New Rules on NCAA Payment of Athletes

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A Federal judge has approved a settlement between the NCAA and student athletes that will allow schools to pay athletes directly (in addition to the traditional scholarships and similar compensation which will continue). The past few years, payments of $1M and up in some cases came from outside sources (e.g.; wealthy donors). The agreement includes a back award of $2.8 billion to athletes who competed since 2016. Going forward (including the 2025-26 seasons), each school will be permitted to pay athletes approximately $20.5 million a year for the ten years the settlement is in effect. (That total will increase each year.) It's up to the individual schools to determine how to divide that money between the sports and between athletes in each sport. Since some powerhouses like Alabama and Ohio State field 20-30 different teams in men's and women's sports, it will be interesting to see how they divide the money.

This settlement may allow smaller schools to compete better by specializing in one or two sports (even if they can't pay the entire $20.5 million) to get top teams in lesser-known sports. The big schools will be under a lot of internal pressure as to how to divide the money. Since teams have 90 or so athletes on football scholarships, $20 million won't go all that far if they try to split it up 90 ways, let alone leave money for other sports like basketball and baseball/softball. $1M+ payouts to individuals will be few and far between in the future.

Individual donors will still be able to sign endorsement agreements with athletes, but they must be legitimate endorsements, not just recruiting incentives. So a local car dealership could pay the team's quarterback to make a series of commercials but a rich guy can't just write a check to that quarterback.

https://www.espn.com/college-sports/sto ... settlement