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NCAA Approves Conditional Rule Changes to Allow Direct Athlete Payments

The Division I Board's landmark decision awaits final judicial approval, with schools required to opt in by June 15 for a July 1 implementation.

Apr 19, 2025; Fort Worth, TX, USA; A view of the NCAA logo and trophy before the 2025 Women's National Gymnastics Championship at Dickies Arena. Mandatory Credit: Jerome Miron-Imagn Images/File Photo
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Overview

  • The NCAA Division I Board of Directors conditionally adopted nine legislative changes enabling direct athlete compensation, pending final approval of a $2.8 billion settlement by Judge Claudia Wilken.
  • Schools opting into the new system can pay athletes up to 22% of media, ticket, and sponsorship revenue, capped at $20.5 million annually, starting in the 2025–26 academic year.
  • The changes eliminate scholarship caps, introduce sport-specific roster limits, and establish a clearinghouse to oversee NIL deals exceeding $600.
  • An enforcement body will oversee compliance with the new rules, including direct payments, roster limits, and NIL agreements, ensuring accountability across participating institutions.
  • Institutions must opt in by June 15, with major conferences expected to participate, while some, like the Ivy League, have chosen to maintain the current structure.