Ohio State AD Ross Bjork releases statement on House settlement

COLUMBUS — Fifty-nine months after the initial class-action House v. NCAA suit was filed, it was resolved three days ago. Judge Claudia Wilken approved the House settlement on Friday in the U.S. Northern District of California on Friday, marking a landmark decision in the history of college sports.

Ohio State stands to be one of the biggest winners of the new House settlement, especially now that Buckeyes athletic director Ross Bjork confirmed Monday that the program will spend the full $20.5 million schools are allowed to spend on their athletic departments.

The full statement from Bjork is here:

“The signing of the House settlement Friday by Judge Claudia Wilken will reshape collegiate athletics. Ohio State and schools around the country will now be permitted to directly compensate student-athletes through revenue sharing, which is actually institutional NIL rights. The Department of Athletics will fully fund the revenue sharing program, which will total $20.5 million and includes funding for additional scholarships for both women’s and men’s sports. We remain committed to maintaining the student-athlete model, offering 36 intercollegiate sports and providing scholarships to all 36.”

– Ohio State athletic director Ross Bjork

More on the House settlement from On3’s Pete Nakos

Since the NCAA was founded in 1906, institutions have never directly paid athletes. That will now change with the settlement ushering in the revenue-sharing era of college sports. Beginning July 1, schools will be able to share $20.5 million with athletes, with football expected to receive 75%, followed by men’s basketball (15%), women’s basketball (5%) and the remainder of sports (5%). The amount shared in revenue will increase annually.

Power Four football programs will have roughly $13 to $16 million to spend on rosters for the 2025 season. Many schools have front-loaded contracts ahead of the settlement’s approval, taking advantage of contracts not being vetted by the newly formed NIL clearinghouse.

“Despite some compromises, the settlement agreement nevertheless will result in extraordinary relief for members of the settlement classes,” Wilken wrote in her 76-page final opinion. “If approved, it would permit levels and types of student-athlete compensation that have never been permitted in the history of college sports, while also very generously compensating Division I student-athletes who suffered past harms.”

Instead of facing $20 billion in back damages, the NCAA and Power Five conferences signed off on a 10-year settlement agreement that includes $2.776 billion in back damages. The NCAA is responsible for paying the amount over the next decade – $277 million annually. Roughly 60% will come from a reduction in distribution to institutions. The NCAA is tasked with closing the other 40%, which will come through reducing operating expenses. Some of the top athletes in recent memory will make millions.

The settlement also imposes new restrictions on college sports. An NIL clearinghouse will be established, titled “NIL Go” and run through Deloitte. All third-party NIL deals of $600 or more must be approved by the clearinghouse. If not approved, the settlement says a new third-party arbiter could deem athletes ineligible or result in a school being fined. In a gathering at the ACC spring meetings last week, Deloitte officials reportedly shared that 70% of past deals from NIL collectives would have been denied, while 90% of past deals from public companies would have been approved.