Where Does Amateurism Stand After House v. NCAA?
By Jack McNabola; Photo Credit: Peter H. Bick
For over a century, the NCAA maintained an iron fist over college athletics through its model of amateurism. The amateurism model is built on the idea that college athletes should compete for the love of the game, not financial compensation. Under this system, athletes receive scholarships and stipends for educational expenses but are barred from earning salaries or sharing in the billions of dollars that college sports generate each year. Infamously, Reggie Bush, widely regarded as one of the greatest college running backs in college football history, was stripped of his Heisman Trophy by the NCAA. Bush had crossed the amateurism line by accepting roughly $300,000 in gifts from his agent.[1]
However, the tides have been turning. In recent years, judicial opinions and changes in the NCAA has slowly unraveled the amateurism model. The most notable blow came in 2021 with NCAA v. Alston, in which the Supreme Court ruled that the NCAA’s restrictions on education-related benefits violated federal antitrust law. Justice Brett Kavanaugh, in a concurring opinion, suggested that broader NCAA compensation limits could also be illegal under antitrust laws.[2] On April 24, 2024, the Heisman Trust announced it would return the Heisman Trophy to Bush. With today’s name, image, and likeness rules, experts have estimated Bush could have made $4-$6 million dollars.[3]
The work is not done for college athletes. After Alston, House v. NCAA presented a more direct challenge to the NCAA’s financial restrictions. The plaintiffs in House contended that NCAA rules prohibiting schools from directly compensating athletes constituted an illegal restraint of trade. They argued the NCAA acted as a “cartel”, artificially capping athlete compensation in violation of antitrust law. Moreover, they called for the billions of dollars generated by college sports should be more equitably distributed, including through direct payments to athletes.
On the other hand, the NCAA defended its stance by asserting that paying athletes directly would blur the line between collegiate and professional sports. The NCAA pointed out that allowing payments to player would create a system favoring wealthy programs, and would harm smaller programs. Notably, secondary sports such as swimming and golf, which often operate at a loss, would potentially be cut to make room for athlete compensation.[4]
The NCAA opted to settle House v. NCAA, which in turn avoided a binding court ruling. The settlement included financial payments to former athletes, and a framework for revenue sharing models going forward. However, not all athletes were satisfied with the outcome. As a class action lawsuit, House v. NCAA permits athletes who fall within the affected group to challenge the terms of the settlement. Some high-profile athletes, including gymnast Olivia Dunne, filed objections to the settlement’s calculation of lost NIL opportunities for athletes. Judge Claudia Wilken will review the objections and make a decision by April 7, 2025.[5]
Jack McNabola is a 2L at Vanderbilt Law School. Originally from Chicago, Jack graduated from the University of Notre Dame with a degree in Business Analytics.
[1] Shehan Jeyarajah, How Did Reggie Bush Lose His Heisman Trophy? Answering Key Questions With Ex-USC Star Back Among Award Winners, CBS Sports (Apr. 14, 2024), https://www.cbssports.com/college-football/news/how-did-reggie-bush-lose-his-heisman-trophy-answering-key-questions-with-ex-usc-star-back-among-award-winners/
[2] NCAA v. Alston, 594 U.S. 69, 112 (2021).
[3] Adam Wells, Reggie Bush Would’ve Made at Least $4-6M at USC Under New Rules, Says Analyst, Bleacher Report (May 10, 2020), https://bleacherreport.com/articles/2891037-reggie-bush-wouldve-made-at-least-4-6m-at-usc-under-new-rules-says-analyst.
[4] Ranajn Jindal, Breaking Down the House v. NCAA Settlement and the Possible Future of Revenue Sharing in College Athletics, The Chronicle (May 27, 2024), https://www.dukechronicle.com/article/2024/05/duke-athletics-ncaa-house-settlement-nil-revenue-sharing-college-sports-hubbard-carter.
[5] Alexis Yoder, Livvy Dunne Files Objection to House v NCAA Case, LSU Wire (Feb. 2, 2025), https://lsutigerswire.usatoday.com/story/sports/college/lsu/2025/02/02/olivia-dunne-lsu-house-settlement-objection-news-update-nil/78161156007/.