In a sweeping policy change, Florida’s Board of Governors has approved an amendment permitting public universities, including Florida State, to use up to $22.5 million annually in auxiliary funds to pay student-athletes directly. The decision follows the NCAA v. House settlement, which redefines the financial structure of college athletics by authorizing direct revenue sharing between schools and athletes.
Florida State Can Now Allocate $22.5M to Athletes Under New State Rule Amid NCAA Settlement Changes
Florida’s Board of Governors has approved a significant policy change to allow Florida State University and other state institutions to redirect up to $22.5 million annually in auxiliary funds toward athletics.
The amendment is designed to help schools meet the new financial obligations created by the NCAA v. House settlement, which introduces a formal revenue-sharing model between colleges and student-athletes.
“This money will be used to cover revenue sharing with athletes as part of the NCAA House Settlement,” Warchant.com reported, citing the newly passed amendment.
BREAKING: The Florida Board of Governors just passed an amendment allowing FSU (and other state schools) to direct $22.5 million auxiliary dollars per year to athletics … this money will be used to cover revenue sharing with athletes as part of the NCAA House Settlement.
This…
— Warchant.com (@Warchant) June 18, 2025
The revised policy runs through the end of 2028, offering a temporary three-year window where universities can allocate funds previously off-limits to athletic departments. The Board’s previous regulations barred the use of auxiliary funds.
On3’s Ira Schoffel noted that FSU leaders, including Board of Trustees Chair Peter Collins, advocated for the amendment after the NCAA settlement was finalized.
“Auxiliary funds, which come from areas such as housing, bookstores, and parking fees, previously were forbidden from use in athletics,” Schoffel wrote.
The NCAA settlement requires institutions to distribute up to $20.5 million annually to student-athletes starting this academic year. That cap is expected to rise by at least 4 percent each year over the next decade, significantly increasing long-term financial pressure on athletic departments.
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Acknowledging the “substantial fiscal burden” of these changes, the Board acted to provide a financial release valve for state universities. The change gives Florida schools access to revenue streams already used by peer institutions in other states, many of which had long permitted auxiliary funds or student fees to support athletics.
“This amendment will run through the end of 2028, and it will allow FSU to fully fund the new revenue sharing cap,” Warchant stated.
Florida State could particularly benefit from this decision, as it is projected to gain an additional $15 million to $20 million annually following a legal settlement with the ACC. The combination of new and redirected funding is expected to give FSU more flexibility as the model of amateurism continues to dissolve.
Florida is among several states rethinking funding policies. Louisiana, for instance, recently approved a plan to reroute over $24 million in sports betting revenue into university athletics pending gubernatorial approval.
