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NCAA Settlement Clears Path for Direct Athlete Pay Beginning July 2025

A new $20.5 million revenue-sharing model must be implemented under College Sports Commission oversight, raising concerns about cuts to nonrevenue teams

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NCAA president Charlie Baker is shown speaking during the organization’s annual convention on Jan. 15, 2025, in Nashville, Tenn. Following last week’s House v. NCAA settlement, the NCAA will be left running college tournaments and disbursing profits from the March Madness TV contract but doing little else. (AP Photo/George Walker IV,File)
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Overview

  • The settlement approved on June 6 requires colleges to start direct payments on July 1, 2025 and provides nearly $2.8 billion in retroactive damages for athletes dating back to 2016.
  • Each university can distribute up to $20.5 million annually on top of scholarships, with roughly 75% earmarked for football, 15% for men’s basketball, 5% for women’s basketball and 5% for other sports.
  • The newly formed College Sports Commission will enforce compensation rules and partner with Deloitte’s NIL GO clearinghouse to vet all endorsement deals valued at $600 or more.
  • Athletic departments warn that smaller and nonrevenue programs may be cut or scaled back as schools balance budgets to fund the new revenue-sharing commitments.
  • NCAA president Charlie Baker has cautioned that the transition to direct pay will involve a learning curve as conferences and institutions adapt to complex rulemaking and enforcement.