposes strict limitations on what student-athletes can receive financially. A ruling favoring the plaintiffs might upset the financial balance within college athletics, leading to increased investments from programs eager to enhance their competitive edge. This landmark settlement will allow colleges to begin to pay their student athletes collectively as much as $20.5 million per year in the 2025-2026 school year. This changing dynamic could create a necessity for high school programs to begin to educate their student athletes on what to expect at the next level.
3. Compliance with Athlete NIL Disclosure
In an apparent attempt to create additional oversight, college athletes, if the settlement is approved, would have to begin disclosing all NIL payments over $600. This further necessitates the need for high school students to be educated on the requirements they may need to comply with as they enter the Division 1 level.
In this rapidly evolving landscape, high schools and universities alike require an experienced education law firm that is constantly up-to-date on the latest NCAA and NIL developments to protect their interests and ensure compliance. Contact MBM Law today for proactive legal guidance tailored to your institution’s needs.
PIAA NIL Policy: Ensuring High School Compliance
The Pennsylvania Interscholastic Athletic Association (PIAA) still allows high school students to participate in NIL opportunities. They have a requirement that any NIL deal that a student enters must be reported to the school within 72 hours. MBM Law has developed school-wide policies for NIL and forms that can be filled out by student athletes to comply with the PIAA 72-hour rule. Furthermore, if student athletes have repeated violations of the NIL rules, student athletes can face discipline. The PIAA rule further limits the extent to which high school programs can help facilitate NIL deals.
Partner with MBM Law: Your School’s Guide to NIL Updates
As House v. NCAA unfolds, its implications for college athletics cannot be overstated, but its impact on high school athletes will be just as intense. The case highlights a critical turning point that may define the future of college sports, influencing everything from recruitment strategies to college finances.
The changes found in the House settlement will have a profound impact on high school athletes. As recruitment under the new system begins, more athletes may have an opportunity to make a team with the change to roster limits. More students could receive scholarships for athletics. Further, high school athletes could begin to see contracts that not only lay out their scholarships, but also their NIL payment through the colleges and universities. Preparing high school athletes on the ever-changing dynamics they will face in this new era is paramount to ensure their success in the future.
MBM Law continues to be on the cutting edge of understanding the changing landscapes to help inform our clients of impacts to their school administration. If you have any questions or want to discuss the NIL policies we have developed or the standardized form that our legal team has created, contact us.
