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Abstract

The House v. NCAA settlement marks a historic shift in college athletics, fundamentally altering the financial relationship between student-athletes and universities. Approved in June 2025, the $2.8 billion settlement resolves antitrust claims against the NCAA, allowing schools to directly compensate athletes through revenue-sharing agreements. This decision follows years of legal battles over student-athlete compensation, particularly regarding restrictions on name, image, and likeness (“NIL”) earnings. The settlement introduces new financial models, enabling Division I programs to allocate up to 22% of athletic revenue, roughly $20.5 million annually, for athlete compensation. While this benefits high-revenue sports like football and basketball, it also raises concerns about budget constraints, scholarship distribution, and competitive balance across collegiate athletics. Additionally, the agreement establishes roster limits and modifies scholarship structures, potentially reshaping recruitment strategies and team compositions. Despite its groundbreaking nature, the settlement leaves many questions unanswered, including long-term implications for smaller programs and the evolving role of NIL deals. As universities adapt to this new era, the settlement is expected to reshape the collegiate sports landscape, influencing athlete compensation, institutional policies, and the broader economics of college athletics. This Article provides insight into how the settlement will financially impact intercollegiate athletics and demonstrates the need to establish guardrails to ensure their long-term financial viability.

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