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Grant House, an Arizona State University swimmer, led a class-action lawsuit that forced the NCAA to settle, allowing colleges to pay athletes directly for the first time. According to The Arizona Republic, the settlement includes billions in back pay for former athletes and effectively ends the traditional amateurism model in collegiate sports.

The settlement in House v. NCAA resolves claims that the organization violated antitrust laws by preventing athletes from earning money from their name, image, and likeness (NIL). Under the terms reported by The Arizona Republic, the NCAA will pay nearly $2.8 billion in damages over a 10-year period to former student-athletes who were barred from earning NIL compensation between 2016 and 2020.

The agreement also establishes a revenue-sharing model. This allows universities to pay athletes directly from school revenue, a move that separates the current era from the previous NIL system where athletes relied solely on third-party “collectives” for payment.

This development differs from the 2021 Supreme Court ruling in NCAA v. Alston. While Alston allowed schools to provide education-related benefits, the House settlement opens the door for direct salaries or revenue splits from the universities themselves.

Why did Grant House sue the NCAA?

House sought compensation for the value he and other athletes provided to the NCAA and their respective universities without receiving a share of the profits. The lawsuit argued that the NCAA’s restrictions on athlete pay were an illegal restraint of trade.

The legal challenge focused on the disparity between the massive revenues generated by collegiate sports and the limited financial support provided to the athletes performing the work. By challenging these rules, House aimed to create a sustainable system where athletes are compensated as employees or partners in the revenue they generate.

How does the settlement change athlete pay?

The settlement creates two primary financial shifts for collegiate athletes, according to court documents and reporting from The Arizona Republic:

• Back Pay: Former athletes from the 2016-2020 window can claim a portion of the $2.8 billion settlement fund.
• Direct Revenue Sharing: Schools can now allocate a specific percentage of their athletic revenue directly to athletes, though the exact cap is still being finalized by the NCAA and member institutions.

This shift moves the financial burden from external donors to the universities’ own balance sheets. It creates a more transparent, albeit more expensive, model for collegiate athletics.

Who is Grant House?

Grant House is a competitive swimmer for Arizona State University with a lifelong connection to the sport. The Arizona Republic reports that swimming was a family cornerstone for House.

His parents served as youth and high school swim coaches. Both his older sister and brother competed as college swimmers. House described his upbringing in a way that emphasized his immersion in the sport from birth.

“I was raised in a crib next to the pool.”

Grant House via The Arizona Republic

This background provided House with an understanding of the rigorous training and lifelong commitment required for elite swimming, which informed his perspective on the value athletes bring to their institutions.

What happens next for the NCAA?

The NCAA must now oversee the distribution of back pay and coordinate with universities to implement the revenue-sharing caps. This transition is expected to create significant financial pressure on non-revenue sports, as schools divert funds to pay high-profile athletes in sports like football and basketball.

Legal analysts suggest this settlement may lead to further litigation regarding whether student-athletes should be legally classified as employees of their universities. Such a classification would grant athletes the right to unionize and negotiate collective bargaining agreements.