NCAA settles with unpaid coaches for $303M

The NCAA has agreed to pay $303 million to settle a class action antitrust lawsuit representing about 7,700 volunteer college coaches who alleged the organization engaged in illegal wage fixing under a rule that prohibited schools from paying them.

On average, a coach from Monday’s proposed settlement would receive about $39,200 before expenses and fees, based on the school, sport and years worked, according to the proposed settlement, which is awaiting approval by Judge William B. Shubb in the U.S. District Court for the Eastern District of California.

From 1992 to July 2023, the NCAA and its schools agreed to cap the number of paid coaches for Division I sports. Certain sports teams were allowed one «volunteer coach» who would not be paid and who was restricted from receiving other benefits. The NCAA punished schools that violated that rule.

The lawsuit claimed those actions were examples of wage-fixing and «unlawful agreements in restraint of the trade and commerce,» referring to the NCAA in the complaint as a «cartel.»

«This combination and conspiracy by the NCAA and its members schools (which possess a dominant position in the relevant market) has resulted in, and will until restrained continue to result in, anti-competitive effects,» including fixing compensation «at the artificially low level of zero» and eliminating or suppressing competition for skilled labor in the market, the lawsuit states.

recent $2.8 billion settlement agreement to compensate athletes for lost opportunities to benefit from their name, image and likeness, and to allow schools to share revenue with athletes.

NCAA president Charlie Baker addressed the volunteer coaches settlement in a memo sent to members Monday, noting the dispute with the volunteer coaches «is one of the largest remaining lawsuits we face and resolving it provides certainty and clarity for the association and our members.»

He noted that the settlement will be funded by the Division I membership and the national office, and payments likely wouldn’t start until after next summer.

«While this settlement represents a substantial financial commitment, it closes the door on claims related to volunteer coach bylaws, which were effective until June 30, 2023. It also ensures that Division I conferences and member schools are released from any claims for unpaid wages, benefits, or related damages during the Class Period,» Baker wrote.