Things are changing in college sports; as of June 6, 2025 the National Collegiate Athletic Association officially allowed past and present college athletes to accept and receive compensation. A total sum of 2.8 billion dollars will be paid back to athletes who competed since 2016 as part of the settlement plan which makes them unable to sue for other antitrust violations.
It seems like this wise idea will change college sports world as it is currently known, for the better, of course. College is hard; that’s a fact of life. Think how much more difficult it is when a student has to maintain a 2.3 GPA to keep a scholarship that pays for a thick slice of tuition. Some people say that college is the most enjoyable thing, full of parties and miscellaneous. Student athletes already struggle to balance sports and academics, but adding a job into the mix is a whole different story.
This new law allows athletes a source of income through their sport. Athletes are already at school as if it is their nine to five job, so they should get paid for it. It’s not taking away from anything they already do. The school requires ad campaigns, media days, and social media accounts; now the students can get paid for things that were just tedious beforehand. Schools are also allowed to add bonuses for maintaining a certain GPA or just simply meeting the grade requirements.
Another benefit is that past athletes who were denied compensation beforehand are now getting paid what they were worth. This reimbursement is for the past “damages” the athletes experienced while playing that were never justified or resolved. The NCAA and Power Five Conferences will pay a total of $2,576,000,000 into a settlement fund. The money will be divided over the next ten years by class members according to an allocation plan. It will be divided into three damage classes: the first is football and men’s basketball, the second is women’s basketball, and lastly any other sports. The funds are also distributed with regard to the extremity of the injury suffered.
The plan does have some cracks in it. It seems that Division One schools are likely to focus less on educational spending and more on the athletes’ compensation. Universities may have to reallocate or cut spending. This could mean cutting back on travel expenses, pausing faculty renovations, and possibly cut funding for less popular sports. There is also the possibility of discriminating based on gender. When considering a football player or a volleyball player, the football player could be compensated more than the volleyball player. In the worst case scenario, the volleyball compensation is completely removed for the football player. It could also go the other way depending on the specific university. For example, Oklahoma University is really successful at softball and gymnastics. They could pay their softball players and women gymnasts a large part of their compensation budget and leave their football and other teams the leftover crumbs. It all depends on decisions made at the individual college.
It is never bad to have extra money while in college, especially as an athlete. This new proposal will be beneficial for the financial stability of college athletes. It’s a way for them to earn money without adding a part-time job or two on their plate. It could also be an attraction for athletes choosing where they want to go to college.
Although this is newly implemented, it seems like it is going to make a great headway into college sports.
