College athletics enters a new era July 1 as the House v. NCAA settlement takes effect, formally allowing schools to share revenue with athletes. For the first time, schools can directly pay players for performance — a historic shift in the landscape of college sports.
The settlement represents one of the most significant changes in college athletics history, establishing a framework for formal pay-for-play. In preparation, the NCAA rescinded several rules prohibiting direct compensation, setting the stage for this new model. Many contracts began July 1.
So how will players be paid, and what effect will this have on the structure of college football moving forward?
How will players be paid?
Starting on Tuesday, colleges can opt into revenue sharing with athletes. Athletic departments will be allowed to use their own funds to pay players, with a cap expected to hover around $20 million annually per school. That figure is intended to cover all athlete compensation across varsity sports — not just those that generate revenue.
The number represents approximately 22% of average athletic department revenue across power conference athletic departments. The settlement estimates that the total cap will start at around $20.5 million per school in 2025-26 and could rise to nearly $33 million per school in the next decade. Between the revenue sharing, scholarships and other athletic benefits, the NCAA believes that compensation to athletes could push close to 50% of athletic revenue in many athletic departments.
There are few guidelines in place for how the money should be distributed across sports. The expectation is that more than 70% of the funds — around $15 million — will go to football at power-conference schools. However, individual schools have the discretion to allocate funds as they choose. For example, Kentucky or UConn could decide to spend 50% of their budget on men’s basketball….
..
