What Is NCAA Revenue Sharing?

NCAA revenue sharing is now a reality: for the first time in history, NCAA Division 1 colleges and universities who opt into the House v. NCAA settlement, will directly share athletic department revenue with student-athletes in the form of direct payments. Traditionally, athletes were limited to scholarships, while some universities and conferences collected billions from TV contracts, sponsorships, and ticket sales. 

This change is the result of years of legal pressure and lawsuits, most notably the House v. NCAA case, which challenged the NCAA’s long-standing amateurism rules. Faced with growing criticism and the rise of NIL rights in 2021, the NCAA agreed to a landmark settlement in 2025 that introduced a formal revenue sharing model. 

The policy represents a historic shift in college sports, bringing athlete compensation closer to the professional model while still operating within the college system. It also leaves a number of questions that will likely be debated and decided in coming years.  

Key Differences From NIL

It’s important to understand how revenue sharing differs from outside Name, Image, and Likeness (NIL) opportunities: 

• Revenue sharing is income paid directly by universities out of their athletic department budgets.  

• NIL deals are earnings from third-party companies, such as sponsorships, endorsements, booster collectives or paid social media campaigns.  

• Athletes can benefit from both systems at the same time, combining school-based revenue with personal NIL income.  

In short, NIL gives athletes the freedom to earn like influencers and entrepreneurs, while revenue sharing guarantees a direct financial stake in the revenue their sport generates.

Click here to learn more about NIL opportunities. 

What NCAA Revenue Sharing Means for You in 2025 and Beyond

There was a time when college athletes could only earn scholarships while schools and athletic conferences garnered billions in media deals, sponsorships, scholarships and ticket sales. That changed in 2025, when the NCAA revenue sharing model went into effect as part of a landmark court settlement.  

The move is a groundbreaking shift in college sports. For the first time, some student-athletes will benefit from athletic department revenues, allowing for direct payments from universities.  

Understanding how NCAA revenue-sharing works can help you: 

• Navigate scholarship opportunities and future earnings 

• Understand what questions to ask college coaches 

• Be prepared for the changing landscape of NCAA sports 

Join a live workshop to learn even more about changes coming to the NCAA

Who Qualifies for Revenue Sharing?

Revenue sharing will begin in Division I athletics in 2025-26, with a primary focus on Power Five conferences (SEC, Big Ten, ACC, Big 12, and Pac-12). These schools generate the most media and sponsorship revenue, giving them the financial flexibility to participate.  

However, participation isn’t automatic – each athletic department will decide whether and how to share revenue. Some schools may spread payments across all scholarship athletes, while others may concentrate funds in higher-revenue sports like football and basketball. 

Eligibility will vary by school, sport, and team, which means athletes and recruits should ask programs directly how they plan to handle revenue sharing.  

What Factors Influence Payment Amounts?

Schools can share 22% of average revenue among schools in the Power 5 conferences in the 2025-26 school year, with a cap of $20.5 million per school. The number is expected to increase each year. 

However, the actual amount distributed to each athlete will vary widely: 

• High-revenue sports like football and men’s basketball are expected to see the largest payouts.  

• Olympic and non-revenue sports may still receive benefits, but on a smaller scale which could range from nothing to a few thousand dollars, depending on how athletic departments allocate their resources to different sports.  

• Top athletes who play key roles in nationally televised games may receive more significant shares than role players.  

While estimates differ by program, the expectation is that, for the first time, many student-athletes could receive a more predictable stream of direct income from their schools, in addition to scholarships or third-party NIL deals. 

Bonuses, Incentives, and Scholarship Integration

Revenue sharing isn’t limited to a flat payout. Schools may integrate additional factors into their distribution models, including: 

• Performance-based incentive: Athlete could see larger payouts based on playing time, team, success, or postseason achievement.  

• Academic requirements: To remain eligible for revenue sharing, athletes will likely need to maintain good academic standing, similar to existing scholarship rules. 

• Scholarship integration: Revenue sharing could help bridge the gap for athletes receiving partial aid. 

