This lawsuit has led to a historic change in college sports: schools will be allowed to pay student-athletes directly for the use of their name, image and likeness (NIL) starting July 2025. This will end the old amateurism model.

Athletes filed multiple lawsuits against the NCAA because they felt their earning power was restricted. The settlement prevents future lawsuits and helps schools get a better handle on the NIL market.

Starting in the 2025-2026 college year, each school may distribute approximately $20.5 million annually to their student-athletes through revenue sharing. This amount is in addition to scholarships and other facilities.

Only Power 4 schools are required to participate in this new arrangement. Other Division I schools may voluntarily participate through an “opt-in” arrangement, which must be submitted by June 15, 2025.

NIL deals with external brands remain possible. New is that schools may now also pay out directly. All deals, especially those through boosters, will be more strictly checked for their business character.

From July 1, 2025, the first payments may be made. This coincides with the introduction of new rules such as roster limits, designated athletes and NIL portals.

These are athletes who are allowed to remain outside the maximum team size. This prevents current team members from losing their spots due to the new roster limits.

A new organization called the College Sports Commission will oversee compliance with rules around payments, NIL deals and team sizes.

More opportunities and more responsibility. Student-athletes can earn money not only through NIL, but now directly from their school. At the same time, knowledge of rules and compliance is crucial.

Slamstox is ready to help student-athletes every step of the way. We have experience with NIL, deal advisory, compliance as well as working with top universities participating in the new scheme. We make sure you are maximally prepared for this new era.

No, scholarships will remain. But with new NCAA rules, starting July 1, 2025, schools will be allowed to pay their student-athletes directly on top of that. These fees are separate from scholarships or fees for “cost of attendance. This move recognizes that athletes contribute more than just their attendance in the classroom or on the field.

Athletes who played between 2016 and 2024, but were not entitled to NIL income at the time, will still receive compensation. A total of $2.8 billion will be distributed to former student-athletes over a 10-year period. This is part of the NCAA House v. Settlement.

Football and basketball are the biggest revenue generators of college sports. But schools must consider Title IX and gender equity. So distributing the money becomes a complex balancing act.

For smaller sports, this means that teams will be smaller, but each athlete will now be able to receive a full scholarship. The new arrangement could strain funding for smaller sports such as swimming, gymnastics or athletics. Some experts fear impact on Team USA’s future talent pipeline.

Yes, that remains possible. But new rules require that any deal have a “valid business purpose” and be market-based. The College Sports Commission controls payments starting at $600 to prevent unfair influence in recruiting.