South Dakota universities say NCAA settlement is unfair

(The Center Square) - Two South Dakota universities say the NCAA settlement that would allow student athletes to receive compensation unfairly forces smaller schools to shoulder a disproportionate amount of the settlement cost, according to a complaint South Dakota Attorney General Marty Jackley filed Tuesday.

The NCAA settlement calls for $2.8 billion in monetary relief for past and present student athletes. $1.15 billion will come from the NCAA’s reserves, and $1.65 billion will be paid by reducing the NCAA’s disbursements to conferences from the Final Four Men’s Basketball revenues over the next decade, according to the complaint.

Of that $1.65 billion, 60% of it would be withheld from disbursements made to non-Power 4 conferences and their member institutions, none of whom were defendants in the cases, the complaint reads.

South Dakota State University and the University of South Dakota say the settlement would reduce NCAA revenue for their schools and have “significant implications” for their athletic programs.

“The South Dakota Board of Regents, the Attorney General's Office, and our universities are taking action to voice our concerns about the disproportionate allocation of our state's Division I athletic programs in the proposed NCAA settlement,” said South Dakota Board of Regents President Tim Rave. “This settlement will significantly impact our two largest athletic programs, and we appreciate the support of the Attorney General's office as we navigate this issue.”

The complaint claims the settlement goes against the NCAA’s amateurism policy, which prohibits student-athletes from being compensated by a member institution. Amending the policy would require a vote of full membership, of which there was none, the complaint said.

“As a former college student-athlete, I believe strongly in a system that presents our athletes with opportunities to compete and treats all of our athletes fair and equal,” Jackley said. “I am disappointed that our South Dakota athletes and universities are paying the price for a settlement that did not involve any of our conduct. This settlement unlawfully and blatantly discriminates against female student-athletes by limiting them to less than 10 percent of the proceeds.”

The universities are seeking a trial by jury, damages, and an injunction to protect against “unjust” disbursements.

“South Dakota State University appreciates the efforts of the South Dakota Board of Regents and the Attorney General's Office in addressing our state's concerns surrounding the proposed NCAA settlement poses significant implications for our athletic programs without providing comprehensive benefits for our student-athletes. We appreciate the support from the Attorney General's Office as we navigate this matter to seek fair outcomes for our state and universities,” said South Dakota State University President Barry Dunn.

Similarly, University of South Dakota President Sheila Gestring said their school’s athletic program and ability to support student athletes would be severely impacted.

“The University of South Dakota is grateful for the continued support of the Attorney General’s Office as we work through our concerns to guarantee equitable treatment for our state and universities,” said Gestring.