VCU to begin paying athletes after NCAA settlement

Illustration by Killian Goodale-Porter.
Harshini Kanala, Contributing Writer
VCU has entered into a settlement agreement for House v. NCAA, a class-action antitrust lawsuit seeking to fairly compensate collegiate players. Plaintiffs have until Jan. 31 to file objections, opt out or enter the settlement. Once it is approved by the presiding judge, final approval of the agreement is expected on April 7, according to Ed McLaughlin, the student athletic director at VCU. The terms of the settlement will take effect on Aug. 1.
McLaughlin said the agreement comes as an addition to the NCAA policy updates from July 2024 that allowed for the formation of name, image and likeness deals. Before NIL deals, the NCAA did not allow student-athletes to make any money off their careers.
“This is more money for student-athletes going forward,” McLaughlin said. “It’s probably not a terrible thing that student-athletes can make some money, and for some of these student-athletes it’s life-changing money.”
The House settlement includes $2.9 billion paid for universities to share with their athletes, as well as compensation for former athletes involved in the suit, according to McLaughlin. Roster caps and scholarship limits will also disappear.
All schools in the NCAA will end up paying for this in some way shape or form, according to McLaughlin. This can include “payments” in terms of reduced NCAA funding for VCU men’s basketball TV contract and joining “power conferences” to generate more revenue.
The difference between the establishment of NIL and the settlement would be the ability for athletes to generate a direct revenue structure with their schools without the involvement of a third party, according to McLaughlin.
VCU decided to enter the settlement because they want students to know that they are the ones making the decision in support of student-athletes, according to McLaughlin.
“We want to be able to compensate our student-athletes for their brand. People think being student-athletes is all they’re going to do — they’re still busy as can be,” McLaughlin said.
The university’s choice to opt into the terms of this settlement will result in some held back money in order to pay it off, according to McLaughlin.
“We’re just going to have to live with that consequence, but we’re still very much a part of the NCAA and have to deal with all things that go with it,” McLaughlin said, “VCU is targeting to allocate somewhere between $4 or $5 million dollars a year for their players, a number significantly less than the $20 million cap that is placed.”
Athletic scholarships will continue to be offered by the university after the settlement, according to McLaughlin.
Mykel Parham, a graduate student in the master of public administration program, and a forward on the women’s basketball team said VCU’s decision is a monumental step and is curious to see how it plays out.
“I think a lot of athletes are unsure about how revenue sharing is going to be different from NIL,” Parham said. “Just across the board, I think there’s going to need to be a lot of educational sessions and informational sessions on how to operate these new spaces.”
Parham said few players actually have NIL opportunities. Players were often unaware and it was difficult for international students to take part in. She is looking forward to getting paid directly by VCU but is worried about people looking at student-athletes as “employees” and is concerned about the gender disparities that come with it.
“I know money complicates a lot of things, but I think that VCU is well prepared to approach that battle. Just yesterday they talked about Title IX in its relation to revenue sharing,” Parham said. “I think I’ll find that extra interesting because it’s important to advocate for women in all these spaces as women’s sports are growing.”
Even if the amended settlement is finally approved, several lingering questions remain, including how institutions that share revenue are to remain in compliance with Title IX, prohibiting discrimination based on sex in federally funded educational programs and requiring schools to provide equal opportunity based on sex in athletics programs, the employment status of student-athletes, according to Ropes and Gray law firm.
Michael Belle, an international second-year student at VCU and a forward in the men’s basketball team, said he lacks the same deals as a regular student-athlete would because of his status as an overseas player.
“I was able to get revenue from our Greece trip because it was outside of the U.S.,” Belle said. “So I got compensated for that this summer, but I mean, it’s only when I’m not in America when I can get compensated, so I haven’t had too many opportunities this year.”
Brandon Jennings, a first-year student at VCU and a guard in the men’s basketball team said he has heard a little about the settlement online but does not know much about it.
“Right now I’m working with Rodney Ashby, who is head of our NILs for VCU, and that’s the only thing I’m working with — but it’s a big opportunity. It’s a blessing for us. I’m glad to be a part of this era of college basketball,” Jennings said.