NCAA Agrees to $2.8 Billion Revenue Share with Athletes in Historic Settlement

The way sports look and operate at the collegiate level may be forever changed after a landmark settlement of $2.8 billion was agreed to by the NCAA.

Kade Kistner | May 24, 2024

Apr 20, 2024; Columbus, OH, USA; Members of the Stanford Cardinals gymnastics team react after being presented with the trophy after clinching their fifth straight NCAA Men’s Gymnastics National Championship in All Around team competition at Covelli Center. Mandatory Credit: Matt Lunsford-USA TODAY Sports / Matt Lunsford-USA TODAY Sports

The way collegiate sports look, feel and operate has very likely changed overnight after the NCAA agreed to a $2.8 billion settlement that will pay past and present athletes from a revenue share model.

For past players this settlement will attempt to make whole athletes who missed out on NIL money from 2016 and onwards, which will be paid out over a 10-year period.

Perhaps the most important part of this settlement is that each conference will be able to share its television revenue money with its athletes directly. This could come into effect as soon as fall of 2025 and include up to $21 million per power conference school. Those schools could then distribute that money as they see fit.

The NCAA will cover 41-percent of the costs of the settlement while the power conferences will pitch in 24-percent of the costs. Meanwhile, the Group of 5 conferences will cover 10-percent while the second division of Division I football and non-football D-1 schools will pick up the rest of the tab.

On the surface it looks like an equitable move. However, it will change the way collegiate athletics operates all the way down to recruitment.

One of the largest concerns is how these schools will allocate money to respective sports. Many are worried that the "smaller" sports may be on the outside looking in at many schools when it comes to funding. This could lead to program cuts while the focus remains heavily on the revenue drivers such as football and baseball.

It will also give the wealthiest schools an even greater advantage than they already have when it comes to recruiting the top talent, which will only widen the divide between the top programs and the smaller schools hoping to compete in the landscape.

The long-term effects of this historic settlement remain to be seen but the way athletes get recruited and how they get paid has forever changed.

Published May 24, 2024

KADE KISTNER

Kade Kistner—a driving force in sports journalism. Holding the helm as publisher for Sports Illustrated's acclaimed feature, Rodeo Daily, Kade is a seasoned alumnus of Tulane University. His academic journey culminated in a 2017 graduation, marked by a degree in Latin American Studies and a minor in Spanish. Following his academic pursuits, Kade embarked on a distinctive path. He answered the call of duty, joining the ranks of the United States Navy. Guided by his aspirations, he honed his skills at Naval Flight School in Pensacola, Florida, ultimately achieving the esteemed position of Naval Aviator. His base of operations was stationed in Jacksonville, Florida—a testament to his dedication and service. Amidst his academic achievements and military commitment, Kade found himself drawn to the world of sports coverage. His byline graced the pages of prestigious platforms such as USA Today, SB Nation, and the revered Sports Illustrated. Within these domains, he tackled the intricate worlds of MLB and NFL, unfurling their stories with a discerning eye. From capturing the essence of the New Orleans Saints to unraveling the narratives of the Texas Rangers, Kade's journalistic prowess shone through. His writing translated the raw data of the sports world into compelling narratives that resonated with readers far and wide. With the turning of seasons, Kade embraced new horizons. He introduced Inside the Phillies, Inside the Astros, and Inside the Cubs—an endeavor that unveiled the inner workings of these iconic teams. Kade's knack for storytelling transformed team dynamics and player stories into engaging content for avid fans. Engage with Kade on Twitter, where his handle, @KadeKistner, serves as an open invitation to join the conversation. For inquiries or correspondence, he can be reached at kwkistner@gmail.com. Kade Kistner's journey through the multifaceted world of sports and journalism continues to unfold, leaving an indelible mark along the way.