MSU Athletics plans for potential $25M settlement impact

LANSING, Mich. (WLNS) — The athletics department at Michigan State University is financially preparing for the impact of House v. NCAA , a class-action lawsuit that would require universities to compensate all Division I athletes who have played since 2016 for the use of their name, image, and likeness.

According to the most recent community letter from MSU VP Director of Athletics Alan Haller, the athletic department’s 2025-2026 budget will include “approximately $25-30 million in additional expenses” when considering “increased scholarship numbers, revenue sharing, and a reduction in NCAA funds.”

These changes would be the direct result of the class action lawsuit.

According to the department, the settlement would require them to provide $22-23 million in revenue directly to student athletes. The NCAA would also be required to pay $3 billion in back damages to Division I athletes who played between 2016 and 2021, and to cover those costs, MSU’s revenue share from the NCAA will be $1.5 million less for the next 10 years.

Under the settlement, previous stipulations limiting the number of scholarships that each sport can provide will be replaced with limits on how many athletes can be on each sport’s roster—beginning in Fall 2025.

“This could allow for additional financial opportunities for more Spartan student-athletes, as institutions will be able to make individual decisions regarding the number of scholarships provided for each sport,” writes Haller in his newsletter.

House v. NCAA is currently moving through the legal process of finalizing its terms. It is scheduled for final approval in April.

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