Major NCAA Settlement Lets Student-Athletes Get Paid by Universities
Historic NCAA Deal Sparks a New Era in University Sport
After decades of controversy and legal action, student-athletes in the U.S. are finally being paid by their universities. This follows a multibillion-dollar legal settlement approved by a federal judge between the NCAA, its top conferences, and the athletes’ legal teams. The case concludes 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 beginning of a brand-new era–not the end of one.
What’s the NCAA Settlement and Its Impact?
Starting 1 July 2025 (the official NCAA settlement payout date), universities can begin paying domestic athletes directly.
Each university can spend up to $20.5 million per year, with that figure increasing annually.
That cap is based on 22% of average university revenues and could rise to over $30 million by the end of the 10-year deal.
The NCAA will pay $2.8 billion in back pay to athletes from 2016 to the present.
These payments are in addition to scholarships and other benefits student-athletes already receive.
Why This Matters
Until recently, U.S. university athletes weren’t allowed to earn money from their sports. That started changing in 2021, when they were permitted to earn from NIL deals (name, image, and likeness).
Boosters — wealthy donors — used NIL deals to pay athletes, especially in American football and basketball. Now, instead of relying on third parties, universities will be paying athletes directly.
Athletes can still earn from NIL, but a new group called the College Sports Commission will aim to ensure NIL isn’t secretly used as additional salary. Even so, universities and boosters are already working together to find ways to continue supporting athletes while adapting to the new rules.
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 university sports into a high-revenue entertainment business, no longer just an education-focused activity.
The new rules reflect this reality and may lead to further legal and cultural changes in the future.
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 maintain fairness.
Important dates include:
- 1 July 2025: Universities can begin making direct payments to domestic athletes.
- 15 June 2025: Deadline for universities to opt into the new revenue-sharing system.
- Start of the 2025–26 academic 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 American teammates. Most are in the U.S. on F-1 student visas, which have strict rules that prohibit them from being paid for playing sports or earning income through NIL deals. If universities attempt to pay them, they could violate federal immigration laws and face serious consequences.
Other visa options, such as the O-1 or P-1, could allow international student-athletes to be paid. This gives universities a chance to support these athletes in new ways while remaining compliant with the law. By assisting athletes in applying for these visas, universities can open up compensation opportunities that weren’t previously available.
Until U.S. immigration policies are updated, many international athletes will likely remain excluded from the new payment system. For this reason, universities are being advised to review their rosters, consult immigration experts, and prepare for increased legal and compliance challenges.
What’s Still Unclear?
Even with this settlement, several major questions remain:
- Will student-athletes eventually be classified as employees?
- Can universities afford these new costs in the long term?
- Will these rules reduce the influence of boosters, or merely shift it?
- 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 affect international student-athletes, given strict visa restrictions and limited earning ability?
- Can universities successfully navigate alternative visa options to offer fair pay to international athletes?
- What happens if athletes, both domestic and international, begin pushing for more rights or legal changes?
University sports leaders are calling on Congress to step in and are hoping for national legislation to help manage and stabilise this rapidly changing system.
What This Means for University Sport
This NCAA settlement marks a turning point in university sport. For the first time, domestic student-athletes can be paid directly by their universities — something that once seemed unimaginable. While this opens exciting new opportunities and is clearly a key step for domestic students, it also raises concerns about the impact on international student-athletes.
Current visa laws and legal barriers — especially for those on F-1 student visas — may make it difficult for many international athletes to receive payment. This poses challenges for universities that want to support all athletes equally. Adjustments for international students may come, but the timing and scope remain uncertain. At Keystone Sports, we’ll be monitoring these developments closely and keeping our community informed.
It’s still unclear how universities will apply these new rules, maintain fair competition, address the challenges faced by international athletes, and whether student-athletes may one day be formally recognised as employees. One thing is certain: this is the beginning of a new era in university sport — one where student-athletes have a stronger voice than ever before.
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Paulina Romo
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