Megan Ives
South Dakota State's Angel Johnson (21) celebrates a touchdown during a 41-10 win over Southern Illinois on Nov. 16, 2024.
South Dakota and the NCAA have reached a settlement in a Name, Image, and Likeness (NIL) lawsuit filed last year, Attorney General Marty Jackley announced Wednesday.
The lawsuit, filed in 2024, challenged a proposed $2.8 billion agreement to compensate NCAA athletes for past participation in Division I sports, arguing it was unfair to smaller schools such as South Dakota State University and the University of South Dakota.
According to a Wednesday news release from Jackley, the settlement reduces the first-year payment for the Summit League and Missouri Valley Football conferences by 33%, approximately $2 million. The release also stated the NCAA will use a $55 million budget surplus to lower the amount Division I conferences pay in the first year of the $2.8 billion settlement.
“This settlement is for and about our student athletes,” Jackley said in a statement.
The $2.8 billion settlement originated from a 2021 U.S. Supreme Court ruling that the NCAA’s prohibition on athlete compensation violated antitrust laws, following three class-action lawsuits filed by students.
The release indicated the settlement also establishes a foundation for financial equity for female athletes, with no reductions to the recently created Women’s Basketball Performance Fund. The fund, established in January, provides rewards for teams advancing to the Division I Women’s Basketball Championship.
The settlement also stipulates that the NCAA president and some staff will meet with the presidents of SDSU, USD, the Summit League, and Sioux Falls leaders to discuss NCAA issues affecting state schools. The terms specify that the NCAA president “will acknowledge and credit the Summit League for the large attendance numbers the League has generated at the men’s and women’s basketball championships as a result of hosting the events in South Dakota.”
The NCAA will also pay the South Dakota Board of Regents $24,815 for expenses incurred during the lawsuit.
Although South Dakota’s lawsuit has settled, the final approval of the $2.8 billion settlement, House v. NCAA, is still waiting for approval from a federal judge in California.