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Schools variance in providing financial aid for athletes should prevent it, lawyers said.
New rule by the NCAA allows for athletes to keep money from medals and remain eligible.
The university will pay Hart in 12 equal installments.
The lawsuit was filed October 2014 in Nashville, Tennessee.
University of Tennessee Athletic Director Dave Hart announced Thursday that he will step down next summer.
Association argued that appeals-court decision in O'Bannon case should stop two others
Bernard Franklin, NCAA chief inclusion officer, called it a "historic action."
Athletes like Ohio State wrestler Kyle Snyder navigate interface between Olympics, NCAA
Brenda Tracy, who says she was raped by four men, delivered a petition to the NCAA.
The NCAA had been a target of the suit that focuses on sham classes at UNC.