The House v. NCAA settlement will redefine the structure of NCAA Division I sports, introducing landmark changes to teams' operations and athletes' compensation.
Scheduled to take effect in the 2025-26 academic year, the settlement allows colleges to directly pay athletes for their participation in sports, with a $22 million annual pool available for distribution. This shift marks a turning point in college athletics' history, transforming the NCAA's financial dynamics.
One of the most significant changes is the elimination of scholarship caps. Under the new rules, schools can offer scholarships to every athlete on their roster, moving away from the previous system of sport-specific scholarship limits. For football programs, this means expanding the pool of scholarship opportunities while adhering to a newly imposed roster cap of 105 players, down from the current average roster size of 129. Every player on these rosters will now be eligible for scholarship funding, leaving little room for non-scholarship walk-ons who have historically been integral to team dynamics. More information is available here.
The impact of these roster changes extends beyond high-profile sports such as football and basketball. In baseball, for instance, new roster limits will cap teams at 34 players, forcing many programs to make significant cuts. Athletes displaced by these reductions may enter the transfer portal or exit collegiate sports entirely.
Meanwhile, sports like golf, which have traditionally operated on partial scholarships shared among larger rosters, will now face tighter limits coupled with increased scholarship funding. Power Five schools with more significant financial resources are expected to fully fund these scholarships, giving them an edge in recruiting, while smaller programs may struggle to keep up.
These changes also come with financial challenges for universities. Schools opting into the revenue-sharing model must adjust their budgets to accommodate expanded scholarship funding and compliance with new roster limits. Larger institutions with substantial athletics revenue are better positioned to navigate this transition. On the other hand, smaller schools must weigh participation costs against the benefits, potentially leading to tough decisions about which programs to maintain and cut.
The settlement's ripple effects will likely reshape the collegiate sports landscape. While increased scholarships may enhance opportunities for athletes who remain on rosters, the overall pool of Division I athletes is expected to shrink significantly. In sports such as Southeastern Conference baseball, for example, roster reductions could result in hundreds of players entering the transfer portal, creating a domino effect that may elevate competition in lower-tier conferences and limit opportunities for many athletes.
As these changes approach, student-athletes and institutions face uncertainty and adaptation. The 2025-26 academic year marks the beginning of a new era in collegiate sports, characterized by increased financial support for athletes and narrowing opportunities for many. While the settlement aims to create a more equitable system, its long-term effects on competitive balance and the viability of smaller programs remain to be seen.
