OAKLAND, Calif. – June 6, 2025, will be a day to remember for college athletics. After months of anticipation and many pauses in The House v. NCAA lawsuit, U.S. District Judge Claudia Wilken, approved schools to begin paying their players directly, starting July 1.

Wilken finalized a revenue-back pay settlement case that challenged long-standing NCAA rules on player compensation. The decision will not only change how college athletes are paid moving forward, but will also provide $2.8 billion in back pay to those who missed out on earning opportunities between 2016 and September 15, 2024, before NIL rights were fully recognized.

With this new era, a few things are expected to change starting next month. So, what does it mean for schools being able to pay their players directly? Athletes will be paid for things like jersey sales, video game appearances, social media promotions, and more. Yes, athletes have been paid for these things, but through partnerships, sponsors, and NIL deals, not directly through their respective school due to them banning athletes from earning money this way.

Additionally, each school can pay up to $20.5 million per year to its athletes. That figure is capped at 22% of certain sports revenue and is expected to increase annually over the time of the 10-year agreement.

Even though a yearly pay will be given to schools to distribute among their athletes, this does not mean athletes will no longer be able to make money from their name, image, and likeness through third parties. Should athletes choose to make additional earnings from a third-party entity, like a business, brand, booster or collective, they must submit to the new Deloitte-run NIL clearinghouse for legitimacy.

With this revenue-sharing plan, scholarships will also change. Previously, the NCAA set scholarship limits for each sport. Now, those limits are being replaced by roster caps, meaning schools will decide how many players are on a team rather than how many scholarships can be given.

This change could allow schools to offer more scholarships overall, with a predicted estimate of 115,000 additional scholarships being given across Division I programs. However, there’s concern that some teams might shrink their rosters, affecting walk-ons or high school recruits.

To help ease the transition, the settlement allows schools to protect certain athletes already on the roster or those who were promised a spot. These athletes are called “Designated Student-Athletes,” and schools have the option to exempt them from the new limits – though it’s not mandatory.

To ensure this new system is under control, the Power Five conferences announced the creation of the College Sports Commission, a new organization responsible for making sure schools follow the rules. The commission will investigate violations, mange penalties, and handle disputes. Bryan Seeley, has been named the commission’s first CEO. Seeley was previously a Major League Baseball executive and federal prosecutor.

For now, all decisions have been made final, but there is major pushback, and some groups who objected to the ruling could file appeals, but they only have 30 days to do so.

Want to know more about the recent approval? Read this article!

Greg Byrne Announces Tide will Fund Revenue Sharing 

Late on Friday night, a landmark change for collegiate athletics happened.

Judge Claudia Wilken approved the House V. NCAA settlement, which outlines plans for colleges to pay their current and former athletes directly for their name, image and likeness (NIL), as well as to implement new roster limits for each sport.

To enforce the settlement, the College Sports Commission (CSC) was established, which will ensure there’s compliance for revenue sharing, third-party NIL deals and the roster limits. It is a separate entity from the NCAA.

This settlement will bring college football into a new era, including Penn State. Here’s more on how it will affect Nittany Lions football.

New revenue sharing

Starting July 1, colleges will have the ability to pay their players directly from the revenue it receives. Each college opting into the settlement will have an estimated $20 million salary cap to spend for all of its athletic teams, but it’s unclear exactly how much the Nittany Lions will allocate to its football program.

It is clear, though, based on current estimates by NIL-NCAA and trends that the Nittany Lions will be using most of its available money on its football squad.

New roster limit

Within the settlement, football teams of colleges opting in will have a roster limit of 105 players with no limit on scholarships. The requirement will be grandfathered in, meaning any player who would lose a roster spot because of cuts, also known as “designated student-athletes,” don’t apply towards the roster limit for the same remainder of their Division I careers as long as their school allows.

As of now, Penn State has 126 players on its roster. It remains to be seen who could receive a scholarship and who could depart the program once the Nittany Lions have to get below the limit, but regardless, James Franklin has voiced his displeasure with the new rule long before it got approved.

“I don’t want to lose any of them,” Franklin said after the Blue-White Game in April. “I’d like for these guys to stay a part of the program until they graduate. A lot of these young men chose Penn State to get their degree from Penn State and play football.”

In prior years, football teams had a scholarship limit of 85, but they could have multiple walk-on players as well. Now, the entire roster is limited to 105 players.

If Penn State ends up using all 105 scholarships that it can use under the new ruling, stories such as linebacker Dom DeLuca going from being a walk-on to a significant on-field contributor will no longer be an aspect for the team.

The new roster limit will go into effect at the start of this season, but with current walk-ons eligible to stay under the new rules, there might not be many players departing the program.

Payouts to former athletes

In addition to the revenue sharing with current athletes, the settlement also calls for former players to receive payouts for lost NIL during their careers.

As for ex-Nittany Lions, it remains to be seen who exactly will get these payments, but any player who held a scholarship from June 15, 2016, through September 15, 2024, is eligible to receive these payments.

MORE FOOTBALL CONTENT

After a lengthy wait, the House v. NCAA settlement was finally approved Friday night by a federal judge. The settlement changes the landscape of college sports, shifting how current athletes are compensated and delivering back damages to players from 2016 to present day.

According to Alabama athletics director Greg Byrne, the changes will be enormous.

“I tell our coaches and our students, ‘The three most significant events in the history of college athletics are, first, the NCAA’s foundation (1905), second, the adoption of Title IX (1972) and all the opportunities that were created because of it, and, third, the House settlement,’” Byrne said in an interview with ESPN, published on Saturday.

As schools prepare for the changes, here’s what the settlement means for Alabama.

