New Rules for NCAA Revenue Sharing to College Student Athletes by Owen Borville February 17, 2025
New rules have been recently approved by the NCAA (National Collegiate Athletic Association), which is the organization that governs intercollegiate athletics in the United States including eligibility requirements for student-athletes.
These new rules allow for student athletes to benefit financially from their own name, image, and likeness (NIL) used during athletic competition and training and also throughout the year in various situations.
In addition, new rules allow for immediate eligibility for transferring students and the establishment of a "transfer portal" to help connect student athletes wishing to transfer to another institution with institutions that are looking for new transfer athletes.
Also, a new revenue-sharing model is being designed by the NCAA to allow member institutions to share a percentage of their revenue from ticket sales, media rights, and sponsorships with student-athletes. This revenue-sharing model is expected to be completed and installed on July 1, 2025.
For many years, NCAA institutions were allowed to benefit from these revenues without sharing the revenue with their players. However, recent changes will allow revenue sharing among NCAA institutions and student athletes.
There will also be a cap on the revenue-sharing model for each institution (up to 22 percent of annual athletic department revenue), which is expected to be $20.5 million for the 2025-26 season. This cap is expected to increase by 4 percent each of the next two seasons and is expected to rise to $30 million in the next ten years.
The amount of revenue-share each student athlete receives will depend on the sport, playing time, and the revenue their school brings in. Institutions will have control over how the revenue-shares will be distributed among student athletes.
The new model is part of a settlement that will end lawsuits challenging NCAA rules about NIL and payments or revenue shares to student athletes. The settlement is expected to be approved in April of 2025.
This new model of college athletics will have a significant impact on student-athletes and their institutions as revenue sharing begins.
The majority of the revenue sharing is expected to go to student-athletes in football and men's basketball, because these sports are the largest revenue generators.
Some people are concerned that the new revenue sharing model will violate Title IX laws that mandate equality among men's and women's sports, however, the new revenue-sharing model will be open to all sports, including men's and women's sports and will be based on revenue generated in each sport at each institution.
Some women's sports have shown potential for significant revenue sharing, such as women's basketball, softball, soccer, gymnastics, and other sports. The new revenue sharing model and NIL will open up opportunities for student-athletes in all sports, particularly with private sponsorships.
The largest NCAA athletics conferences, particularly the Big Ten, SEC, ACC, and Big 12, are planning to create a separate entity to manage and enforce revenue-sharing and NIL deals.
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New rules have been recently approved by the NCAA (National Collegiate Athletic Association), which is the organization that governs intercollegiate athletics in the United States including eligibility requirements for student-athletes.
These new rules allow for student athletes to benefit financially from their own name, image, and likeness (NIL) used during athletic competition and training and also throughout the year in various situations.
In addition, new rules allow for immediate eligibility for transferring students and the establishment of a "transfer portal" to help connect student athletes wishing to transfer to another institution with institutions that are looking for new transfer athletes.
Also, a new revenue-sharing model is being designed by the NCAA to allow member institutions to share a percentage of their revenue from ticket sales, media rights, and sponsorships with student-athletes. This revenue-sharing model is expected to be completed and installed on July 1, 2025.
For many years, NCAA institutions were allowed to benefit from these revenues without sharing the revenue with their players. However, recent changes will allow revenue sharing among NCAA institutions and student athletes.
There will also be a cap on the revenue-sharing model for each institution (up to 22 percent of annual athletic department revenue), which is expected to be $20.5 million for the 2025-26 season. This cap is expected to increase by 4 percent each of the next two seasons and is expected to rise to $30 million in the next ten years.
The amount of revenue-share each student athlete receives will depend on the sport, playing time, and the revenue their school brings in. Institutions will have control over how the revenue-shares will be distributed among student athletes.
The new model is part of a settlement that will end lawsuits challenging NCAA rules about NIL and payments or revenue shares to student athletes. The settlement is expected to be approved in April of 2025.
This new model of college athletics will have a significant impact on student-athletes and their institutions as revenue sharing begins.
The majority of the revenue sharing is expected to go to student-athletes in football and men's basketball, because these sports are the largest revenue generators.
Some people are concerned that the new revenue sharing model will violate Title IX laws that mandate equality among men's and women's sports, however, the new revenue-sharing model will be open to all sports, including men's and women's sports and will be based on revenue generated in each sport at each institution.
Some women's sports have shown potential for significant revenue sharing, such as women's basketball, softball, soccer, gymnastics, and other sports. The new revenue sharing model and NIL will open up opportunities for student-athletes in all sports, particularly with private sponsorships.
The largest NCAA athletics conferences, particularly the Big Ten, SEC, ACC, and Big 12, are planning to create a separate entity to manage and enforce revenue-sharing and NIL deals.
The Rams Club
Front Office Sports
SportsRecruits Blog
awevideo.com
University Business
ncaa.org
nil-ncaa.com
Yahoo
Athletic Business