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Historic Shift: NCAA Settlement Opens Door to Direct Pay for College Athletes

Jordan Wells
June 7, 2025
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In a groundbreaking development for collegiate sports, a federal judge has given final approval to the House v. NCAA settlement. This landmark agreement enables schools to begin paying student-athletes directly for the first time ever, moving beyond third-party Name, Image, and Likeness (NIL) deals.

  • Revenue sharing cap: Athletic departments can distribute up to $20.5 million per year—about 22% of revenue—to their athletes starting in the 2025–26 season.
  • Back compensation: The deal includes $2.78 billion in retroactive payments for athletes who played between 2016 and 2024.
  • New oversight structures: A revenue-sharing mechanism will be enforced by a College Sports Commission, and third-party NIL deals will be monitored via a Deloitte-run clearinghouse to ensure fair value.

This settlement marks a fundamental change in college athletics, officially ending the NCAA’s long-held amateurism model and ushering in a more equitable compensation structure reflective of athletes' contributions