Michigan State University and other schools can now share revenue from their athletic departments with student athletes. That’s after a historic legal settlement involving the NCAA took effect this week.
To break down what it means for the future of college sports and its athletes, WKAR’s Melorie Begay spoke with "Beyond the Score" host Al Martin.
Interview Highlights
On how big a moment this is in college sports
This is the most sweeping change to the model of college athletics in its 100-plus-year history. What we used to define as amateur college sports, it now looks like professional sports with revenue sharing contracts and formalized payments.
On who will get paid and how much
Schools will have the flexibility to determine their own models. Some may use a tiered system paying more to starters or stars, if you will, while others could go with a more equitable base salary for all scholarship athletes. Olympic and non-revenue sports? Well, they could receive smaller shares, and in some cases, none at all. This system brings up important equity questions especially regarding Title IX and forces school to rethink what fair looks like in the context of college athletics.
On the end of "amateurism" in college sports
With this shift the foundational premise of amateurism that athletes play for the love of the game and the value of education, well, that with this is now, fundamentally changed. We are now entering a world where schools are employers, athletes are compensated talent and the business of college sports is fully out in the open. It's the end of an era, and really the beginning of something that is entirely new.
Interview Transcript
Melorie Begay: Michigan State University and other schools can now share revenue from their athletic departments with student athletes. That’s after a historic legal settlement involving the NCAA took effect this week.
To break down what it means for the future of college sports and its athletes, I'm joined by WKAR's "Beyond the Score" host Al Martin.
Thanks for being here, Al.
Al Martin: Of course, Melorie. Good to see you.
Begay: Good to see you too. So, first question, what exactly changed for college athletes on July 1, and why is this such a pivotal moment?
What we used to define as amateur college sports, it now looks like professional sports with revenue sharing, contracts and formalized payments.
Martin: Great question. July 1, it marks the beginning of this brand new era in college sports. As you mentioned, for the first time ever, schools will be allowed to directly pay their athletes as a part of the NCAA's $2.8 billion settlement in that House v. NCAA case.
Now, the Power Five: the ACC, the Big Ten, the Big 12, Pac-12 and SEC were named defendants in the House case, so their schools automatically opted into the settlement and its stipulations. Other D1 schools had a choice to opt in or out.
But this is the most sweeping change to the model of college athletics in its 100-plus-year history, Melorie. What we used to define as amateur college sports, it now looks like professional sports with revenue sharing, contracts and formalized payments.
Each school can distribute up to $20.5 million per year to its athletes, starting this upcoming year, the 2025-26 academic year. And this move comes after years of pressure from lawsuits, federal and state legislation and growing criticism that college athletes were generating billions in revenue without fair compensation.
Begay: How will this new revenue sharing actually work, and will all athletes be paid the same?
Martin: Not exactly. Now, while schools will have a cap of $20.5 million to share with athletes annually, how that money gets distributed? Well, that will vary widely from campus to campus.
Early projections note that it's expected that over 70% of those funds will go to football players, especially at Power Five schools, followed by men's basketball.
Early projections note that it's expected that over 70% of those funds will go to football players, especially at Power Five schools, followed by men's basketball.
Schools will have the flexibility to determine their own models, Melorie. Some may use a tiered system paying more to starters or stars, if you will, while others could go with a more equitable base salary for all scholarship athletes. Olympic and non-revenue sports? Well, they could receive smaller shares, and in some cases, none at all. This system brings up important equity questions especially regarding Title IX and forces school to rethink what fair looks like in the context of college athletics.
Begay: So, who will regulate all of this, right? It's a lot of money. There's a lot of systems. Who's going to regulate the payments, the Name, Image, Likeness deals, the contracts. Who's going to help sort this out?
Martin: That's a key question. Oversight will shift away from the NCAA and into the hands of a newly formed College Sports Commission, which will be an independent entity that will enforce rules, will oversee those Name, Image and Likeness transactions and hold schools accountable. It'll also help maintain competitive balance and, ideally, ensure that athletes aren't exploited or underpaid. That's the aim of this, Melorie. A centralized NIL database will also be implemented, that's going to be called NIL Go, requiring that all NIL deals over $600 to be submitted for approval now, complete with documentation showing that it's a legitimate business exchange.
Now, this portal is meant to bring transparency, standardization and accountability to a space that has largely operated in the shadow since NIL became a thing back in 2021. Now how effective it will be? Well, that's the big question here, Melorie, and competitive balance is key here. And many feel like we are already too deep into the weeds.
Begay: Why was there such a surge in NIL deals before July 1 — and what does that tell us about where things are headed?
Martin: So that surge that we saw in June, Melorie. Check this, an 824% increase in NIL deals in June compared to the same time last year. Why you ask? Well, because once this revenue sharing model kicks in the old system of unregulated NIL payments via collectives, that becomes less attractive and less legal under the new guidelines.
So boosters and NIL collectives, they tried to squeeze in these last-minute contracts, often front-loading these deals offering lump sums of money to athletes before July 1. And as mentioned, NIL deals will now be required to be submitted for approval over $600 by NIL Go. But long term, expect a sharp decline in those NIL collective’s influence, because direct school payments will take center stage now.
Begay: Does this mark the official end of amateurism in college sports?
We are now entering a world where schools are employers, athletes are compensated talent and the business of college sports is fully out in the open.
Martin: That is a great question. In a word, yes. While the NCAA may not officially say it, this move draws a clear line between the old amateur model and a new era that looks and feels much more like pro sports, Melorie. Athletes will now be paid directly by their schools, may have contract-based agreements and could even see postseason bonuses and formal compensation packages tied to performance and also media exposure. If that doesn't sound like pro sports, I don't know what does.
Now, with this shift the foundational premise of amateurism that athletes play for the love of the game and the value of education, well, that with this is now, fundamentally changed.
We are now entering a world where schools are employers, athletes are compensated talent and the business of college sports is fully out in the open. It's the end of an era, and really the beginning of something that is entirely new.
Begay; Al Martin is WKAR’s "Beyond the Score" host. Thanks for breaking this all down for me, Al.
Martin: Of course, thank you Melorie.
