NCAA Approves Rule Changes to Allow Direct Payments to Athletes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The NCAA has passed new rules allowing colleges to directly pay athletes. This change is part of a major lawsuit settlement expected to start July 1. The rules overhaul scholarship limits, set roster caps, and monitor NIL deals.
NCAA Approves Direct Athlete Compensation: Quick Looks
- Historic Shift: NCAA approves nine sweeping rule changes to allow direct payments to college athletes.
- Settlement Driven: Changes are part of a multibillion-dollar lawsuit settlement expected to be finalized this summer.
- Rulebook Overhaul: More than 150 NCAA rules eliminated or altered; key bylaws rewritten.
- Payments Approved: Schools can now pay athletes directly, with an estimated $20.5M payment pool for top-tier programs.
- Scholarship Cap Removed: Traditional scholarship limits eliminated, replaced with new roster caps to be finalized soon.
- NIL Oversight: Third-party NIL deals over $600 must be reported to a centralized clearinghouse.
- Compliance Structure: Conferences will enforce new rules and monitor payment and NIL compliance.
- Tech Integration: Schools can create platforms to track athlete payments and NIL reporting.
- Eligibility Requirement: Athletes must be full-time students progressing toward a degree to receive payments.
- Governance Update Pending: NCAA working group continues to explore governance streamlining amid push for power from major conferences.
NCAA Approves Rule Changes to Allow Direct Payments to Athletes
Deep Look
In a historic move that redefines the structure of college athletics, the NCAA approved a series of rule changes on Monday that will allow colleges to pay athletes directly, marking the most significant transformation in its modern history.
The new rules are tied to a pending multibillion-dollar lawsuit settlement, known as the House settlement, which still requires final judicial approval. If signed off by a federal judge, the sweeping changes are expected to go into effect July 1, 2025.
While long expected, the changes represent a monumental break from tradition for the NCAA, whose rulebook for decades has barred direct compensation between universities and their student-athletes.
Key Rule Changes
The nine approved proposals will:
- Permit direct payment to athletes by their schools, ending decades of prohibition.
- Eliminate scholarship limits, replacing them with to-be-finalized roster size caps — a hot-button issue during the judge’s April 7 hearing.
- Require annual financial reporting from schools participating in athlete compensation, with an estimated $20.5 million annual pool for top programs.
- Create a centralized clearinghouse to oversee third-party Name, Image, and Likeness (NIL) deals valued at $600 or more.
- Enable technology systems to track both institutional payments and outside NIL agreements.
- Establish a new enforcement body, formed by the conferences named in the lawsuit, to ensure rule compliance across all fronts.
- Mandate full-time academic enrollment and progress toward a degree for athletes receiving direct benefits.
What Happens Next
While Monday’s vote was a significant milestone, the NCAA’s new rules aren’t official until the federal court gives final approval of the settlement. The NCAA’s board was briefed on potential tweaks following concerns raised during the most recent court hearing.
The proposed structure will dramatically alter the NCAA’s compliance landscape, shifting from a model built around amateurism to one that acknowledges athletes as compensated participants in a multibillion-dollar industry.
Future of NCAA Governance
The board also received updates from a working group focused on streamlining governance — a reflection of growing tension as Power Five conferences push for more control over decision-making.
This restructuring effort may eventually grant larger conferences more autonomy in policy-setting, further transforming the NCAA’s role in managing collegiate sports.
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