By James Sutherland on SwimSwam
The NCAA has agreed to pay $303 million over three years to settle a class action lawsuit brought forward by volunteer coaches.
The lawsuit representing 7,700 volunteer college coaches alleges the NCAA engaged in illegal wage fixing under a rule that prohibited schools from paying them.
The coaches claimed that the organization fixed their compensation at $0, suppressing competition for their labor, which they allege violates U.S. antitrust law.
In a letter sent to membership on Monday, NCAA President Charlie Baker said the settlement will be financed by “distribution reductions, net assets and national office contributions.”
Each coach from the settlement will receive an approximate $39,200 before expenses and fees, according to ESPN, though school, sport and years worked all factor into individual compensation.
From 1992 through July 2023, the NCAA had a cap on the number of paid coaches schools could have in Division I, and certain sports were given one “volunteer coach” spot who would not be paid and were restricted from receiving other benefits.
The lawsuit claims those volunteer spots were examples of wage fixing and “unlawful agreements in restraint of the trade and commerce,” ESPN reported.
“This combination and conspiracy by the NCAA and its member 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,” the lawsuit says, according to ESPN.
In 2023, the NCAA removed its policy that allowed volunteer coaching positions, which opened up room for more paid coaches on rosters if schools were willing to pay.
The proposed settlement notes that many class members will receive a six-figure amount.
The class includes any volunteer coach who worked for a Division I athletic program other than baseball at any point from March 17, 2019, to June 20, 2023.
In November 2022, baseball coaches filed a similar lawsuit and reached a settlement with the NCAA earlier this year for $49.25 million.
“We are incredibly proud of this settlement which, if approved, will provide significant and meaningful compensation to thousands of hard-working coaches,” the lawyers for the coaches said in a statement, according to Front Office Sports. “We look forward to the approval process and are committed to ensuring that these funds are distributed to coaches in a fair and efficient manner.”
The settlement is still awaiting approval from Judge William B. Shubb in the U.S. District Court for the Eastern District of California.
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