College Athletes Start Receiving Direct Payments from Schools

Division I colleges began making direct payments to their athletes this summer, marking a new era in college athletics. The move comes after the House v. NCAA settlement, which went into effect on July 1 and rewrites the rules of college sports.

However, not all institutions are participating, with 54 colleges opting out of the agreement for now. These schools cited reasons such as wanting more time to implement payment procedures, concerns over funding a new enforcement organization, or uncertainty about how international athletes would be compensated.

The settlement’s provisions, including caps on team rosters and unlimited scholarships, have also given some institutions pause. The University of Nebraska at Omaha had planned to gradually reduce its roster size but ultimately decided not to opt in due to the unknown fee associated with funding the College Sports Commission.

Athletic directors expressed frustration over the lack of transparency regarding administrative costs, as well as concerns about potential Title IX challenges and lawsuits over revenue distribution. Despite opting out for now, many expect to participate in the future and plan to make adjustments accordingly.

With the settlement set to remain in effect for 10 years, college athletics is undergoing a significant transformation. As institutions navigate these changes, they must balance competing priorities, including funding payments, scholarships, and maintaining competitive rosters. The long-term impact of this shift on college sports remains to be seen.

Source: https://www.chronicle.com/article/these-colleges-wont-be-sharing-revenue-with-athletes-at-least-not-yet