The more fans who play as a specific college football team, the more revenue the school will receive.

PublishedJune 7, 2025 3:08 PM EDT•UpdatedJune 7, 2025 3:09 PM EDT

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In an eye-opening and major development in the ongoing world of NCAA and NIL deals, EA Sports has announced that schools will now be able to get paid based on the number of times gamers choose their team in the upcoming EA Sports College Football 26 video game.

According to Cllct’s Matt Liberman, schools will be compensated in the form of royalties by how often their team is “used in gameplay.” There are 136 colleges and universities that have opted into the partnership with the gaming company, with all now eligible to be part of the revenue royalty program.

“For each CFB product released by EA SPORTS, we (CLC Learfield) will provide a percentage for each institution based on the games played for that institution as a percentage of the total games played across all institutions. This percentage of games played will become the final allocation percentage for each school that will be applied to the total gross royalties for all institutions received,” Cllct media reports based on documents obtained via the Freedom of Information Act. 

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FANS CAN HELP MONETIZE THEIR FAVORITE TEAM

In other words, video gamers and fans will be able to have a direct impact on their school’s recruiting and NIL money. The possibilities are endless in what may turn out to be a brilliant strategic move by EA Sports. The gaming company clearly knows that college football has some of the most rabid fanbases in all sports – from the Vols to Bama to the Bulldogs and the Clemson Tigers. The possibilities for chaos (and a heck of a lot of video game sales) are massive.

“It’s a fascinating incentivizer from EA Sports standpoint,” one high-level gaming source told me while adding that he expects more games to be sold and more teams and schools to be committed to building their EA relationships and marketing efforts. 

THERE ARE SOME CONCERNS THOUGH

As with all things related to NIL these days, there are some important questions that need be answered. The first one involves the compensatory system itself. The public needs to know what, or more importantly, how long a game must be played in order to count towards the school’s NIL program.

My bigger concern, however, is bots. 

Who is to stop bots and automatic gaming systems from just racking up games throughout the night from all over the globe? There has to be some sort of technological oversight, otherwise, the legitimacy of the royalty program would come into question, similar to what happened with Spotify after it was found that some third parties were being hired by labels, or artists, in order to utilize automated streaming systems to boost a particular song or album. The result not only brought in more compensation and royalties, but also attention and more popular playlist adds. Both the NCAA and EA Sports need to make sure this doesn’t happen.

“There are ways to monitor for that sort of thing and also the community itself can help police that with reports and what not,” the gaming source continued. “Although we still don’t know what counts as ‘games played’, my guess would be online games only, which would be easier to track for bots and other nefarious activity.”

Regardless, the EA Sports / NIL / NCAA development is another gamechanger as schools will look to bring in as much additional revenue as they can. On Friday, a judge upheld the House Settlement ruling that essentially allows schools to pay college athletes, which is expected to change the landscape of college sports forever.

Between that ruling and EA Sports’ latest royalty program, everything we once knew about college sports continues to be dismantled. 

WHAT DO YOU THINK OF THE CURRENT COLLEGE FOOTBALL NIL LANDSCAPE? TWEET ME: @TheGunzShow

A federal judge has approved terms of a sprawling $2.8 billion antitrust settlement that will upend the way college sports have been run for more than a century. In short, schools can now directly pay players through licensing deals — a concept that goes against the foundation of amateurism that college sports was built upon.

Some questions and answers about this monumental change for college athletics.

Q: What is the House settlement and why does it matter?

A: Grant House is a former Arizona State swimmer who sued the defendants (the NCAA and the five biggest athletic conferences). His lawsuit and two others were combined and over several years the dispute wound up with the settlement that ends a decades-old prohibition on schools cutting checks directly to athletes.

Now, each school will be able to make payments to athletes for use of their name, image and likeness (NIL). For reference, there are nearly 200,000 athletes and 350 schools in Division I alone and 500,000 athletes and 1,100 schools across the entire NCAA.

Q: How much will the schools pay the athletes and where will the money come from?

A: In Year 1, each school can share up to about $20.5 million with their athletes, a number that represents 22% of their revenue from things such as media rights, ticket sales and sponsorships. Alabama athletic director Greg Byrne famously told Congress “those are resources and revenues that don’t exist.”

Some of the money will come via ever-growing TV rights packages, especially for the College Football Playoff. But some schools are increasing costs to fans through “talent fees,” concession price hikes and “athletic fees” added to tuition costs.

Q: What about scholarships? Wasn’t that like paying the athletes?

A: Scholarships and “cost of attendance” always have been part of the deal for many Division I athletes, and there is certainly value to that, especially if athletes earn their degree. The NCAA says its member schools hand out nearly $4 billion in athletic scholarships every year.

