In a significant development for South Dakota’s Division I schools, Attorney General Marty Jackley announced a strategic settlement with the NCAA that promises financial relief and future opportunities for the state. The agreement effectively reduces the financial burden on South Dakota State University and the University of South Dakota, amidst a contentious $2.8 billion class action lawsuit involving student athletes.
The settlement achieves a remarkable 33% reduction in financial obligations for South Dakota schools and other smaller Division I institutions, addressing concerns that these institutions were being unfairly overcharged. The lawsuit, filed in September 2024, aimed to rectify these disparities and protect the financial interests of female athletes—a cause that resonates strongly with Attorney General Jackley.
“This settlement is for and about our student athletes. It provides approximately 33% relief to South Dakota’s universities and all other Division I schools, as well as a foundation for financial equity for female athletes,” Jackley declared during the announcement. He emphasized the importance of equitable financial structures and the preservation of the Women’s Basketball Performance Fund, reflecting South Dakota’s commitment to supporting athletes.
A pivotal aspect of the settlement is the NCAA’s commitment to engage with South Dakota as a potential host for future NCAA events. Past successes, such as last year’s Summit League men’s and women’s basketball tournaments, which generated $10 million in economic activity for the state, underscore South Dakota’s potential as an attractive venue for sporting events. “We look forward to hosting future NCAA events in South Dakota,” Jackley expressed with optimism.
Beyond mere financial relief, South Dakota’s negotiation with the NCAA represents a step towards greater collaboration and strategic planning for both athletic and economic growth in the region. The Attorney General will have a continued role in discussions about potential future reductions, indicating an ongoing partnership with the NCAA.
Furthermore, the settlement directs a $55 million NCAA surplus to ease the immediate financial obligations of Division I conferences, including the Summit League and the Missouri Valley Conference—both of which feature South Dakota schools. This surplus will reduce the first year’s financial commitments by about $2 million, further alleviating the financial pressures faced by these academic institutions.
In essence, this resolution not only lifts the burden from South Dakota schools but also enhances the state’s standing in NCAA negotiations and future athletic opportunities. With South Dakota’s rich history of hosting successful NCAA events, the prospects for future collaborations appear promising, marking a period of financial and athletic upliftment for the state.
This agreement highlights South Dakota’s proactive approach to safeguarding its educational and athletic institutions while advocating for gender equity in sports. The involvement of the South Dakota Board of Regents, alongside the Attorney General, underscores a unified front in striving for fair treatment of its schools.
South Dakota’s role in reshaping NCAA policies and commitments may serve as an inspiring model for other regions grappling with similar challenges. The story of this settlement is one of resilience, strategic advocacy, and an unwavering commitment to its student athletes’ welfare.
Ultimately, this development is a testament to South Dakota’s dedication to fostering an equitable environment for its institutions, advocating for its student athletes, and highlighting the state as a valuable partner in the world of collegiate sports.