Gov. Gianforte Criticizes $2.8 Billion NCAA Settlement
Gov. Greg Gianforte announced that the proposed $2.8 billion NCAA settlement over Name, Image, and Likeness (NIL) rights is unfair to rural states like Montana and will severely impact their athletic programs. If approved, the settlement aims to compensate college athletes previously denied NIL payments, according to court documents.
Earlier this month, the South Dakota Board of Regents filed a lawsuit claiming the settlement favors large universities and disadvantages female athletes, as reported by the South Dakota Searchlight. South Dakota Attorney General Marty Jackley estimated a $1 million annual revenue loss for the state’s largest public universities.
Montana State University and the University of Montana could face a $4.4 million loss over 10 years, with UM alone projected to lose $200,000 annually. UM Athletic Director Kent Haslam stated, “It’s real money. We budget for that.”
The athletes argued that the NCAA profited from their NILs without compensation, and lawyers for the athletes described the settlement as “revolutionary” with a “profoundly positive impact” on Division I athletes. The settlement would be one of the largest antitrust payouts in U.S. history.
Governors Raise Concerns
Gov. Gianforte and four other governors expressed concerns in a letter to NCAA President Charlie Baker and the Board of Governors, stating the settlement burdens smaller athletic programs to benefit larger ones. They requested a restructure to mitigate financial impacts on rural states.
The letter highlighted that only the “Power Five conferences” were involved in the lawsuit and settlement talks, potentially leaving smaller programs, including those in Montana, responsible for nearly $1 billion in payments. South Dakota Attorney General Jackley suggested other states might join the lawsuit, emphasizing the disproportionate impact on smaller schools.
UM’s Haslam noted that while the settlement provides stability and clarity, it is financially challenging for smaller programs. MSU estimated a $235,000 annual reduction for 10 years. Haslam stressed the importance of finding solutions, appreciating the support from the governors.
The NCAA could not be reached for comment, but commissioners previously praised the settlement for increasing student-athlete benefits and ensuring a sustainable future for college sports. Discussions for the settlement began in November 2022 with mediator Professor Eric D. Green.
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