Starting July 1, 2025, NCAA Division I schools can begin directly compensating student-athletes, marking a significant change in the structure of college sports. This development is part of the House v. NCAA antitrust settlement, a $2.8 billion agreement finalized in June.
Until now, NIL earnings have come solely from outside entities like booster-run collectives. The new rules affected Division I schools’ opting into the deal, including all Power 4 programs and Notre Dame, which were automatically included.
College Athletes to Receive Record Payouts With New NIL Policy
A transformative moment in college sports is approaching as Division I programs prepare to begin direct NIL payments to student-athletes starting July 1, 2025. This shift is part of the House v. NCAA settlement, a $2.8 billion agreement finalized June 6, which resolves three antitrust lawsuits targeting the NCAA and its top conferences.
The 10-year framework allows schools to distribute up to 22.5% of revenue to athletes, approximately $20.5 million per institution in the first year. Several key dates are driving this change. On June 11, the NCAA introduced the NIL Go Portal, a centralized platform for disclosing NIL agreements exceeding $600.
By June 30, schools outside the Power 4 not named in the settlement must decide whether to opt into the revenue-sharing model. Full implementation begins July 1, when payments from athletic departments to players officially start.
The surge in NIL spending has already made waves across the country. The University of Missouri reported over $31 million in NIL expenditures over the past year. About two-thirds went to football, while men’s basketball received roughly a quarter. Key athletes such as quarterback Brady Cook and receiver Luther Burden reportedly secured major deals to remain with the Tigers.
Great FOIA reporting here. So rare to get definitive NIL/collective numbers. https://t.co/CqiAFh5jCx
— Stewart Mandel (@slmandel) June 19, 2025
The settlement also eliminates NCAA scholarship caps, allowing schools to manage rosters based on sport-specific limits. Athletes must meet academic and enrollment standards to qualify for NIL income. Oversight is expected to tighten, with larger NIL deals subject to third-party review to ensure compliance and transparency.
Ohio State athletic director Ross Bjork revealed the Buckeyes football program brought in $20 million in NIL revenue last year, a campaign that ended in a national championship. CBS Sports also noted multiple men’s basketball programs are projected to surpass $10 million in NIL investments for the upcoming season.
With student-athletes now able to negotiate NIL deals before enrollment and a new regulatory system in place, the college sports landscape is poised for unprecedented financial and competitive change.
