NCAA settlement, revenue sharing will force Badgers to make 'difficult decisions'

Wisconsin athletic director Chris McIntosh released a statement Tuesday about navigating the new era.

Wisconsin Badgers former running back and Heisman Trophy winner Ron Dayne, right, is honored during a game against the Alabama Crimson Tide at Camp Randall Stadium in Madison, Wis., on Sept. 14, 2024. Also shown are athletic director Chris McIntosh, left, and former head coach and athletic director Barry Alvarez. / Mark Hoffman/USA TODAY Network via Imagn Images

Ahead of a $2.8 billion NCAA settlement and upcoming revenue sharing with student-athletes, Wisconsin athletic director Chris McIntosh released a statement Tuesday discussing how the Badgers will navigate the new era of college athletics.

Among the revelations in the statement were that each school will be able to share $22 million per year in revenue with student-athletes; the settlement will provide NIL back damages for student-athletes who competed from 2016-21; the settlement places limits on the size of team rosters and allots scholarships for each of those roster spots and student-athletes will continue to be able to receive NIL payments post-settlement, but there will be new methods of determining the legitimacy of those payments. So what does all of that mean for the University of Wisconsin?

"Our plan is to maintain the broad-based approach to supporting 23 sports, though the level of support we're able to offer each program will need to change," McIntosh said in the statement. "Above all, our overarching goal will continue to be for student-athletes to thrive within our program and earn a degree from our world-class institution."

What the changes in support levels for certain programs is unclear, though that's likely an indication the smaller revenue sports will take a hit. The Badgers are working to remain "competitive in a post settlement world," and the statement alluded to other avenues of adding revenue to maintain athletic offerings, including more advertising and sponsorships or even more non-athletic events held on campus. Currently, there are no plans to cut any of the 23 Division I sports offered.

"UW Athletics plans to maintain its current offering of 23 sports," McIntosh's statement reads. "We are taking a nuanced, sport-by-sport and unit-by-unit approach to address the financial challenges we are facing."

Athletic departments across the country are grappling with the new reality of NIL, the settlement and upcoming revenue sharing. Part of the issue at hand is that the NCAA will be making settlement payments through a combination of reserves and future settlements, meaning universities will receive fewer NCAA distributions. That's why Wisconsin, as well as most universities in the country, are forced to explore new options to inject fresh revenue into the programs.

How exactly everything will unfold is uncertain, just like the state of college athletics over the past few years.

"The environment in which we have been competing will be quite different in the future," the statement reads. "The changes ahead will force us and athletic departments across the country to make difficult decisions given the financial impact of the settlement. We will adjust to the changing dynamics with our values and goals of academic achievement and a competitive athletic experience as our guide."