House Settlement: Rights to Backpay for Former Athletes
The following is not legal advice, but general information. You are not a client of Engrav Law Office unless you have entered into an engagement letter with the firm.
Due to the rapid evolution of name, image, and likeness (NIL) rights for student athletes, the world of college sports has been nothing short of a legal whirlwind. On an almost weekly basis, new rules are being ushered in while old rules are removed or replaced. Amidst the chaos, however, one significant development appears to be here to stay: Former Division I student athletes who played a college sport between the years of 2016-2024 may be entitled to settlement payouts from a $2.8 billion NIL settlement fund.
What is the House Settlement?
Before getting into the specifics of who may be entitled to payment from the settlement and why, it’s important for former student athletes to understand the very basics of what the House Settlement is and how it works. In very simple terms, the House Settlement (which receives its name from the case House v. NCAA) is the result of a consolidated anti-trust lawsuit challenging NCAA rules that prevented college athletes from being paid for the use of their name, image, and likeness in various ways. The settlement itself includes several terms that are primarily set to affect current and future student athletes, but part of the settlement was also to the benefit of former student athletes in the form of backpay for being restricted from monetizing their name, image, and likeness while in school.
Are you eligible to receive payment?
Like most things in the law… it depends. To understand exactly what rights apply to your specific situation, you should speak with an attorney. That said, former student athletes tend to generally fall into one of four categories:
- Opted in but didn’t file a claim – subject to the settlement terms, but not entitled to payment.
- Opted in and filed a claim – subject to the settlement terms, and potentially eligible to receive a payment from the settlement.
- Opted out – not subject to the settlement terms and not entitled to any payment under the settlement.
- Did not opt in or opt out – still subject to the settlement terms, but likely not eligible for payment without taking further action.
What Happens Moving Forward?
If you believe you may or should be eligible for payment (or are at the very least a class member) under the House Settlement, it’s important to stay informed and understand how the settlement may affect you. As of now, the settlement payments have been paused due to ongoing appeals in the Ninth Circuit. However, even with payments on hold, the deadlines to opt in, opt out, or file a claim have already passed. Because those deadlines have expired, it may now be difficult or even impossible to change your current status. That said, speaking with an attorney may help you understand what your current status is and whether any limited options remain.
In the meantime, former student athletes should gather any relevant records such as the years they played, the schools they attended, and any communication they’ve received about the case.
If you’re unsure whether you opted in, opted out, or filed a claim, an attorney can help you determine your current position and what rights, if any, you may still have. Again, this is not legal advice, but understanding your situation now may help you protect your interests if new developments arise.
