NCAA approves rules for direct athlete payments pending court approval

The NCAA Division I Board of Directors has approved a series of rule changes that, pending federal court approval of the House settlement, will allow schools to directly pay college athletes for the first time. This move marks a significant shift from decades of NCAA precedent, as it eliminates more than 150 existing rules, including those that previously barred direct compensation and set scholarship limits. Instead, schools can now allocate up to $20.5 million annually for athlete payments, with roster limits replacing scholarship caps to ensure fairness and expand opportunities, particularly in women's sports. The rule changes also introduce a new NIL clearinghouse for third-party deals over $600, and establish annual reporting and compliance mechanisms overseen by a new enforcement body. Not all schools are required to participate; some, such as the Ivy League, may opt out and maintain current practices. The reforms are contingent on final approval of the settlement by Judge Claudia Wilken, who has raised questions about roster transitions and protections for current athletes but is expected to approve the agreement by this summer.