Big Changes in College Athletics + NIL: Understanding the NCAA Settlement

Big Changes in College Athletics + NIL

This week, college sports just took a HUGE turn—and if you're a student-athlete or parent of one, this is the moment to pay attention.

What Happened?

The NCAA just agreed to a $2.8 billion settlement to end several lawsuits about how athletes were historically blocked from making money from their name, image, and likeness (NIL).

For years, the NCAA made billions while athletes weren't allowed to get a share—even though they were the ones on the field, in the ads, and filling stadiums. That finally caught up with them.

This lawsuit said: You can't profit off players and then stop them from making their own money. And the courts agreed.

 What Does This Mean for Student-Athletes?

There are two major changes:

1. Back Pay is Coming

Athletes who played D1 sports between 2016–2021 may get money from the $2.75B settlement pot.
More details on eligibility and payouts are still coming, but this is a big deal.

2. Revenue Sharing is Coming (Not Just NIL Deals!)

Starting in 2025, schools will be able to pay athletes directly from their own athletic revenue—up to $20.5 million a year per school.

This is different from NIL deals, which rely on outside companies or collectives.
With revenue sharing, athletes could get a regular check from the university—just like coaches and staff.

What Should Athletes & Parents Do Now?

Understand the Shift:
We're moving from "go find your own NIL deal" to "you may actually get paid directly by your school."

Get Organized:
Start treating your athletic career like a business. If you don't already have one, look into forming an LLC to manage your NIL income and future payments.

Know Your Rights:
Don't rely only on what a coach or recruiter tells you—get everything in writing, and have contracts reviewed by someone who understands this new world.

Prepare for Opportunities:
This is the time to start learning about taxes, managing money, and thinking long-term—whether you're D1 or not, changes are coming for everyone.

Bottom Line:
Student-athletes are no longer just “amateurs.” The system is changing, and you need to be ready to move smart.

If you want help breaking it all down, hit reply and reach out.

In the meantime, let's at least get that LLC created so you can start running this like a business, even if an NIL check is nowhere in sight. IT'S COMING and you need to be prepared. 

Click here to start the LLC process.