A federal judge approved the historic House v. NCAA settlement on June 6, 2025, ending decades of amateurism rules that barred athletes from receiving compensation beyond scholarships. The deal mandates $2.8 billion in back payments to athletes dating back to 2016 and authorizes Division I universities to distribute up to $20.5 million annually to their athletes beginning with the 2025–26 season.
The settlement resolves major antitrust claims that the NCAA and five power conferences illegally suppressed athlete earnings. Judge Claudia Wilken’s ruling paves the way for schools to begin institutional revenue-sharing July 1, 2025—marking a major shift toward a professional financial model in collegiate sports.
Under the new structure, universities gain authority to compensate student-athletes directly, in addition to existing Name, Image, and Likeness (NIL) income. The initial $20.5 million cap per institution is set to grow over time, and funds will cover all sports—not just revenue-generating ones—subject to Title IX equity considerations.
A new College Sports Commission is being formed to monitor implementation and enforce rules. Additionally, Nih Go, a Deloitte-managed platform, will vet NIL transactions over $600 for market-value compliance. Universities across the country, including powerhouse programs like Nebraska, Texas, Texas A&M, and Houston Christian, are preparing to adapt to the new revenue-sharing era .
This ruling signals a major ideological pivot. Long-held amateur principles—rooted in traditional campus athletics—yield to a professionalized model that recognizes the economic value student-athletes generate.
