By Jyesha Nance
Athletes, are you up to date on the latest changes? An agreement was established on July 26, between the NCAA and plaintiffs to settle a significant class-action lawsuit, leading to the implementation of a new revenue-sharing model and governance structure in major college athletics. College sports will see a series of modifications aimed at enhancing the overall experience.
The agreement encompasses various adjustments, such as roster-size limits beginning in the 2025-26 seasons, unlimited scholarships across all sports, and the establishment of a clearinghouse to oversee name, image, and likeness deals. Schools will now have the flexibility to share scholarships, with all sports being classified as "equivalency sports," enabling the distribution of partial scholarships to players in football and basketball. Football rosters will expand to 105 players, allowing for an additional 20 scholarships beyond the current 85. Baseball teams will offer 34 scholarships, while softball scholarships will increase from 12 to 25.
Former athletes, rejoice! A total of $2.78 billion in back payments will be disbursed to former athletes over the next decade. The NCAA will cover 40% of the $2.78 billion settlement, while the remaining 60% will be funded by reducing revenue distributions to 32 Division I conferences over the next ten years. The Power Five conferences will contribute 24%, the Group of Five 10%, the FCS 14%, and non-football conferences 12%.
The new revenue-sharing structure with future players will be capped at 22% of the average total revenue generated by schools in eight categories reported in the NCAA's Membership Financial Reporting System. This is expected to amount to nearly $22 million annually, with a 4% annual increase and scheduled re-evaluations after the first, fourth, and seventh years of the 10-year agreement.
The extensive agreement also contains more stringent regulations on NIL, although the method of enforcement for these rules remains unclear. NIL agreements exceeding $600 will undergo scrutiny by a clearinghouse to verify their authenticity as fair-market value agreements that are not part of a pay-for-play scheme. Schools will have the option to directly compensate players for their NIL, but any payments made will count towards the 22% revenue cap. Third parties will still have the ability to negotiate separate NIL agreements with players.
The main challenge lies in ensuring Title IX compliance and determining whether future payments should be distributed equally among all players or if a weighted system can be implemented to allocate more funds to revenue-generating sports such as football compared to female sports.
As this agreement grows, stay up to date with all the latest developments by staying connected with MET for regular updates. Additionally, if you're in search of a reliable agency, consider reaching out to MET.
Source:
https://www.cbssports.com/college-football/news/house-v-ncaa-agreement-details-roster-sizes-nil-transparency-as-college-leaders-set-blueprint-for-future/