07/06/2025
The NCAA has been forced to pay nearly 2.8 billion in back damages over the next decade to athletes who competed in college at anytime from 2016 to 2024 as reported by ESPN.
This also allows colleges to directly pay current student-athletes a share of their revenue, starting July 1
Key aspects of the settlement:
Back Pay:
The settlement provides $2.8 billion in back pay for athletes who played between 2016 and 2024, according to NPR. This includes compensation for missed opportunities related to Name, Image, and Likeness (NIL) rights, according to CBS Sports.
Direct Payments to Current Athletes:
Colleges can now directly pay current student-athletes a share of their revenue, according to CBS Sports. This is a significant change from the previous amateurism rules, according to Sportico.com.
NIL Deals:
Student-athletes can still negotiate external NIL deals, but any third-party compensation exceeding $600 will need to be reported, according to the University of Pittsburgh.
Roster Limits and Scholarships:
The settlement eliminates scholarship limits in favor of roster limits, and colleges can allocate up to $20.5 million annually in direct benefits to players, according to the Deseret News.
How it affects different groups:
Former Athletes:
They will receive back pay for missed NIL opportunities, with the amount varying based on their sport and school.
Current Athletes:
They will be able to negotiate directly with their institutions for a share of revenue, in addition to their scholarships and NIL deals.
Colleges:
They have more flexibility in how they compensate athletes, including through direct payments and NIL deals.
The NCAA:
It will be contributing to the back pay fund and is subject to new rules regarding revenue sharing with athletes.