This structure means that revenue sharing won’t replace scholarships.  

How Will Revenue Sharing Affect College Recruiting?

Revenue sharing is set to change the recruiting landscape in ways that go far beyond traditional scholarship offers. For athletes, the decision about where to play won’t just come down to facilities, coaching staff, or conference prestige — financial incentives will now play a larger role.  

• Bigger financial packages: In addition to scholarships, schools can now highlight projected revenue-sharing payouts as part of their recruiting pitch. 

• Institutional pay vs. collectives: Previously, much of the financial support outside of scholarships came through NIL collectives. Now, direct school payments create a more transparent, stable option for athletes weighing their choices. 

• Competitive imbalance: Wealthier athletic departments with larger media contracts may be able to offer more substantial revenue-sharing packages, widening the gap between Power 5 schools and smaller Division I programs.  

For recruits, this means evaluating the total financial package — scholarships, NIL opportunities, and revenue sharing — when comparing schools.  

Legal and Financial Considerations for Athletes

With revenue sharing comes new responsibilities. For the first time, many college athletes will need to treat part of their earnings like traditional income. 

• Tax obligations: Revenue-sharing payments will be taxable, meaning athletes must report them and may need to set aside money for state and federal taxes. 

• Contracts and paperwork: While schools will handle most of the distribution, athletes may need to sign agreements outlining payment terms and eligibility.  

• Compliance oversight: University compliance officers will play a key role in ensuring athletes meet eligibility standards while receiving payments. This helps avoid conflicts with NCAA rules, scholarship requirements, or other regulations.  

• Role of advisors: While not required, some athletes may choose to work with professional advisors or accountants for financial planning — especially those in high-revenue sports with larger payouts. It’s important to understand how to hire the right advisors and ensure you’re compliant with NCAA regulations around who you can and cannot hire.  

How To Balance Athletics, Academics, and Earnings

Earning direct revenue is exciting, but it also adds new layers of responsibility for student-athletes. Balancing academics, athletics, and financial obligations will be essential to long-term success.  

• Stay focused on priorities: Revenue should supplement, not distract, from athletic performance and academic progress. 

• Mental Health & Stress Management: Balancing new financial responsibilities with academics and athletics can be overwhelming. Universities may offer counseling, sports psychology, or wellness programs to help athletes manage stress and avoid burnout. 

• Time management: Athletes may need to plan their schedules carefully to handle both their sport and any additional financial responsibilities.  

• Financial tools: Budgeting apps, financial literacy workshops, and university-provided resources can help athletes manage their income responsibly.  

• Academic standing: Just like scholarships, revenue-sharing eligibility may depend on maintaining good grades and staying on track academically.  

• Team dynamic: Revenue-sharing payouts may differ by sport or even within the same team. Athletes should be mindful of how money conversations could affect team culture and relationships. 

Revenue sharing creates new opportunities, but athletes must approach it with discipline and organization to ensure it helps their college experience. 

Prepare Now for the Future of College Sports

The start of the NCAA revenue sharing in 2025 marks a new era for college athletics. For the first time, student-athletes will be compensated directly by their schools, creating opportunities that go beyond scholarships and NIL deals.  

This shift will reshape recruiting, with financial packages playing a bigger role in athletes’ decisions. Families and recruits who understand how revenue sharing works, and how it differs from scholarships and NIL, will be better positioned to make informed decisions.  

Questions to Ask Coaches About Revenue Sharing

The key to success will be prep, guidance, and awareness. Athletes who ask the right questions, evaluate the full value of each opportunity, and plan for both the athletic and financial aspects of college will have a clear advantage in this new landscape. Watch the video below for some key questions to ask college coaches after you’ve built a relationship with them:

NCSA Can Help Navigate NCAA Changes

Want to understand how NCAA revenue sharing affects your recruiting journey?  
Connect with an NCSA Recruiting Expert today and get customized guidance on navigating this new chapter in college athletics. 

FAQs About NCAA Revenue Sharing