Beginning July 1, the structure of NCAA athletics and paying college athletes will take a giant leap. As the House vs. NCAA settlement was officially approved in early June, the revenue sharing model is coming to collegiate sports.
In short, the new format allows athletic departments to pay its athletes directly from the money it generates. $20.5 million is the initial ‘salary cap’ that the NCAA has implemented, meaning that is the maximum amount of money that schools can distribute to its players. This number is expected to increase by a small percentage annually.
Along with these changes, all third party NIL deals surpassing $600 must be approved by a clearinghouse.