The House v. NCAA settlement was officially ratified on Friday, clearing the way for universities to directly pay athletes starting in 2025. The settlement is expected to formally take effect on July 1, 2025, after it was approved by Judge Claudia Wilken of the United States District Court for the Northern District of California.
This settlement marks one of the greatest shifts in the history of college athletics by paving the way for formalized pay-for-play for the first time ever. The NCAA cleared several rules banning the practice in the lead-up to the settlement, and the new reality is now here.
So how will players be paid, and what impact will this have on the structure of college football heading forward?
How will players be paid?
Starting in 2025, colleges will be able to opt into revenue sharing with athletes. Athletic departments will be allowed to use their own funds to pay players, with a cap expected to hover around $20 million annually per school. That figure is intended to cover all athlete compensation across varsity sports — not just those that generate revenue.
The number represents approximately 22% of average athletic department revenue across power conference athletic departments. The settlement estimates that the total cap will start at around $20.5 million per school in 2025-26 and could rise to nearly $33 million per school in the next decade. Between the revenue sharing, scholarships and other athletic benefits, the NCAA believes that compensation to athletes could push close to 50% of athletic revenue in many athletic departments.
There are few guidelines in place for how the money should be distributed across sports. The expectation is that more than 70% of the funds — around $15 million — will go to…
Source link : https://www.cbssports.com/college-football/news/how-college-athletes-will-be-paid-after-house-v-ncaa-settlement-nil-changes-enforcement-contracts-and-more/
Author : Shehan Jeyarajah
Publish date : 2025-06-07 02:45:00
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