By James Sutherland on SwimSwam
The NCAA announced Thursday the finalization of the payment structure in its settlement with volunteer coaches.
This past November, the NCAA agreed to pay $303 million over three years to settle a class action lawsuit brought forward by volunteer coaches—the Ray settlement.
The NCAA will pay $101 million annually for three years (2026–2028) as part of the settlement, with 60% ($60.6 million) coming from reductions to NCAA Division I revenue distributions and 40% ($40.4 million) coming from the NCAA national office.
The NCAA said the $60.6 million in annual Division I contributions will be “funded by reducing the division’s overall revenue distribution budget, resulting in the impact on conferences being proportionate to their annual revenue distributions.”
Of the $40.4 million coming from the NCAA office, $10 million total will come from Division II and Division III combined.
The original lawsuit, representing 7,700 volunteer college coaches, alleged 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 alleged violates U.S. antitrust law.
“Leadership across the NCAA governance structure approached this decision with clear priorities – protect the Association’s ability to serve student-athletes and provide members with predictability,” said Jim Phillips, Ph.D., chair of the Board of Governors and ACC Commissioner.
“This outcome is the product of careful review and sound governance. It addresses the settlement in a way that is financially responsible and transparent.”
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.
We reported in November how coaches could calculate their estimated payouts, which you can read here.
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 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.
In November 2022, baseball coaches filed a similar lawsuit and reached a settlement with the NCAA earlier this year for $49.25 million.
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