Highlights

• College athletic departments can now directly pay student-athletes up to $20.5 million annually through revenue sharing, with Louisiana opting in through its new “Cajuns Edge Fund.”
• Top quarterbacks at Power 4 schools are earning over $2 million annually, with offensive tackles commanding $800,000 to $1.2 million per season
• Non-Power conference schools like Louisiana will distribute significantly less than major programs, with athletes receiving far less than Power conference players
• The settlement creates potential employment status issues for athletes, raising questions about unionization and Title IX
• Big Ten proposes expanding the College Football Playoff to as many as 28 teams, which could dramatically increase revenue distribution and athlete compensation

The historic shift to direct athlete payments marks the end of amateur athletics, with local implications for Ragin’ Cajuns fans and Louisiana’s athletic future

LAFAYETTE, La. (KPEL News) — The era of paying college athletes directly has officially begun, with schools across the nation now able to distribute up to $20.5 million annually to their student-athletes following federal court approval of the House v. NCAA settlement. As the college football season kicks off this weekend, Louisiana fans are witnessing a fundamental transformation in how college athletics operate, with the University of Louisiana taking decisive steps to compete in this new landscape.

What Louisiana Ragin’ Cajuns Families Need to Know

Louisiana Athletics launched the “Cajuns Edge Fund” under the Ragin’ Cajuns Athletic Foundation (RCAF), allowing fans, donors, and local businesses to contribute directly to revenue-sharing while receiving tax-deductible benefits and RCAF Priority Points. This represents a historic shift from the previous system, where payments required separate fundraising through volunteer-operated collectives.

Deputy Athletic Director Trey Frazier confirmed the university’s participation in the revenue-sharing model, stating, “We’re excited about this case. We’re going to opt into the revenue-sharing model”. The program allows local businesses new opportunities for authentic NIL partnerships with Ragin’ Cajuns athletes, streamlining the donor process while expanding scholarship opportunities.

Under the settlement, FBS programs can offer up to 105 scholarships, up from 85, while schools participating in revenue sharing can distribute funds directly to athletes in addition to existing scholarships and third-party NIL earnings. Baseball programs receive 34 scholarships and softball gets 25 under the new structure.

The Financial Reality for Louisiana Athletes

The financial gap between major programs and schools like Louisiana is substantial. While Power Five conferences brought in $3.55 billion in revenue for 2023, most athletic departments have limited outside revenue and must rely on school funds and student fees to support their programs. Non-Power conference schools have much smaller revenues, and their athlete revenue-sharing pool will likely be a fraction of what big schools can and will pay.

At the highest levels, top quarterbacks earn over $2 million annually, with several Power 4 schools paying $1.5 million for transfer quarterbacks this offseason. The market has become so competitive that the going rate for good quarterback play quickly surpassed $1 million by the end of November as Power 4 programs negotiated deals to ensure their starters would return.

Position-specific markets have emerged, with offensive tackles commanding $800,000 to $900,000 and potentially reaching $1.2 million or more for left tackles, while interior offensive linemen range from $600,000 to $700,000 for competitive recruitments.

What’s Driving These Historic Changes

The transformation stems from the House v. NCAA settlement, which ends three separate federal antitrust lawsuits claiming the NCAA illegally limited the earning power of college athletes. The Supreme Court’s 2021 decision in NCAA v. Alston rejected the NCAA’s “amateurism” argument, with Justice Brett Kavanaugh noting the “highly profitable” and “professional” nature of certain college sports.

The settlement establishes a $2.78 billion payment in back pay to former college athletes and creates a 10-year revenue-sharing plan where schools can share up to 22% of revenue from media rights, ticket sales, and sponsorships with athletes. The College Sports Commission now oversees regulation and enforcement of player compensation issues, led by CEO Bryan Seeley, a former MLB deputy counsel for compliance and investigations.

