House-NCAA Settlement Reshapes College Sports Landscape

The House v. NCAA settlement, approved by Judge Claudia Wilken, ushers in a new era for college athletics by allowing universities to directly pay athletes, with a $20.5 million annual revenue-sharing cap per school starting July 1, 2025. The agreement replaces scholarship limits with roster caps, such as a 105-player maximum for football, effectively ending the tradition of walk-on athletes. A $2.8 billion backpay fund will be distributed primarily to athletes from revenue-generating sports for the period 2016-2024. Athletic departments are now determining how to allocate these funds, with many prioritizing football and men's basketball, though schools like Ohio State and Texas A&M emphasize support for broad-based sports programs. Schools must report NIL earnings over $600 to a clearinghouse to prevent disguised pay-for-play deals. The settlement is expected to dramatically reshape recruiting, roster management, and the financial structure of college sports.