Inside NIL contracts, House Settlement, and Clemson: You have questions, we have answers

College football has entered a strange and volatile new world, where lucrative contracts for the top players in the sport are now the name of the game. With the passing of the NCAA House Settlement, the landscape alters even more.

The House v. NCAA settlement, finalized on June 6, 2025, allows colleges to directly pay student-athletes for the use of their name, image, and likeness (NIL). The settlement, which resolves multiple antitrust lawsuits, also includes $2.8 billion in back payments to athletes who competed between 2016 and 2024. This landmark decision marks a significant shift in the landscape of college sports, moving away from the traditional amateurism model.

The benefits cap for 2025-26 is set for $20.5 million and is expected to rise. A 4% bump is expected every year for the first three years, with a full recalculation after year four.

But how does it all work? How do the contracts work? We had questions, and now we hope to provide you with some of the answers we found.

WHERE DOES THE MONEY COME FROM?

This money doesn’t come from the NCAA or the courts, but must be raised by the schools. At Clemson, which is adding 150 new scholarships, the number actually rises to around $26 million that needs to be raised. Clemson was proactive in this regard and implemented a student activities fee, went to court with the ACC to earn anywhere from $10-15 million more dollars per year as part of the league’s media rights agreement, and added alcohol sales. There are also opportunities for logo placements and other sponsorship ventures throughout the program. IPTAY is still responsible for the scholarships.

HOW DOES THIS ALL AFFECT TITLE IX?

As of right now, Title IX isn’t expected to change how this progresses. Three College of Charleston female athletes have challenged the lawsuit and are appealing the decision, saying that the decision unfairly affects Title IX. This probably won’t be the last time we see a lawsuit, and until that is all worked out in the courts, I don’t see much in the way of change. The expectation is that this could take 8-10 years to be adjudicated in the legal system. However, as we mentioned, Clemson is adding scholarships, and that includes women’s sports. For instance, the women’s lacrosse program will now have a fully funded scholarship roster.

HOW DO THE CONTRACTS WORK WITH CURRENT PLAYERS?

Most schools have front-loaded contracts for the 2025 season, meaning that current players will get their share before July 1. That means the money from July 1-on will roll into retention of the players that will return from this year’s roster. Let’s use a fictional wide receiver – Rod Tidwell – and he has a $500,000 contract. The purpose of frontloading is that you do as many deals as you can through the collective and get them paid out before the beginning of the year. And that way once you get to December, you still have all of your revenue share money available from the limited amount, which is the $20.5 million. A lot of schools have said they are going to pay those deals in front to their football players and men’s and women’s basketball players. The schools have until Dec. 31st to fulfill the deals, but most will be paid out beforehand. Anything after July 1st would count against the $20.5M, which is why most schools have been trying to front-load and pay all that beforehand.

Now what happens if a player quits during the season or during the playoffs or whenever, that money is non recoupable. In other words, Tidwell was shown the money and ran.

HOW IS MONEY HANDLED WITH RECRUITS?

Obviously, schools are offering monetary incentives to the best recruits, but when and how does that happen? A school can work out a deal with a recruit’s representatives, but no money will change hands until that recruit is on campus. It’s my understanding that most freshmen are on monthly payments (or for some there was a signing bonus, and I think a lot of schools are moving in that direction), but those payments would not start until the player is on campus and enrolled in school. In the case of a December signee who enrolls for bowl practice or is on campus for January, they would more than likely get a monthly allotment until the season begins.

Now, let’s take a look at a fictional freshman linebacker named Bobby Boucher out of Louisiana. Boucher enrolls in January and begins receiving his monthly checks, but during spring practice becomes enraged at the quality of hydration on the sidelines and throws a Gatorade bucket at the head coach. Boucher is summarily dismissed from the team, and his monthly checks are stopped. But once again, the money spent over the first three months will not be recovered.

(This is one good thing about the way Dabo Swinney recruits. There are bad actors everywhere, and players will endeavor to game the system, but Clemson mostly recruits the type of players that won’t have these types of issues. It will happen, and we’ve seen it, but it doesn’t happen often.)

IS THERE A REVENUE CAP ON DEALS OUTSIDE OF THE SCHOOL?

There is no cap for commercial revenue. For instance, quarterback Cade Klubnik made a deal with EA Sports to appear on the new College Football 26 football game cover and he went and spent a day as an ambassador and went for the creation day, and EA paid him independently of what Clemson plays. And, Cade can earn whatever those entities think he’s worth, within the framework of the NIL Go approval on deals of $600 and over.

WHO AT CLEMSON IS RESPONSIBLE FOR MANAGING THE ROSTER UNDER THIS SYSTEM?

There are obviously a number of people who will be a part of the process, including head coaches such as Swinney, Athletic Director Graham Neff, and support personnel. With football, it all begins and ends with General Manager Jordan Sorrells.

CLEMSON IS ADDING HOW MANY SCHOLARSHIPS?

Around 150. Neff and the powers that be have made a conscious decision to make Clemson as good as it can be in all sports. That means baseball will now have 34 scholarships instead of the 11.7 scholarships that was the rule in the past. Texas is adding 200 scholarships but is raising ticket prices. South Carolina will add 50 scholarships, while UCLA has announced it won’t be adding any new scholarships and will keep its current roster limits (85 in football and 13 in men’s basketball).

ONE FINAL NOTE

I am trying to gain some clarity on the recoupability and recruit piece of this, but as I understand it, so are a lot of schools. As I learn more or learn different, I will let you know.