The NCAA has agreed to pay $303 million over three years to settle a class action lawsuit brought forward by volunteer coaches.
The lawsuit representing 7,700 volunteer college coaches alleges the NCAA engaged in illegal wage fixing under a rule that prohibited schools from paying them.
The coaches claimed that the organization fixed their compensation at $0, suppressing competition for their labor, which they allege violates U.S. antitrust law.
In a letter sent to membership on Monday, NCAA President Charlie Baker said the settlement will be financed by “distribution reductions, net assets and national office contributions.”
Each coach from the settlement will receive an approximate $39,200 before expenses and fees, according to ESPN, though school, sport and years worked all factor into individual compensation.
From 1992 through July 2023, the NCAA had a cap on the number of paid coaches schools could have in Division I, and certain sports were given one “volunteer coach” spot who would not be paid and were restricted from receiving other benefits.
The lawsuit claims those volunteer spots were examples of wage fixing and “unlawful agreements in restraint of the trade and commerce,” ESPN reported.
“This combination and conspiracy by the NCAA and its member schools (which possess a dominant position in the relevant market) has resulted in, and will, until restrained, continue to result in, anti-competitive effects,” including fixing compensation “at the artificially low level of zero,” the lawsuit says, according to ESPN.
In 2023, the NCAA removed its policy that allowed volunteer coaching positions, which opened up room for more paid coaches on rosters if schools were willing to pay.
The proposed settlement notes that many class members will receive a six-figure amount.
The class includes any volunteer coach who worked for a Division I athletic program other than baseball at any point from March 17, 2019, to June 20, 2023.
In November 2022, baseball coaches filed a similar lawsuit and reached a settlement with the NCAA earlier this year for $49.25 million.
“We are incredibly proud of this settlement which, if approved, will provide significant and meaningful compensation to thousands of hard-working coaches,” the lawyers for the coaches said in a statement, according to Front Office Sports. “We look forward to the approval process and are committed to ensuring that these funds are distributed to coaches in a fair and efficient manner.”
The settlement is still awaiting approval from Judge William B. Shubb in the U.S. District Court for the Eastern District of California.
Drinks on the volunteers!!
Pay em in beer!
To my fellow volunteer coaches, go to page 41 to get a sense of what your compensation will look like:
https://ncaavolunteercoachlawsuit.com/media/ey5ls5oq/111025-joint-declaration-in-support-of-plaintiffs-motion.pdf
TLDR:
1) this will be paid out in thirds. Once 30 days after the settlement, once one year after the settlement, once one year after that.
2) payment will be based on the lowest salary coach on the staff during your time. They will then apply a “step down” % calculated from some fancy formula that takes into account the lowest and second lowest paid coach on staff.
3) They will then take this amount and round back up so that the total amount equals the 303 million dollar… Read more »
As someone who started their coaching career as a volunteer assistant, I’m confused on what these coaches were expecting when they agreed to be VOLUNTEER assistants? Doesn’t volunteer mean you are doing something for free?
Where do I sign up?
Can’t wait to start getting paid for summer swim 😉
Any idea how many swimming coaches are included in this settlement?
Not sure. But I can guess that schools now needing to find $300M to pay this will not be helpful for swim team budgets…
Not helpful, sure. However, it’s on the sport to become economically viable, not on “volunteers” working insane hours pro bono.
Who will use “volunteers” again if they run the risk of penalty for the use of their “free” services after the fact?
Better question: why would someone “volunteer” expecting to be paid? If they end up doing more “work” than they expected, wouldn’t they just stop “volunteering”?
Best question: why is the NCAA hampering free trade?
Not free trade! Exploitation of labor! Coercion… extra work in trade for a good review for the real job. Head coaches suppressing the wages of their staff while they negotiate raises for themselves. We know it’s a fixed pool so let’s just keep the money among select few. Running camps with volunteers while coaches double sometimes even triple their college income. At some point the house of cards comes down!
Free trade promotes economic growth! That doesn’t mean head coaches make more money that means everyone makes more money.
Dear Jumbled, trade is free only for your right to participate in it or not. Typically, if you are anxious over your participation, you may walk away from the opportunity; regardless of what others have negotiated.
Volunteers exercise their rights most effectively. No pay is what they have negotiated, or else they would be called employees who have traded their labor for material reward.
The economy will grow no matter what you decide with no apologies. As it should.
I guess if you want to call it that. It’s pretty clear that the decision was predicated on wage fixing, which is the opposite of free trade.
Read the article. The NCAA agreed to the settlement not individual schools.