Alabama can directly pay players

The most obvious change stemming from the settlement, is that Alabama and other schools can pay players now. For the length of the 10-year settlement, colleges can share revenue with athletes, with the “cap” rising every year.

For the first year, starting July 1, schools will be able to share around $20.5 million according to most estimates. Different colleges can opt in to the full amount, or distribute a lesser number.

According to a statement from athletics director Greg Byrne, Alabama will be spending the full allowable amount.

“Alabama Athletics has been planning for this day and making decisions that best position our department for long term success,” Byrne said in a statement posted to social media on Saturday. “Approval of the House settlement offers stability going forward, which is something that is much needed.

“We’re extremely proud of the world-class resources our student-athletes receive and will now add to that by offering new scholarships while fully funding revenue sharing.”

More scholarships are coming

The settlement eliminates scholarship limits across sports. Instead, roster limits will be the order of the day.

That means the Crimson Tide can add scholarships for various sports. Ahead of the settlement, Byrne said he expected UA to fund around 40 additional scholarships.

That’s a hefty jump. However, it’s not as many as some of Alabama’s SEC peers, including Texas and Georgia

“Chris Del Conte is one of my best friends, the AD at Texas” Byrne said during a March appearance on the Will Cain Show. “They’re a bit of an outlier in terms of how they’re managing the scholarship number because they have the financial flexibility to do that. I’m Alabama, which people think we’re flush. We don’t have that same flexibility, OK?

“We’ve had some challenging conversations with some of our coaches in saying,’ You’re gonna have this number of scholarships to work with. There will be schools that have more than you do.‘”

Walk-ons are still allowed… for now

According to Alabama’s 2024 NCAA revenues and expenses report, the Crimson Tide football team had 142 participants during the fiscal year, which ran from July 1, 2023 through June 30, 2024. Many of those were walk-ons, something that would be eliminated under the House settlement.

However, the main sticking point in Wilken approving the settlement, was letting the walk-ons continue their college career. So, for now, they can remain on Alabama’s, or any other school’s, roster.

Even with the roster limit going to 105 for football, Alabama can, but isn’t required to, keep any player whose spot was expected to be eliminated to get under the number, provided it submits a list of such players within 30 days. UA can also keep any player whom it recruited for the upcoming 2025-26 school year.

Head football coach Kalen DeBoer had discussed the walk-on uncertainty at SEC spring meetings.

“We have a full team on campus right now, and I believe still a lot of those guys that are walk-ons actually have their name in the portal because they have to be able to adjust,” DeBoer said in May. “We’ve fortunately got some guys that really want to be at Alabama in those walk-on roles, and if the roster size was reduced they, and we, would have to adjust accordingly.”

NIL will change

The introduction of revenue sharing doesn’t mean NIL is going away. However, it will likely change.

Byrne made sure to note that the Crimson Tide’s NIL collective is sticking around.

“Our student-athletes have the distinct benefit of Yea Alabama, which focuses on creating authentic NIL opportunities powered by both the Alabama and student-athlete brands,” Byrne said in his statement Saturday. “Crimson Tide Sports Marketing and Learfield will also continue to cultivate local and national opportunities that greatly benefit our student-athletes.”

NIL will be more regulated under the new system, at least until someone challenges it in court. Players will have to report deals over $600 with any party besides their schools, and the College Sports Commission, a new entity, will evaluate whether they align with what the commission perceives as market values and have legitimate business purposes.

On Friday, Judge Claudia Wilken approved the House v. NCAA settlement, which will allow colleges to directly pay athletes and usher in the era of revenue sharing. Big Ten commissioner Tony Petitti released a statement regarding the monumental settlement.

“We look forward to implementing this historic settlement designed to bring stability, integrity and competitive balance to college athletics while increasing both scholarship and revenue opportunities for student athletes in all sports,” Petitti wrote.

Wilken’s approval finally came almost 59 months after the initial suit was filed. The long waiting period has given Power Four conferences such as the Big Ten to prepare for the paradigm shift.

Beginning July 1, schools will allowed to share $20.5 million with athletes, with football expected to receive 75%, followed by men’s basketball (15%), women’s basketball (5%) and the remainder of sports (5%). The amount shared in revenue will increase annually.

Power Four football programs will have roughly $13 to $16 million to spend on rosters for the 2025 season. Many schools have front-loaded contracts ahead of the settlement’s approval, taking advantage of contracts not being vetted by the newly formed NIL clearinghouse.

“Despite some compromises, the settlement agreement nevertheless will result in extraordinary relief for members of the settlement classes,” Wilken wrote in her 76-page final opinion. “If approved, it would permit levels and types of student-athlete compensation that have never been permitted in the history of college sports, while also very generously compensating Division I student-athletes who suffered past harms.”

To enforce this new era, the NCAA is creating the College Sports Commission. Major League Baseball executive Bryan Seeley will serve as the commission’s CEO, the commission announced late Friday.

“I am honored to serve as the first CEO of the College Sports Commission at this pivotal moment in the history of collegiate athletics,” Seeley said in a statement. “I look forward to implementing a system that prioritizes fairness, integrity, and opportunity, while preserving the values that make college sports unique. I am energized by the work ahead and excited to begin building out our team.”

While the near five-year waiting period from the time the lawsuit was filed to Wilken’s final approval gave institutions time to prepare for the changes ahead, there are still many unknowns. Notably, many have questioned how the NCAA will prevent teams from seeking state legislature that circumvents the new rules.

The College Sports Commission will address issues such as these. Only time will tell how Wilken’s historic ruling will ultimately affect college athletics.

On3’s Pete Nakos and Nick Schultz also contributed to this report.