$1.4 Billion Dollar Lawsuit Might Snatch ‘The NIL Dream’ From NCAA Stars Angel Reese, Caitlin Clark and Others

The NCAA is engaged in a legal dispute that might have serious financial repercussions for collegiate athletes like Angele Reese and Caitlin Clark. Plaintiffs in House v. NCAA are requesting class certification on behalf of a number of athletes and are seeking damages that might top $1.4 billion.

If this antitrust complaint is successful, damages might be quadrupled to nearly $3 billion. But how does it affect college athletes?

The impact on college athletes like Angel Reese and others

According to ON3 NIL, college athletes like Angel Reese and Caitlin Clark are among the highest-valued in the country. Reese currently ranks 7th with a valuation of $1.7 million, while Caitlin Clark’s valuation stands at $752,000. The Name, Image and Likeness (NIL) rules have opened up lucrative endorsement opportunities for college athletes.

Reese, aware of the income disparity she may face once drafted into the WNBA, has been vocal about seizing every opportunity while still in college.

However, the lawsuit’s outcome could jeopardize the financial prospects of college athletes who have embraced the NIL era. While LeBron James’ son and USC guard Bronny James holds the highest NIL valuation with $6.1M, if the rulings go against the NCAA, even James would lose the monetary benefits coming through NIL deals.

The potential damages sought in this case could not only impact the NCAA but also reshape the financial landscape for college stars like Reese and Clark.

Read More: Months After Disappointing Loss to Arch-Rival Angel Reese, Caitlin Clark Cloning Stephen Curry Gets Validated by NBA Hall of Famer

While the legal battle intensifies regarding the certification of classes seeking monetary damages, college athletes seek certification for classes covering various athlete groups and spanning several years. If these classes are certified, they could encompass over 14,500 college athletes and potentially lead to billions of dollars in damages.

The challenges to NCAA’s NIL rules

The lawsuit specifically challenges the NCAA’s rules that prohibit college athletes from receiving NIL compensation. It’s worth noting that the litigation was initiated before 2021, the year when the NCAA significantly relaxed NIL restrictions. The NCAA has taken a hands-off approach to enforcing these rules, even in cases where collectives have faced accusations of blurring the lines between NIL and pay-for-play.

The recent class-action status granted to this antitrust lawsuit could open the door for athletes to receive NIL compensation directly from their schools for various reasons. This development represents a significant shift in collegiate sports and athletes’ financial rights.

Watch This Story: “Whatever Drake Said”: Months After Canadian Rapper Slid in Her DMs Angel Reese Reminisces His Lyrics in Latest Feat

While the NCAA faces legal consequences, the result of the hearing might have some negative implications on athletes such as Angel Reese and Caitlin Clark among thousands of others.