Minnesota Faces Deficit Amid NCAA Athlete Pay Shift

The University of Minnesota is addressing an $8.75 million athletics budget deficit by introducing a new $200 annual athletics facilities fee for students, following a legal settlement that enables schools to directly pay student athletes up to $20.5 million annually. This decision has sparked mixed reactions among students amid rising tuition costs. Nationwide, all major conference schools—including those in the Big Ten, SEC, ACC, Pac-12, and Big 12—are participating in the new athlete revenue-sharing model, while some smaller schools are opting out due to financial constraints. The landscape of college sports finance is rapidly changing, with institutions exploring new fundraising strategies and debating the implementation of these reforms. This marks a significant shift from previous NCAA regulations, as student-athletes now receive direct compensation from universities alongside endorsement income. The new model is set to take effect in the 2025-26 academic year.