How college sports are preparing for ‘seismic change,’ including revenue sharing and new roster limits

But athletes have long argued that it was hardly enough to compensate them for the millions in revenue they helped produce for the schools, which went to a lot of places, including multimillion-dollar coaches salaries. They took those arguments to court and won.

Q: Haven’t players been getting paid for a while now?

A: Yes, since 2021. Facing losses in court and a growing number of state laws targeting its amateurism policies, the NCAA cleared the way for athletes to receive NIL money from third parties, including so-called donor-backed collectives that support various schools.

Under House, the school can pay that money directly to athletes and the collectives are still in the game.

Q: But will $20.5 million cover all the costs for the athletes?

A: Probably not. But under terms of the settlement, third parties are still allowed to cut deals with the players. Some call it a workaround, but most simply view this as the new reality in college sports as schools fight to land top talent and then keep them on campus.

In a big-money era, University of Illinois shrugs off rules on athletes’ NIL deals

Top quarterbacks are reportedly getting paid around $2 million a year, which would eat up about 10% of a typical school’s NIL budget for all its athletes.

Q: Are there any rules or is it a free-for-all?

A: The defendant conferences (ACC, Big Ten, Big 12, SEC and Pac-12) are creating an enforcement arm that is essentially taking over for the NCAA, which used to police recruiting violations and the like. Among this new entity’s biggest functions is to analyze third-party deals worth $600 or more to make sure they are paying players an appropriate “market value” for the services being provided.

The College Sports Commission promises to be quicker and more efficient than the NCAA. Schools are being asked to sign a contract saying they will abide by the rules of this new structure, even if it means going against laws passed in their individual states.

Q: What about players who played before NIL was allowed?

A: A key component of the settlement is the $2.7 billion in back pay going to athletes who competed between 2016-24 and were either fully or partially shut out from those payments under previous NCAA rules. That money will come from the NCAA and its conferences (but really from the schools, who will receive lower-than-normal payouts from things such as March Madness).

Q: Who will get most of the money?

A: Because football and men’s basketball are the primary revenue drivers at most schools, and that money helps fund all the other sports, it stands to reason that the football and basketball players will get most of the money.

But that is one of the most difficult calculations for the schools to make. There could be Title IX equity concerns as well.

Q: What about all the swimmers, gymnasts and other Olympic sports athletes?

A: The settlement calls for roster limits that will reduce the number of players on all teams while making all of those players — not just a portion — eligible for full scholarships. This figures to have an outsize impact on Olympic-sport athletes, whose scholarships cost as much as that of a football player but whose sports don’t produce revenue.

There are concerns that the pipeline of college talent for Team USA will take a hit.

Q: So, once this is finished, all of college sports’ problems are solved, right?

A: The new enforcement arm seems ripe for litigation. There are also the issues of collective bargaining and whether athletes should flat-out be considered employees, a notion the NCAA and schools are generally not interested in, despite Tennessee athletic director Danny White’s suggestion that collective bargaining is a potential solution to a lot of headaches.

NCAA President Charlie Baker has been pushing Congress for a limited antitrust exemption that would protect college sports from another series of lawsuits, but so far nothing has emerged from Capitol Hill.

Originally Published: June 7, 2025 at 2:17 PM CDT

College athletes are going to get paid directly by their universities for the first time after a federal judge granted final approval of the House v. NCAA settlement on Friday.

The settlement, which resolves three antitrust cases, establishes a new revenue sharing model that acts as a salary cap. The model allows athletic departments to distribute up to $20.5 million in name, image and likeness (NIL) revenue to athletes over the 2025-26 season.

Previously, athletes could earn NIL only through outside parties, including school-affiliated donor collectives that were crucial in roster building and recruiting.

Athletes can still sign NIL deals with third parties without it counting toward a school’s revenue-sharing pool. But there will be constraints and oversight on those deals in an effort to eliminate “pay-for-play.”

The settlement also implements roster limits, which will replace sport-by-sport scholarship limits. Each sport will have its own maximum roster size while allowing for every roster spot to receive a scholarship. Schools will offer scholarship funds as they see fit.

So, how does this all impact Penn State? Let’s take a closer look.

Will Penn State commit the full $20.5 million to revenue sharing?

Yes. While the House v. NCAA settlement allows schools to spread up to $20.5 million to athletes how they see fit, athletic departments aren’t required to do that. Some schools won’t have that kind of money to dole out to their athletes. But Penn State will use every penny.

“Obviously, we’re going to invest the $20.5,” Penn State athletic director Pat Kraft said in February. “… We’re doing that.”

The Nittany Lions are positioned well for this revenue sharing model. Being a part of the Big Ten helps with the significant media rights payouts from FOX, CBS and NBC. Playing at Beaver Stadium with more than 100,000 in attendance for home games helps. Having a massive, passionate alumni base that spends and donates helps.

