Judge denies Houston Christian's objection to NCAA's $2.77 billion antitrust settlement agreement

A federal judged has denied the first objection to a $2.77 billion settlement of antitrust lawsuits facing the NCAA and five power conferences, ruling against Houston Christian University’s motion to intervene on Wednesday.

The small private school that has been a member of NCAA’s Division I since 2013 has been the only school to object to the preliminary agreement since it was announced in May. The full term sheet of the settlement is expected to be filed with the U.S. District Court in Northern California by Friday, an attorney for the plaintiffs’ told AP on Tuesday.

Houston Christian argued the settlement would divert funds from academics and marginalized and underserved populations as well as putting big-money college sports the over the needs of non-athlete students. The school contended its interests were not represented during settlement talks despite being an NCAA member.

Judge Claudia Wilken denied the motion, citing HCU’s voluntary membership in Division I athletics.

“HCU has not shown that it cannot avoid the NCAA’s determinations about how much money NCAA member schools should spend on Division I sports or payments to student-athletes by, for example, simply ceasing to participate in Division I sports.” she wrote.

Officials from schools and non-power conferences have said they will unfairly absorb an inordinate amount of the cost of the damages to be paid out over a 10-year period.

Schools in the non-power conferences say more than 90% of the damages will be paid out to football and basketball players from conferences that were named in the lawsuit. The NCAA will pay out the damages from operating costs, reserves, insurance and from withheld distributions to Division I conferences.

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Follow Ralph D. Russo at https://twitter.com/ralphDrussoAP

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