Here’s the deal: Your school might soon be cutting checks to athletes. And there’s a cap.
One of the biggest headlines from the House v. NCAA settlement is this game-changer: Schools will be allowed to share up to $20.5 million per year with their athletes. That’s not NIL money. That’s real-deal revenue from TV rights, ticket sales, and more.
Let’s break it down, plain and simple:
- It’s the maximum amount of money a school can voluntarily share with its athletes from its own athletic department revenue.
- Think of it as a payroll cap for college athletes, only it’s voluntary (for now).
- The money comes from things like media deals, sponsorships, merch sales — not tuition or state funding.
Who Gets What?
That’s up to the school! The NCAA settlement leaves distribution plans open-ended, so schools can design their own playbooks:
- Equal payments to all athletes?
- Tiered payments based on sport, position, or performance?
- Bonuses for academic performance or community service?
It’s all fair game, as long as the total doesn’t exceed $20.5 million per year.
How Is This Different from NIL?
Great question! Here’s the key:
- NIL is money you earn from third parties (brands, social media, private sponsors)
- Revenue share is money the school gives you directly
So yes, an athlete can now earn money from both sources. That means a star quarterback might make bank on a local dealership ad and get a cut of the school’s TV money.
Why Families Should Care
- More transparency in athlete compensation
- Greater pressure on schools to invest in athlete wellness and financial education
- More informed conversations during recruitment
Recruiting visits might start to feel a bit like job interviews. And that’s not a bad thing.
Final Thoughts
College sports are turning pro in every way but name. The $20.5M cap isn’t just about money — it’s about power, fairness, and redefining what it means to be a student-athlete.
If you’re an athlete or parent navigating this new world, make sure your game plan includes legal, financial, and career advisors. The era of “play for free” is officially over — and the stakes just got real.
