NCAA Settlement Allows Schools $20.5M Athlete Payments Annually

The recent $2.8 billion NCAA settlement, approved by Judge Claudia Wilken, allows schools to directly pay student-athletes using up to 22 percent of their revenue, with an initial cap of about $20.5 million per school set to increase annually. Big 12 commissioner Brett Yormark has expressed strong support for the settlement, emphasizing the importance of implementing the new system with structure, transparency, and fairness to ensure the success of student-athletes. Conference commissioners, including those from the SEC, ACC, Big Ten, Big 12, and Pac-12, are working closely with the new College Sports Commission to develop enforcement rules and guardrails, responding to coaches’ calls for oversight and punitive measures for violations. University programs, such as Kentucky Athletics, anticipate significant budget increases to accommodate revenue sharing with athletes and remain competitive, while institutions like West Virginia University are preparing to fully participate in the new revenue-sharing model. The settlement also requires NIL deals valued at $600 or more to be processed through a clearinghouse, NIL Go, which will launch soon. This transformation marks a new era in college sports, blending athlete compensation with maintaining competitive integrity across conferences.