A federal judge’s approval of the NCAA’s $2.8 billion settlement with college athletes marks a seismic shift in college sports, opening the door for schools to pay athletes directly for the first time. While hailed as a victory for athletes’ rights, ESPN’s Paul Finebaum warns that this new era could bring “legal chaos,” deepen inequalities, and spark a new wave of lawsuits.
How the $2.8 Billion Settlement Widens the Gap Between Rich and Poor Schools
When the NCAA agreed to pay $2.8 billion in back wages to athletes who missed out on Name, Image, and Likeness (NIL) earnings, it wasn’t just a payout—it transformed the entire college sports landscape. Beginning July 1, 2025, schools can distribute up to $20.5 million annually to their athletes, a figure set to rise yearly.
Yet, as Finebaum told the Dan Patrick Show, “This is only going to help the rich. The big leagues, the Big Ten, the SEC will more than likely profit because they have so much money. Women’s sports, in my opinion, will be hurt. Olympic sports will be crushed. Football wins. Basketball, other than maybe the Big East, takes a slight back seat.”
The settlement also introduces new roster limits, replaces scholarship caps, and establishes a College Sports Commission to oversee compliance. However, Finebaum argues that the real winners are the powerhouse programs with deep pockets.
Smaller schools and non-revenue sports could face budget cuts and reduced opportunities. “If you’re a fan of a Group of 5 school, if you’re a fan of a school somewhere in the middle, get ready for hard times,” Finebaum warned.
The NCAA, once the feared enforcer of college athletics, is now described as “essentially dead,” with Finebaum adding, “The damage that this organization has done is incalculable and it’s really about time”. The governing body’s role has shrunk to that of a tournament organizer, with absolute power shifting to conferences and the new College Sports Commission.
Legal Storm Ahead as More Lawsuits Threaten College Athletics
Despite the historic nature of the settlement, the legal battles in college sports are far from over. Many sports lawyers predict that the negotiated salary cap and attempts to regulate NIL deals will trigger fresh antitrust lawsuits.
Title IX lawsuits are also expected, as schools struggle to balance new payments with gender equity requirements, especially after the recent surge in women’s sports viewership and participation.
Finebaum didn’t mince words about the coming storm: “I don’t mean to be one of those guys that says it’s actually going to get worse in some regard, but there are going to be more lawsuits and I think you’re going to see Title IX lawsuits about where…right after we’ve had the greatest explosion of women’s sports, especially in basketball, women’s softball, now it’s going to be curtailed”.
KEEP READING: ‘NCAA Is Dead’ — Analyst Paul Finebaum Torches New Era of College Sports for ‘Killing Cinderella Stories’
The transfer portal remains a major issue, a source of chaos for coaches and players. Schools must now navigate recruiting and retaining athletes, managing NIL contracts, and complying with new rules. “It’s the wild wild west,” Finebaum said, reflecting the confusion and uncertainty that now grips college athletics.
While the NCAA and its allies are lobbying Congress for a federal law to clarify the rules and shield them from further lawsuits, progress has been slow. As one segment put it, “I got more questions than answers have been supplied to me and I’ve talked to people who are part of the decision makers in this and even they are kind of confused by everything or cautious about things”.
The $2.8 billion settlement is only the tip of the iceberg. The need for legal resolution, the birth of new regulatory authorities, and power structures that have been transferred to a new era will define college sports over the next few years. Finebaum sees you as one who will keep stirring things up and prodding them into courtrooms.
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