The House v. NCAA settlement introduces a revenue sharing model that allows participating institutions across the country to directly pay student-athletes beginning July 1, 2025. Schools can distribute each year up to 22% of the average revenue among schools in the ACC, Big Ten, Big 12, Pac-12 and SEC from media rights, ticket sales and sponsorships – known as the revenue sharing cap.
The cap for the 2025-26 academic year is $20.5 million per school. With a few potential exceptions, the cap will then increase 4% the following two years and will be re-evaluated every three years over the duration of the 10-year settlement period.
Student-athletes can receive this direct compensation in addition to their athletic scholarships, third-party NIL earnings and other previously permitted educational benefits.
The College Sports Commission and LBi Software, a leading sports management software provider, have developed a comprehensive cap management system known as the College Athlete Payment System (CAPS). Participating institutions are required to use CAPS to report their revenue sharing payments to student-athletes.
The platform will enable schools to:
- Allocate cap funds to student-athletes
- Monitor payments and track progress against the cap
- Manage compliance with revenue sharing rules
- Track roster allocations
Institutional Benefits and the Revenue Sharing Cap
| Permissible Types of Benefits / Payments / Expenses | Will Count Against Cap | Will Not Count Against Cap |
|---|---|---|
| Total value of institutional payments to student-athletes for use of NIL (including from institutional designee or contractor) | X | |
| Other direct institutional payments of additional benefits to student-athletes and/or student-athletes' families not currently permitted or exempted by NCAA rules | X | |
| Academic or graduation awards or incentives (i.e., Alston) | X (up to $2.5MM) | |
| Athletically related financial aid in excess of the 2024-25 AY team limit | X (up to $2.5MM) | |
| Third-party NIL payments, including those arranged or facilitated by institution | X | |
| Funds distributed to student-athletes from Student Assistant Fund (SAF) | X | |
| Benefits from third parties (i.e., individuals or entities other than Division I institution) | X |
More information about the official revenue sharing rules and policies will be made available pending discussions with House class counsel.
LBi and the College Sports Commission will provide participating institutions with many opportunities for education on the CAPS platform and the revenue sharing rules to ensure that administrators fully understand the new model and are prepared to comply with the new rules.
CAPS Website