Revenue Sharing Has Arrived: The Breakdown
Understanding the July 2025 House v. NCAA Settlement
College athletics has changed dramatically over the past few years. In July 2021, athletes were first allowed to earn money from their name, image, and likeness (NIL), opening the door to endorsements, partnerships, and personal brand building. Four years later, another major shift arrived.
In July 2025, the House v. NCAA settlement officially went into effect, introducing direct revenue sharing between schools and athletes for the first time. This settlement marks the next chapter in college sports, and it’s important for athletes and families to understand what it means in practical terms.
What is the House v. NCAA settlement?
In June 2025, a federal judge granted final approval to the House v. NCAA settlement. The agreement resolves multiple lawsuits brought by former college athletes and includes two major outcomes:
Approximately $2.8 billion in back payments to athletes who competed dating back to 2016
Permission for schools to begin paying athletes directly, starting with the 2025–26 academic year
The new model officially took effect on July 1, 2025.
Which schools are participating?
Schools in the ACC, Big Ten, Big 12, Pac-12, and SEC are participating, along with other Division I programs that opted in by June 30, 2025. Participation is voluntary for non–power conference schools, so not every Division I program will operate under the same structure.
How does revenue sharing work?
Participating schools are now allowed to share up to 22.5% of a defined revenue base with athletes each year. That revenue base includes items like media rights, ticket sales, and other related income.
For the first year, this cap equals roughly $20–21 million per school. Schools decide how to distribute that money across their athletic programs, and those payments are in addition to scholarships and other allowable benefits.
Oversight and reporting are handled by the College Sports Commission (CSC), which manages compliance and financial reporting for participating schools.
What’s changing with scholarships?
One of the biggest structural changes involves scholarships. For schools that opt into revenue sharing:
NCAA scholarship limits are eliminated
Sport-by-sport roster limits take their place
This means schools can choose to offer partial or full scholarships to every rostered athlete, rather than being constrained by traditional scholarship caps. For many programs, this could significantly expand scholarship availability, including increased opportunities in women’s sports.
What happens to NIL?
NIL remains a major part of college athletics, with additional oversight in place.
Key points athletes should know:
Third-party NIL deals still exist
Any NIL deal over $600 must be reported
Deals must involve real services and reflect fair market value
To manage this process, the CSC created NIL Go, a reporting and review platform built with Deloitte. The CSC also oversees compliance and provides a neutral arbitration process if disputes arise.
What this means for athletes
Athletes can now earn money in two distinct ways:
Direct payments from their school through revenue sharing, if the school participates
Third-party NIL deals with brands, businesses, or organizations
Not every school will offer the same level of revenue sharing, and NIL opportunities will continue to vary by sport, market, and individual brand value. Understanding both sources of income is essential when evaluating offers or planning ahead.
What this means for recruits and families
The House v. NCAA settlement adds a new layer to college decision-making. School offers may now include scholarships, direct revenue-sharing payments, and third-party NIL opportunities, all of which should be considered together rather than in isolation. Not every program will approach this the same way, so understanding how each school structures revenue sharing, roster limits, and NIL oversight will matter when comparing options.
For high school athletes and families, this shift makes clarity and education even more important. Asking informed questions and understanding the full picture of athletic, academic, and financial support can help athletes choose programs that align with both immediate opportunities and long-term goals.