SIOUX FALLS, S.D. (KELO) — The state of South Dakota and its two NCAA Division I universities will get their day in state court on a $2.8 billion settlement between the NCAA and Power Four conferences.
The settlement is related to Name, Image and Likeness, (NIL) money that can be earned by college student athletes.
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Federal judge Karen Schreier granted the state’s motion for a remand to court in South Dakota. The state, along with the state Board of Regents, the University of South Dakota and South Dakota State University, said the $2.8 billion settlement treats smaller Division I universities unfairly. The agreement would unfairly require smaller Division I universities to be responsible for a disproportionate share of the settlement, the state’s laws suit claims.
Students at smaller universities would earn significantly less than those at larger universities or those at Power Four conferences, the lawsuit claims.
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The state and university lawsuit said USD and SDSU and other state universities have been denied a voice in the settlement.
The NCAA wanted to move the lawsuit out of South Dakota circuit court and into a federal court.
The judge’s ruling was announced on Monday. No date for a lawsuit hearing has been set yet.