NCAA D1 | Schools Allowed To Pay Athletes Direclty
- WATCH HER PLAY
- Apr 21
- 2 min read
The NCAA has approved a settlement that permits member schools to directly compensate student-athletes. This move marks a significant departure from the organization's long-standing amateurism model and addresses growing concerns over athlete compensation.
The settlement, stemming from the House v. NCAA case, involves a $2.8 billion agreement to be distributed over a decade to more than 14,000 current and former Division I athletes who competed between 2016 and 2024. These athletes were previously barred from profiting from their name, image, and likeness (NIL) due to NCAA restrictions.
Beyond backpay, the settlement introduces a revenue-sharing model allowing schools to allocate up to $21 million annually—approximately 22% of their athletic revenue—to compensate athletes starting in 2025.
Key Provisions and Implications
Direct Payments: Schools can now provide direct financial compensation to student-athletes, a practice previously prohibited under NCAA rules.
NIL Opportunities: Athletes retain the right to engage in NIL deals with third parties, supplementing their income beyond institutional payments.
Scholarship Adjustments: The settlement eliminates traditional scholarship limits, replacing them with roster caps to manage team sizes and budgets.
These changes aim to modernize collegiate athletics, aligning compensation practices with the substantial revenues generated by college sports programs.
While the settlement represents progress, it has sparked debates over potential consequences. There's apprehension that revenue-sharing models may disproportionately benefit male athletes, particularly in revenue-generating sports like football and men's basketball, potentially leading to gender equity issues.
Furthermore, smaller programs fear that reallocating funds to athlete compensation could strain budgets, threatening the viability of less profitable sports.
Looking ahead, the focus will be on implementing equitable compensation structures while maintaining the integrity and diversity of collegiate athletics.
The final approval of the settlement is anticipated in the coming weeks, setting the stage for a new era where athletes are duly recognized and compensated for their roles in the success of college sports programs.
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