The NCAA and all five power five conferences — including the Big Ten, SEC, Pac-12, Big 12 and ACC — reached a settlement agreement on Thursday that will change the economics behind college sports. 

The 10-year settlement will pay back $2.75 billion in damages to college athletes. It also allows colleges and universities to share revenue directly with student athletes through payments and benefits. 

In the first year of the settlement, each school can share 22% of the average Power 5 school’s revenues, which is estimated to be around $20 million per school, per year. This money would be provided in addition to scholarships, third-party NIL payments, healthcare and other benefits that college athletes already received. 

According to CBS Sports, Stanford, which has the biggest athletic department in the nation at 36 varsity teams, may receive “30% of an ACC revenue share to start when it switches conferences this fall.”

The settlement resolves three pending antitrust lawsuits, House v. NCAA, Hubbard v. NCAA and Carter v. NCAA, all of which challenge NCAA limits on compensation. Junior women’s soccer player Nya Harrison is a key plaintiff in the Carter v. NCAA case.

Other Cardinal athletes have been strong advocates of athlete compensation, casting away the common amateurism argument. 

According to a University spokesperson, Stanford is still determining how it will approach revenue sharing with student-athletes going forward. 

“Stanford has been closely following the House case, and we are aware of the proposed settlement that has been agreed to by the NCAA and conferences,” wrote the spokesperson.

“Stanford will be working to assess the implications of the settlement and strategize the best path forward for Cardinal Athletics. We are committed to Stanford’s continued success in developing champions, both in competition and in the classroom.”