Plus why St. John’s and the rest of the Big East stand to benefit from this new revenue-sharing framework
For the first 115 years of the NCAA’s existence, college athletes weren’t allowed to earn money from their athletic abilities. The first opportunity arose in the State of California when Governor Gavin Newsom signed a statute into law on September 30, 2019, allowing colleges to refrain from denying student-athletes the opportunity to profit from their name, likeness, or image.
However, it wasn’t until the summer of 2021 that the NCAA changed rules to allow students to profit from their name, image, and likeness — otherwise known as NIL — after the Supreme Court ruled against the governing body.
A combination of school policies and state laws dictates what deals athletes can make. The NCAA has allowed universities to establish guidelines for their athletes in states that do not have laws outlining the parameters for designing NIL deals. Athletes only earned NIL benefits through outside parties, not through universities.
That changed last week on June 6 when Federal Judge Claudia Wilken approved the House v. NCAA settlement, which resolves multiple federal antitrust lawsuits, pays out thousands of former college athletes $2.8 billion in backpay from lost NIL compensation, and establishes a framework for athletic departments to directly pay college athletes for the first time.
Effective July 1, 2025, the agreement establishes a 10-year revenue-sharing model, which will allow schools to distribute up to $20.5 million in name, image, and likeness (NIL) to athletes during the 2025-26 season. This amount is expected to increase over time, potentially reaching up to $32.9 million per school by the 2034–35 academic year.
The men’s basketball roster size increases from 13 to 15 scholarships to be awarded. An equivalency system also allows coaches to award scholarships to more athletes by offering partial awards instead of full ones. For example, rather than 10 players each getting a full basketball scholarship, a team might divide 10 scholarship equivalents among 15 athletes.
Scholarships, which cover tuition, room and board, and other educational expenses, are not included in this cap. Schools can still offer full or partial scholarships to athletes without counting them toward the NIL compensation limit. In fact, the settlement allows schools to allocate up to $2.5 million of their NIL compensation pool toward increasing scholarships and providing additional support to athletes.
NIL payments can still be paid by outside supportive organizations, but if the payment is over $600, it must be justified by submission to a digital clearinghouse managed by Deloitte known as NIL Go in order to establish that third-party deals reflect what the clearinghouse deems is “fair” market value.
St. John’s and the rest of the Big East conference enter this new era of college athletics in an advantageous position over power conferences that prioritize competing in football programs. Most power conference schools are expected to pay out 75% of their revenue-sharing cap to football, with men’s basketball receiving 15%, women’s basketball receiving 5%, and the remaining sports receiving the final 5%.
This will not be a problem for the ten Big East member schools, which either have no football program or an FCS football program that is less costly than their FBS counterparts. Even UConn, which is the only Big East member with an FBS football program, shouldn’t feel pressure to divert much of its cap from its premier basketball programs in order to support football since they aren’t in a power conference and compete independently.