NCAA Athletes Can Now Be Paid by Schools: Everything You Need to Know About the Historic House v. NCAA NIL Settlement

June 2025 marks a groundbreaking shift in college athletics: For the first time ever,

NCAA Division I athletes will be allowed to receive direct payments from their schools,

thanks to the final approval of a historic $2.8 billion antitrust settlement in the House v.

NCAA case. This signals the official end of amateurism as we’ve known it—and the

beginning of a new era where college athletes are finally compensated for the billions

they generate.

Here’s a full breakdown of what’s happening and what it means for athletes, schools,

and the future of college sports.

The Basics of the Settlement

On June 5, 2025, U.S. District Judge Claudia Wilken approved a massive settlement

covering House v. NCAA and two related lawsuits. The terms include:

$2.8 billion in back pay: This fund will compensate athletes who competed in Division I

between 2016 and September 15, 2024.

Revenue sharing starting July 1, 2025: Colleges can now directly pay current athletes.

In the 2025–26 school year, each school can distribute up to $20.5 million, with the cap

increasing by about 4% annually.

Settlement payout duration: The back-pay fund will be distributed over 10 years.

Who Gets Paid, and How?

Former Athletes (2016–2024)

Must opt into the settlement by January 31, 2026.

Payments will be based on a formula favoring athletes from revenue-generating sports

like football and men’s basketball.

Estimates suggest some athletes could receive over $100,000 each.

Current & Future Athletes

Schools may now revenue-share up to 22% of their athletic department’s earnings (from

ticket sales, sponsorships, media rights, etc.).

Payments can be made directly to athletes and will likely vary by sport and school.

New rules will allow—but also regulate—how this money is distributed.

Oversight and Compliance: How It Will Be Controlled

To manage the new system, several mechanisms are being implemented:

A College Sports Commission will oversee revenue-sharing rules, roster limits, and

enforcement.

A centralized clearinghouse, managed by Deloitte, will track and audit NIL deals over

$600 to ensure compliance and fair-market value.

Schools will be subject to roster caps, but current athletes and existing recruits are

grandfathered in.

Title IX Challenge Could Delay Payments

While the court approved the settlement, a new legal battle threatens to delay the

payout process.

Eight female athletes—led by Kacie Breeding and Kate Johnson—have challenged the

settlement, claiming it violates Title IX by disproportionately benefiting men’s sports.

Their argument: the formula for payouts favors football and men’s basketball players

and leaves female athletes behind.

Their legal team argues that the plan could result in women’s sports missing out on

more than $1 billion in potential payments. The first Title IX claim was dismissed, but the

appeal is ongoing. If the appeals court allows the case to proceed, back payments could

be delayed by more than a year.

What About Congress?

Federal lawmakers are watching closely and may step in. Multiple bills are circulating in

Congress, some of which propose:

A national NIL law that would override state laws.

Antitrust exemptions for the NCAA, potentially protecting it from future lawsuits.

Critics argue these efforts would undermine athletes’ rights and reverse the progress

made by the House settlement. For now, the NCAA and major conferences are lobbying

for federal protection.

What This Means for the Future of College Sports

The House v. NCAA settlement officially ends the NCAA's long-standing ban on direct

pay for athletes. It’s not just a policy change—it’s a total cultural shift. In the coming

years, expect:

More professional-style contracts, recruiting incentives, and retention bonuses.

Schools using creative strategies (like concerts or events) to boost revenue and cover

athlete payments.

Ongoing debates about employment status, unionization, and equal pay.

This new era will be shaped by how quickly schools adapt, how Title IX cases evolve,

and whether Congress passes any federal NIL legislation.

Final Thoughts

July 1, 2025 marks a historic turning point. Schools will begin paying athletes directly,

back payments will start (pending legal appeal), and amateurism—once the bedrock of

college sports—is now officially in the rearview mirror.

Whether this new system creates greater equity or introduces new challenges remains

to be seen. But one thing is certain: college athletes are no longer just students—they

are compensated contributors in a billion-dollar industry.