What to know about the NCAA settlement + how it could impact college sports in Alabama

A groundbreaking decision was officially handed down last week to allow colleges to directly pay their student-athletes, marking the start of a new era in collegiate sports.

The deal was struck between the NCAA and lawyers representing Division I athletes. Schools can start paying out checks directly to athletes beginning on July 1.

“Approving the agreement reached by the NCAA, the defendant conferences and student-athletes in the settlement opens a pathway to begin stabilizing college sports. This new framework that enables schools to provide direct financial benefits to student-athletes and establishes clear and specific rules to regulate third-party NIL agreements marks a huge step forward for college sports.”

Charlie Baker, NCAA President

So what does this mean for current and future student athletes at the 10 Division I schools in Alabama? And what about past student athletes that could not take advantage of the new world run by Name, Image and Likeness (NIL)?

Keep reading for the details.

Salary cap for college athletics

The new format will differentiate from the current world of college athletics fueled by NIL, which allows booster programs, local businesses and corporations to pay student athletes when they signed with a certain school.

This settlement will allow the universities to use their own money to pay the athletes. But just how much could it cost?

According to initial reports, colleges will be allowed to pay roughly $20.5 million per academic year to student athletes across all sports. That means $20.5 million to be shared between football, baseball, basketball, softball, soccer, track, swimming and everything in between.

“Yes, this all means change, and change at this scale is never easy. This is new terrain for everyone… Opportunities to drive transformative change don’t come often to organizations like ours. It’s important we make the most of this one.”

Charlie Baker, NCAA President

The new settlement will also force any NIL deal of more than just $600 to be registered and approved by a new program known as “NIL Go.” The NCAA hopes this will help regulate + control the NIL world which many believe have gotten out of hand.

Plus, some former DI athletes can benefit from the settlement as roughly $2.7 million will be paid out to thousands of former players who could not take advantage of NIL.

Greg Byrne, John Cohen chime in

It’s not yet clear exactly how this will impact many athletic programs especially the smaller programs in Division I but athletic directors from both Alabama and Auburn responded to the big news over the weekend.

Auburn AD John Cohen said Auburn is fully funding the $20.5 million of revenue sharing + 113.8 additional scholarships year-over-year, at a projected cost of $5.49 million.

“The commitment I made to you while standing at the podium from my first day at Auburn, which still holds true today, will be to ensure that Auburn is positioned to compete at a championship level… This settlement will eliminate scholarship caps and enable athletic departments to share revenue directly with student-athletes, while leveling the playing field through the implementation of an annual cap on the funds which may be directly distributed.”

John Cohen, Auburn AD

Alabama’s Greg Byrne, who has been more vocal about concerns over the state of NIL, made a similar statement.

The Crimson Tide will also be fully support the revenue sharing capped at $20.5 million.

“One of the biggest transformational changes in college athletics is upon us, and Alabama Athletics has been planning for this day and making decisions that best position our department for long term success. Approval of the House settlement offers stability going forward, which is something that is much needed… We have a long history of being one of the most successful athletics departments, and we will carry on that tradition as we enter this new world. “

Greg Byrne, Alabama AD

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