Updated June 6, 2025 at 9:29 PM MDT

A federal judge has approved the multibillion-dollar class-action legal settlement known as House v. NCAA , paving the way for a new era for college sports.

Starting this fall, colleges and universities in the NCAA's top division will be allowed to directly pay athletes for the first time. Payments will be limited by a salary cap set initially at $20.5 million per school. And more than $2 billion will be paid out to former college athletes who were not allowed to earn money while they were in school.

"Despite some compromises, the settlement agreement nevertheless will result in extraordinary relief for members of the settlement classes," U.S. District Judge Claudia Wilken wrote in Friday's order.

The approval of the settlement "marks a huge step

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