FAQs

WARNING ABOUT POTENTIAL TAX CONSEQUENCES

 You should seek advice from a registered tax preparer or competent tax advisor about your tax obligations for any payments that you are entitled to receive under the Settlement. However, the Court overseeing the Settlement has directed us to provide the following disclosure:

THE TAX CONSEQUENCES OF ANY AGREEMENT YOU SIGN REGARDING YOUR CLAIM MAY VARY DEPENDING ON THE SPECIFIC TERMS OF THAT AGREEMENT. WITH CERTAIN TRANSACTION STRUCTURES, YOU MAY BE REQUIRED TO PAY INCOME TAXES ON THE FULL AMOUNT OF THE PAYMENTS THAT YOU ARE ENTITLED TO UNDER THE SETTLEMENT (EVEN IF THE RESULTING TAX LIABILITY EXCEEDS THE AMOUNT YOU RECEIVED UNDER THE AGREEMENT).

A TRANSACTION STRUCTURED AS AN OUTRIGHT OR “TRUE” SALE MAY REMOVE FUTURE SETTLEMENT PAYMENTS FROM YOUR GROSS INCOME FOR FEDERAL AND STATE INCOME TAX PURPOSES, IN WHICH CASE YOU WOULD INSTEAD LIKELY PAY TAX ON THE PURCHASE PRICE YOU RECEIVE. AS A RESULT OF A SALE, YOU WOULD ALSO BE FORFEITING ANY AND ALL RIGHTS TO RECEIVE ADDITIONAL INCOME OR FUTURE PAYMENTS UNDER THE FOURTH AMENDED STIPULATION AND SETTLEMENT AGREEMENT, IN RE: COLLEGE ATHLETE NIL LITIGATION, NO. 4:20-CV-03919 (THE “SETTLEMENT AGREEMENT”). YOU SHOULD CONSULT WITH A COMPETENT TAX ADVISOR REGARDING THE SPECIFIC TAX CONSEQUENCES OF YOUR PARTICULAR AGREEMENT BEFORE SIGNING THE AGREEMENT.

 

Additional information, including information about the potential tax consequences of selling your right to receive settlement payments, may be found on the Settlement website at: https://www.collegeathletecompensation.com/frequently-asked-questions.aspx

  • You should receive notice from class counsel if you’re a class member. Even if you haven’t received notice, you can reach out to class counsel to confirm. Most commonly, that can be done through settlement websites like those for the House v. NCAA (NIL Settlement)

    Note that there is a deadline for filing claims into the settlement and missing the deadline can result in a class member losing the right to settlement payments. You should review the settlement website and consult with class counsel if you have questions.

  • Selling your claim refers to a transaction where a class member agrees to a formal contract where, in exchange for granting Sycamore Grove rights to distribution payments from the settlement, you receive an upfront cash payment.

    At closing, you’ll receive the upfront cash payment (which you can use, save or invest as you see fit) and any future settlement payments will go Sycamore Grove.

    • Your first step is to reach out to Sycamore Grove, which can be done through our contact form.

    • You will hear back from a member of our investment team if we need additional information.

    • Sycamore Grove will then give you the current pricing for your claim.

    • If you want to move forward with a sale at the indicated price, we will send a formal contract for you to review. Even though we strive to make the agreement simple and straightforward, we nonetheless recommend that you engage an attorney to review the document.

    • Once the contract is signed by you and Sycamore Grove and certain closing conditions are met (including, for example, confirming your identity, class membership, and your claim amount or allocation estimate), we will send payment to you within a few days.

Get Started Selling My Claim

Sycamore Grove is not affiliated with class counsel or the settlement administrator and is not providing legal, investment, or tax advice to class members. For questions about eligibility and specifics of the settlement terms, please consult the settlement website.