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NCAA Approves Historic Rule Changes to Allow Direct Athlete Compensation

The NCAA Division I Board's conditional approval of sweeping reforms paves the way for schools to pay athletes, pending final judicial approval of a $2.8 billion settlement.

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 has approved the removal of 153 rules, allowing schools to directly compensate athletes for the first time in history.
  • The reforms, which include a $20.5 million annual payment cap for major schools, require final approval from Judge Claudia Wilken to take effect.
  • Sport-specific roster limits will replace scholarship caps, with some details still under review following judicial feedback.
  • A new NIL clearinghouse will monitor third-party deals exceeding $600, alongside an enforcement body developed by defendant conferences to ensure compliance.
  • Schools must decide by June 15 whether to opt into the new system, with implementation targeted for the 2025-26 academic year if judicial approval is granted.