U.S. District Judge Claudia Wilken approved the $2.8 billion settlement in the House v. NCAA case on Friday, which allows schools to directly compensate student-athletes. Under the new agreement, each participating Division I school can distribute up to $20.5 million annually to athletes, with that cap increasing over the next decade.

The settlement will allow schools for the first time to compensate student athletes for past and future commercial use of their names, images and likenesses.

A federal judge Friday granted final approval of the House v. NCAA settlement, a watershed agreement in college sports that permits schools to directly pay college athletes for the first time. The settlement,