The landscape of college athletics is on the brink of significant changes as programs brace for the effects of the pending NCAA House settlement, which received preliminary approval on October 7th. The landmark agreement introduces a revenue-sharing model that has the potential to reshape how schools support student-athletes and manage their athletic departments. 

With a revenue share structure expected to take effect next year, universities are strategizing to adapt to Division I College Athletics’ new financial needs. Many expect the proposed settlement to become fully approved this Spring. Still, there has undoubtedly been pushback on specific parameters provided, specifically the new roster limit structure, which may put many student-athletes’ dreams of Division I athletics at risk. 

Initial Revenue Share Cap Has Been Determined 

One component of this settlement is that student-athletes will receive up to 22% of the average revenue that Power Conference schools generate annually. Schools at these NCAA DI conferences were informed that the projected “cap” that schools will work under for the 2025-2026 season would be $20.5 million, as Ross Dellenger of Yahoo Sports reported. This revenue share structure of college athletics is expected to start on July 1st, 2025. 

Some projections of this figure were as high as $23 million, so the $20.5 Million is slightly lower than expected by some who have followed this settlement closely. The settlement also notes that this cap would receive a 4% increase for the following two seasons. 

It is important to note that there will be no floor for how much revenue a college program that opts into the settlement parameters needs to share with its student-athletes. Schools are expected to have total control over how they disperse these funds to their athletes next season. The expectation is that many athletic departments will use approximately 90% of the funds for their football and men’s basketball programs. This would follow the formula for current and former student-athletes expected to receive back pay for missed NIL opportunities, another component of this settlement we detailed in our previous article. 

How Colleges Are Preparing for the Revenue Share Structure 

The expectation of increased financial responsibility for athletic departments next year has already impacted how these programs are trying to generate additional revenue. In addition to programs requesting donations from fans and alumni, some power conference programs have already implemented other strategies. 

Universities like Tennessee and Arkansas have added fees to gameday expenses. Tennessee has added a 10% “talent fee” on all ticket purchases for this season and announced that student tickets will increase from $20 to $25 next season to cover a portion of the increased expenses. The Director of Athletics at the University of Arkansas wrote an open letter outlining their plan, including a new 3% fee for all concession purchases at home football games this season. 

Arkansas also announced that it will explore corporate branding opportunities. Other programs, such as Ohio State, have also mentioned the possibility of adding jersey patches, on-field sponsorships, or even naming rights to the stadium to generate more money. 

Michigan University announced another unique way of generating additional revenue for its student-athletes when it announced its new NIL partnership with the platform Passes. Passes is a direct-to-fan engagement and monetization platform that allows Michigan fans to access exclusive content, merchandise, and experiences. We will continue to see athletic departments find creative ways to offset the increased financial burden they expect to shoulder starting next season. 

Pushback on the Proposed New Roster Limits 

Another significant component of the House Settlement is that schools who opt in must follow a roster limit structure rather than the current scholarship limit structure used at the NCAA DI level.

Rather than limiting the number of scholarship student-athletes on a roster, schools will be permitted to offer a scholarship to every player on a team if they choose to do so. The NCAA will limit the maximum number of student-athletes allowed on a roster; under this new model, every athlete can receive an athletic scholarship, but the schools are not required to provide a scholarship to each student-athlete. 

Increased scholarship opportunities for student-athletes can be a favorable change. Still, several articles have been written on the negative aspect of what these limits could mean for student-athletes with Division I aspirations. As reported by ESPN, this new structure would lower the maximum roster size in 19 of the 43 NCAA Sports.  

For example, the roster limit increase in football means that 105 athletes would be eligible to receive athletic scholarships, an increase from the current 85 scholarship limit. However, the average roster size on a football team during the 2023-2024 season at the Division I level was 121.4, meaning at least 15 student-athletes currently on a roster would not be able to compete next season under these new rules. 

Due to these potential changes, programs have contacted student-athletes who’ve had verbal commitments at universities, some for over a year, letting them know that their offer is now rescinded due to the pending roster limit. The following image shows the sports that are set to lose the most total roster spots under the new settlement’s roster limits. 

It is also expected that Title IX will play a role in how college programs utilize scholarships. Certain men’s non-revenue sports that aren’t offered as women’s sports may be negatively impacted to balance the scholarships available for female student-athletes. 

Although it has been reported that 790 additional scholarship sports will be available across 40 NCAA sports, 4,739 roster opportunities would be removed for student-athletes who want to compete at the Division I level. 

There is also concern that these roster limits negatively affect walk-on Division I athletes, who have often been central to some of the most iconic stories in college sports. Heisman Trophy winner Baker Mayfield and future NFL Hall of Famer JJ Watt started their college careers as walk-ons, inspiring many student-athletes to follow their athletic dreams. 

Important Upcoming Dates to Know 

A few steps must be taken before this settlement receives full approval. We are currently in the state of the settlement where current and former student-athletes can claim their share of the $2.8 billion in backpay from potential missed NIL opportunities. If you competed on an NCAA Division I team from June 2016 to now, you can check if you qualify for the settlement at https://www.collegeathletecompensation.com. 

The notable dates for the progression of the settlement are as follows. 

  • December 17th, 2024- An allocation estimate will be made available to anyone who may receive compensation from the $2.8 billion in back pay. 
  • January 31st, 2025—This is the deadline for athletes to opt in, opt out, or submit objections to the settlement parameters. 
  • March 3rd, 2025- This is when a motion for final approval of the House v. NCAA Settlement will occur. The final approval hearing is scheduled for April 7th, 2025. 

SportsRecruits will update you as more information becomes available. We encourage you to follow us on our social media channels to ensure you are up-to-date and prepared for this monumental change in college athletics! 

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