NCAA's New Arbitration System: A Paradigm Shift In College Sports Discipline

In a landmark development, Judge Claudia Wilken granted preliminary approval to a settlement agreement in "In re College Athlete NIL Litigation" that changes the landscape of college sports. Under the incumbent system, student athletes were allowed to receive NIL compensation only from third parties and the NCAA wielded broad authority over enforcement, effectively serving as prosecutor, judge, and jury. The settlement agreement will result in many changes in college sports, including a damages payment to former college athletes and the lifting of restrictions on schools directly compensating student athletes for use of their name, image, and likeness. While the settlement's provisions on NIL payments have garnered significant attention, the agreement's mandatory arbitration system for disciplinary disputes represents a fundamental shift in how the NCAA will enforce its rules and regulations. The NCAA, conferences, institutions and student athletes need to prepare for