Major NCAA Settlement Lets Student-Athletes Get Paid by Schools
Historic NCAA Deal Sparks a New Era in College Sports
After decades of controversy and lawsuits, student-athletes in the U.S. are finally getting paid by their schools. This follows a multibillion-dollar legal settlement approved by a federal judge between the NCAA, its top conferences, and athletes’ legal teams. The case ends years of lawsuits claiming the NCAA unfairly limited student-athletes’ earning potential.
The judge called the NCAA settlement “ground-breaking,” and it’s being described as the start of a brand-new era – not the end of one.
What’s Changing?
- Starting July 1, 2025 (the official NCAA settlement payout date), schools can begin paying domestic athletes directly.
- Each school can spend up to $20.5 million per year, with that number increasing annually.
- That cap is based on 22% of average school revenues and could grow to over $30 million by the end of the 10-year deal.
- The NCAA will pay $2.8 billion in backpay to athletes from 2016 to now.
- These payments are in addition to scholarships and benefits student-athletes already receive.
Why This Matters
Until recently, US college athletes weren’t allowed to make money from their sports. That started changing in 2021, when they could begin earning from NIL deals (name, image, and likeness).
Boosters, wealthy donors, used NIL deals to pay athletes, especially in football and basketball. Now, instead of relying on third parties, schools will be paying athletes directly.
Athletes can still earn from NIL, but a new group called the College Sports Commission will try to make sure NIL isn’t secretly used as extra salary. Even so, schools and boosters are already working together to find ways to keep paying athletes while navigating the new rules and continuing to support them.
Why This Is Happening
- The U.S. Supreme Court ruled in NCAA v. Alston (2021) that the NCAA’s restrictions on athlete compensation violated antitrust law.
- This decision transformed college sports into a high-revenue entertainment business, not just an education-based activity.
- The new rules reflect that reality and may inspire more legal and cultural changes ahead.
What’s Next?
A new group called the College Sports Commission will enforce rules around payments, NIL deals, endorsements, and roster size limits to help keep things fair.
Important dates include:
- July 1, 2025: Schools can begin making direct payments to domestic athletes.
- June 15, 2025: Deadline for schools to opt into the new revenue-sharing system.
- Start of 2025-26 school year: New team roster size limits begin.
What This Means for International Students
International student-athletes may not be able to benefit from the NCAA settlement like their U.S. teammates. Most are in the U.S. on F-1 student visas, which have strict rules that don’t allow them to be paid for playing sports or earning money through NIL deals. If schools try to pay them, they could violate federal immigration laws and face serious consequences.
Other visa options, like O-1 or P-1, could let international student-athletes get paid. This gives schools a chance to support these athletes in new ways while staying within the rules. By helping athletes apply for these visas, schools can open up opportunities for compensation that weren’t available before.
Until U.S. immigration policies are updated, many international athletes will likely remain excluded from the new payment system. Because of this, schools are being advised to check their rosters, talk to immigration experts, and get ready for more legal and compliance issues.
What’s Still Unclear?
Even with this settlement, big questions remain:
- Will student-athletes eventually be classified as employees?
- Can schools handle these new costs in the long term?
- Will these new rules actually reduce booster influence, or just shift it around?
- Will Title IX rules (which ban gender-based inequality) be challenged if most of the money goes to men’s sports?
- How will the settlement impact international student-athletes, given strict visa work restrictions and limited ability to receive compensation?
- Can schools effectively navigate alternative visa options to create fair pay opportunities for international athletes?
- And what happens if athletes, both domestic and international, start pushing for more rights or further legal changes?
College sports leaders are asking Congress to step in and hoping for national laws to help manage and stabilize this fast-changing system.
What This Means for College Sports
This NCAA settlement marks a turning point in college sports. For the first time, domestic student-athletes can be paid directly by their schools — something that was once unthinkable. While this will open interesting new opportunities and is clearly a first step applying to domestic students, it also raises concerns about how international student-athletes will be affected.
Today’s visa rules and legal issues, especially for those on F-1 student visas, may make it hard for many international athletes on those visas to get paid. This creates challenges for schools trying to support all their athletes fairly. Adjustments for international athletes may come, but the timeframe and scope are still unknown. We at Keystone Sports will watch these developments closely and keep our community informed.
It’s still unclear how schools will handle these new rules, keep competition fair, address the unique challenges international athletes face, and whether student-athletes will someday be treated as employees. One thing is certain: this is the start of a new era in college sports — one where student-athletes have a bigger voice.
Share this article:
About the author
Paulina Romo
Paulina Romo, SEO Manager at Keystone Sports, holds a Master’s degree in Business Administration and has a background in equestrian sports, specializing in dressage. Shaped by international experience gained from work and studies in Sweden, South Korea, Germany, and Spain, Paulina brings a diverse blend of marketing skills and perspectives to her role.
More related articles
What are College Esports Scholarships, and How Can You Secure One?
Esports has skyrocketed in popularity and has evolved into a competitive sport. The exciting news? U.S. universities are now offering scholarships for esports players! In this article, you’ll get all the details on how to secure a college esports scholarship.
How to Get a Rugby Scholarship in the US
With the growing popularity of rugby in American universities, more opportunities are becoming available for international students to obtain rugby scholarships. Here’s everything you need to know about scholarships for rugby and how to get one!
Your Guide to Transfer Universities as a Student-Athlete
Transferring universities as a student-athlete can be a complex process, but with the right support, it’s an opportunity to elevate both your academic and athletic career. Keystone Sports simplifies every step of the process to find your perfect fit!