Penn State was one of five athletic departments in the country to spend $200+ million in the 2022-23 fiscal year, according to Sportico, along with Ohio State, Texas, Michigan and Alabama. The money is there for the Nittany Lions to invest, and Penn State has prepared for this new system.

Last July, Penn State athletics released a video of Kraft addressing a broad plan to share revenue with athletes and issuing a fundraising call to help pay for it all.

“This is not the time to rest on our laurels,” Kraft said in the video. “This is the time to double down on our rich history and proven ability to be successful.”

How will Penn State allocate its revenue sharing funds?

We’re not 100% sure. Generally, power conference programs are expected to use 75% of their revenue sharing funds on football — roughly $15 million or so.

Kraft implied in February that football, men’s and women’s basketball and wrestling will get the bulk of the pot. But he also said every Penn State sport will stand to benefit.

“We’re trying to be able to manage the money so that if we need to move on someone, no matter what the sport is, we have the ability,” Kraft said. “There’s the No. 1 fencer in the world, and we need to go use rev-share to maybe tilt it our way? We’re going to be able to do that.”

What will non-revenue sharing NIL look like now?

With little to no oversight, NIL morphed rather quickly into pay-for-play. Over the last few years, donor-run collectives funneled money into football and men’s basketball programs, turning the transfer portal and high school recruiting into bidding wars and free agency.

As a point of reference, Ohio State’s national championship-winning football roster last year cost $20 million to assemble. The revenue sharing model is looking to eliminate that.

But even as schools are paying players, third-party companies and organizations will still have an opportunity to work with athletes. It’s just going to be more regulated.

A new enforcement structure outside the NCAA called the College Sports Commission will oversee NIL deals between athletes and third parties that don’t fall under revenue-sharing agreements. Deloitte has been contracted to assess fair-market value of those deals.

Kraft sees a fair-market NIL as an advantage for Penn State athletes.

“In this new system, you’re going to have to show fair-market value. This is where the power of Penn State is a huge asset,” Kraft said. “Because the fair-market value for the starting quarterback at Penn State is pretty good. And we have to lean into that with our business partners. That’s the new world of name, image and likeness.”

How will the roster limits affect Penn State football?

Previously, there was an 85-scholarship limit and a 120-player limit, including walk-ons, in college football. After the House v. NCAA settlement, college football’s new roster limit will be 105 players — and everyone can be on scholarship.

More scholarship opportunities will be available. That’s a good thing. But James Franklin has long been frustrated by the prospect of having to cut dozens of players.

“I don’t like it at all,” Franklin said after the Blue-White game. “I’m a D2 football player. I went to college on a $1,500 scholarship and a full Pell Grant. I know what the game of football and college athletics does in terms of helping build well-rounded individuals. I’m fighting and scratching and clawing to hold on to what I believe college athletics is all about.”

Fortunately, that 105-player limit will be loose for the next few years. The NCAA and power conferences agreed to revise settlement language to allow schools to grandfather-in athletes on existing teams, as well as recruits who enrolled on the promise of a roster spot.

Penn State football’s roster is currently listed at 126 members. Thanks to that revised language, Franklin doesn’t have to have too many tough conversations this offseason.

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

Good morning, BBN!

To no one’s surprise, College Athletics has had another monumental moment that will change its future. This time, it may actually provide real structure for the future.

A federal judge has officially approved the $2.8 billion settlement in House v. NCAA, paving the way for a seismic shift in college sports.

Starting in July 2025, Division I schools will be allowed to pay athletes directly, with an annual cap of $20.5 million per school. That number will gradually increase each year.

The money is expected to primarily benefit football and men’s basketball players, although all sports are included in the distribution formula.

The settlement also covers retroactive compensation. Nearly $2.8 billion will be paid out to former college athletes from 2016 to 2024, covering the period before the NIL rules were implemented. These payments will be funded in part by the NCAA and power conferences, including the Southeastern Conference (SEC).

A new oversight body, the College Sports Commission, will be created to monitor compliance. Additionally, a Deloitte-managed NIL clearinghouse called “NIL Go” will review all NIL deals worth over $600 to ensure they reflect fair market value. Non-compliant deals could jeopardize an athlete’s eligibility.

The agreement also introduces roster changes. Sports like baseball will face scholarship and roster reductions beginning in 2026. However, “Designated Student-Athletes” impacted by these cuts will be given the option to transfer without penalty or return to their original teams.

This signals a new era. The Cats will now compete in a landscape where direct athlete compensation is not only allowed but expected.

I believe this marks the official transition from College Athletics to a Professional League, primarily for College Football and College Men’s Basketball.

What do you think about this change?

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Headlines

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More context on the ruling.

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What a GOAT.

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Electric run for the Longhorns.

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It’s been quite the slide since the Master’s for Rory McIlroy.

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Love this move.

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Go out on top!