The $2.8 Billion NCAA NIL Settlement: Understanding the Opportunity for Student-Athletes and Their Advisors
Date:
February 12, 2026
Author:
Roni Dersovitz, Esq.
The historic NCAA settlement creates a multi-year payment structure for an estimated 389,700 eligible athletes—but long-tail distributions mean waiting years for compensation. Post-settlement funding transforms this timeline, giving athletes control over when they access their court-approved awards.
On June 6, 2025, a federal court granted final approval of a $2.8 billion antitrust settlement resolving House v. NCAA, Carter v. NCAA, and Hubbard v. NCAA. The actions alleged that the NCAA and its member institutions unlawfully restrained trade by prohibiting student-athletes from receiving compensation for the use of their name, image, and likeness (NIL) between 2016 and 2024.
This represents one of the most significant antitrust resolutions in collegiate athletics history. Yet beneath the headline lies a complex reality: settlement distributions will occur over an extended period—often spanning a decade—rather than as lump-sum payments. For athletes navigating post-collegiate transitions, this creates a meaningful gap between legal victory and financial access.
An estimated 389,700 current and former Division I athletes are eligible to receive settlement payments. However, expected payouts vary dramatically by sport:
Power Five Football & Men's Basketball: Average payout approximately $91,000 (range: $15,000–$280,000)
Power Five Women's Basketball: Average payout approximately $23,000 (range: $3,000–$52,000)
Other Division I Sports: Typically under $1,000, subject to sport-specific calculations
This distribution reflects historical NIL earnings concentration. Football accounts for approximately 40% of all NIL dollars, men's basketball represents 10%, and women's basketball comprises 9%, with the remaining 41% distributed across 21 other sports.
Here's what many eligible athletes and advisors overlook: settlement payments will be distributed over multiple years, not delivered immediately. This extended schedule creates substantial challenges for claimants facing immediate financial pressures—graduate school tuition, housing costs, early-career investment, or debt reduction.
Consider a former Power Five football player entitled to a $75,000 award distributed over eight years. Receiving approximately $9,400 annually (before taxes and deductions) may not address immediate needs or optimal timing for major life decisions.
"I've spent over 25 years working with legal receivables, and timing mismatches are one of the most underappreciated aspects of settlement structures," I often explain. "A dollar received today has fundamentally different utility than the same dollar received five years from now—particularly for young adults navigating pivotal transitions."
Post-settlement litigation funding offers eligible athletes a strategic alternative to waiting through extended distribution timelines. This specialized financing allows claimants to convert their court-approved settlement entitlement into immediate liquidity, without assuming personal repayment obligations or traditional debt.
Unlike conventional lending, post-settlement funding is structured as a non-recourse transaction tied directly to the settlement receivable:
No Personal Liability: Repayment depends solely on receiving settlement proceeds. If payments are delayed, reduced, or not received, the athlete owes nothing additional.
No Credit Impact: Funding is secured by the settlement receivable, not personal creditworthiness—no effect on credit scores or personal guarantees.
Verified Claims: Institutional funders conduct independent verification, coordinating with counsel and settlement administrators.
Flexible Amounts: Athletes can monetize only a portion of their expected award, retaining upside in future payments while accessing liquidity now.
The advantages extend beyond cash access:
Immediate Liquidity for Life Transitions
Many claimants are navigating critical career stages—graduate school, relocation, business formation, or debt elimination. Immediate capital supports these decisions at pivotal moments rather than forcing multi-year delays.
Financial Certainty
Settlement administration involves processing delays and verification procedures. Post-settlement funding provides certainty by locking in value today, mitigating timing risk.
Avoiding High-Cost Alternatives
For many athletes, post-settlement funding beats credit cards, personal loans, or private debt that carry high interest rates, personal liability, and credit impacts.
Preserving Optionality
Athletes make proactive financial decisions rather than reactive ones, reducing pressure for suboptimal short-term choices driven by cash constraints.
"Post-settlement funding functions as a risk-management and cash-flow planning tool," I explain to attorneys and agents. "It aligns settlement timing with real-world financial needs while maintaining complete alignment with the court-approved resolution."
Legal counsel and athlete representatives play a critical role in helping eligible claimants understand their options. When evaluating funding, consider:
Time Horizon: Does the client face near-term financial pressures that would benefit from immediate capital access?
Opportunity Cost: What timing-sensitive opportunities—graduate programs, business ventures, real estate—might justify accessing capital now?
Financial Sophistication: Would post-settlement funding represent their primary liquidity option?
Award Size and Timeline: Larger awards over longer periods create stronger economic cases for funding solutions.
"The best outcomes occur when attorneys and agents approach post-settlement funding as one tool in a comprehensive financial planning conversation," I advise. "It's about matching the tool to the client's specific situation."
Post-settlement funding enables athletes to realize the economic benefit of the NIL settlement on their own timeline, rather than being constrained by administrative payment schedules extending up to a decade. For many former student-athletes navigating pivotal career transitions, accessing capital today may be more valuable than receiving the full award years later.
This isn't about maximizing absolute dollars—it's about maximizing utility and aligning financial resources with life opportunities.
"The settlement represents historic compensation for eligible athletes," I tell advisors navigating these conversations. "Post-settlement funding simply gives claimants agency over timing, helping them translate a long-dated legal entitlement into practical, near-term financial flexibility—without assuming repayment risk or personal debt."
For attorneys and agents representing eligible athletes in the NCAA NIL settlement, understanding both the settlement architecture and post-settlement liquidity landscape will be critical to advising clients on timing, risk, and value preservation.
We welcome the opportunity to work with NIL claimants, their counsel, and professional representatives. Whether exploring options for a single client or seeking to understand funding dynamics for a portfolio of eligible athletes, we're here to provide education, analysis, and customized solutions.
Contact RD Legal Funding
To learn more about post-settlement funding for NCAA NIL settlement claimants:
Phone: (800) 565-5177
Email: info@legalfunding.com
Website: www.legalfunding.com
Roni Dersovitz, Esq. is the founder and CEO of RD Legal Funding, a pioneer in providing innovative liquidity solutions for contingency law firms, settlement claimants, and legal receivables. With over 25 years of experience in litigation finance, Roni has helped transform legal victories into immediate financial results for thousands of clients. To learn more, visit www.legalfunding.com or contact us at info@legalfunding.com or (800) 565-5177.
