The recent House v. NCAA settlement was ratified on a Friday, allowing universities to initiate direct payments to athletes from July 1, 2025. This pivotal decision is changing the landscape of college athletics, enabling formalized pay-for-play for the first time.

How will players be paid?

Starting in 2025, schools can share revenue with athletes, using their own funds to offer payments capped at around $20 million annually per institution to support all varsity sports. This change could mean compensation reaching 50% of athletic revenue in certain departments. However, distribution guidelines remain sparse, with expectations that a majority will benefit football programs.

Eligible Schools

All NCAA institutions opting into this settlement can participate in revenue sharing, including those in major conferences like the SEC and Big Ten. For instance, the AAC requires a minimum of $10 million shared with student-athletes over the next three years.

Oversight of Compensation

The regulation of this new structure will fall under the Power Four conferences, who will oversee player compensation and establish the College Sports Commission to handle administrative duties and enforce compliance.

Future of NIL Contracts

Players will still be able to enter into NIL (name, image, likeness) contracts, which must be reviewed through a clearinghouse system to ensure fair market value. This may impact existing NIL arrangements with booster groups while fostering transparency in athlete compensation.

Conclusion

While the House vs. NCAA settlement represents a substantial shift towards pay-for-play, numerous concerns remain regarding the management of contracts, athlete movement, and regulatory oversight in an evolving college sports environment. The settlement may serve as a foundation for future legislation addressing these enduring complexities.