Louisiana’s Strategic Position and Local Opportunities

Louisiana’s athletic department has embraced multiple NIL initiatives, including partnerships with more than 30 student-athletes from various sports in an anti-vaping campaign with the Louisiana Attorney General’s Office. The university has established a comprehensive NIL infrastructure through partnerships with INFLCR, Athletic Solutions, and Campus Ink, creating multiple revenue streams for local student-athletes.

The Ragin’ Cajuns Exchange provides a customized portal connecting student-athletes with businesses for NIL opportunities, featuring payment processing tools and tax reporting capabilities. All NIL deals of $600 or more must now be reported through the new NIL Go platform, with Deloitte managing the clearinghouse and reportedly determining that 70% of past payments from NIL collectives would have been denied, while over 90% of payments from public companies would have been approved.

Major Challenges on the Horizon

The new system faces significant implementation challenges. College athletes may be considered “employees” of the university, raising issues of unionization and collective bargaining, while creating the need for renewable annual contracts governing relationships between each athlete and their school.

Employment status classification could impact Title IX compliance, potentially allowing colleges to justify paying athletes in revenue-generating sports more than those in non-revenue sports. With approximately 190,000 athletes competing at the Division 1 level, creating contracts for even a quarter of eligible athletes represents an incredibly labor-intensive challenge.

The settlement’s financial impact threatens non-revenue-generating sports, with many programs facing cuts as colleges offset increased costs for major sports. Olympic-level sports like gymnastics, swimming, wrestling, and track and field could become casualties of the push for equity in high-revenue sports.

The College Football Playoff Factor

Revenue distribution could see dramatic changes with proposed playoff expansion. Big Ten leadership is discussing 24- and 28-team playoff models, with seven automatic qualifiers for the Big Ten and SEC, five each for the ACC and Big 12, two for Group of Six conferences, and two at-large spots.

Current playoff participants receive $4 million for making the 12-team field, another $4 million for reaching quarterfinals, $6 million for semifinals, and $6 million for the championship game, plus $3 million in expense coverage for each round. Colorado’s Deion Sanders proposed paying players additional bonuses for reaching the playoffs, with support from former Alabama coach Nick Saban.

Timeline and Louisiana Opportunities

Louisiana Athletics implemented its budget-neutral revenue share model for the current fiscal year, with the Cajuns Edge Fund counting contributions toward RCAF membership and corresponding benefits. Schools must designate by July 6 any current student-athletes remaining above new roster limits, with fall sports complying with new roster caps by the start of the 2025-26 academic year.

The revenue sharing arrival coincides with Louisiana hiring new men’s basketball coach Quannas White, with Frazier expecting increased attendance and support for the program. The deputy athletic director expressed optimism about fan engagement, noting widespread interest from potential season ticket holders.

For Louisiana businesses, the new structure provides clearer pathways for authentic athlete partnerships. The NCAA now permits direct revenue sharing while allowing athletes to continue benefiting from third-party NIL deals, regulated through the NIL Go platform.

What Happens Next for Louisiana Athletics

The college sports landscape will continue evolving rapidly. Athletic directors face potentially career-defining decisions about finding money and allocating it, with the value of teams now including literal dollar signs and potential cutting of Olympic sports to fund revenue-generating programs.

The peace NCAA and conference leaders hope to purchase with billions in settlement money appears tentative, with separate cases like Fontenot v. NCAA continuing to challenge restrictions on athlete compensation. Enforcement remains a significant question, as separating legitimate endorsement deals from thinly veiled pay-for-performance arrangements continues to be subjective.

Revenue sharing caps could increase to around $30 million annually per school over the next ten years, fundamentally altering the competitive balance between programs with substantial revenues and those relying on institutional support.

For Ragin’ Cajuns fans, the new era presents both opportunities and challenges. While Louisiana may not compete financially with Power Four programs, the university’s commitment to revenue sharing and comprehensive NIL infrastructure positions local athletes to benefit from this historic transformation in college athletics.

Are you ready for the Ragin’ Cajuns football season? Take a look at the brand new Our Lady of Lourdes Stadium.