How much will student athletes get paid with the new NCAA revenue-sharing plan?

With the NCAA’s Board of Governors and every Power Five conference having agreed to dismantle the amateur model, we now face an era in which student-athletes can and will receive direct payments as a result of revenue sharing. What stands to be determined is how much they will receive.

The NCAA settlement at a glance

In our previous report, we covered the length and breadth of what the NCAA has just agreed to do i.e., pay some $2.8 billion in damages to student-athletes for what has been deemed a loss of revenue based on their image and likeness, something that we have seen come to fore in recent times in the form of NIL. We also spoke to the idea that said payments could begin as soon as the fall of 2025. What we did not address, however, is just how much athletes could be paid in light of the monumental decision that has been taken. Yet, before we get to that, there is some context that is worth understanding. For starters, the deal is one that poses the potential threat of bankruptcy to the NCAA.

Indeed, that was addressed in a joint statement that was made by the organization and its five major arms. “The five autonomy conferences and the NCAA agreeing to settlement terms is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come,” the statement read. “This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students.”

What does the NCAA deal mean in principle?

As you can likely imagine, the settlement in the House v. NCAA has massive implications for the collegiate sports landscape. Not only is there the obvious subject of revenue sharing which involves the name, image, and likeness of athletes, but there is also the effect that it will have on roster sizes which pertains to the allocation of scholarships as well. Indeed, the stage is now set for literally thousands of athletes in the college system to benefit in a way that they never have.

“For the first time in history, we will now have a fair and just economic system for college athletes. I could not be more delighted. But no celebrations until the system is in place,” House lead attorney Jeffrey Kessler told CBS Sports. Regarding what that looks like in the future, it’s understood that there are a number of details to be agreed upon, but reports so far suggest that the athletic departments of schools must now prepare for what could be as much as $30 million in annual payouts, with the richest schools set to share a projected $22 million in revenue with players, while simultaneously increasing rosters sizes and scholarship allocation.

So, how much will the NCAA pay athletes?

Again, these are still early days, but what reports indicate is that the NCAA has agreed to pay the past damages over the next 10 years ($277 million annually), and will fund the payments by tapping the revenue that it currently shares with Division I schools. To that end, the schools among the Power Four conferences are now expected to pay current players approximately $20 million annually as part of a new revenue-sharing program. Understandably, that figure will vary from school to school, but the bottom line is more or less 22% of the annual revenue generated by the institutions in question.

On that note, it’s important to know that the deal is also expected to carry a cap on revenue-sharing, something that some suspect could be as high as $22 million per year. “Local decisions, I think, are good at times where schools that have more resources can do more,” ACC commissioner Jim Phillips said last week. “... So some flexibility in a final decision and a final agreement will be helpful for our schools.”

Interestingly, the NCAA is also projected to reduce its operating costs by $18 million per year, a move that will undoubtedly see the organization leaning on its reserves as a means to fund a portion of the legal settlement, some $1.1 billion according to reports. Ultimately, there are still many aspects that have to be addressed not the least of which is the issue of Title IX. Indeed, there are already those questioning how this will affect the pay gap that could occur between male and female athletes. As things stand, it’s widely understood that most involved would be hesitant to advocate for equal pay for athletes whose sports generate less money than football and men’s basketball. “It’s very likely we’re going to see non-revenue sports get massacred,” said Jason Belzer, president of Student Athlete NIL. “Title IX is going to be a very big battle. How are you going to stop it? It’s going to be tough.” With that, we can only wait and watch.