As college sports go pro, NCAA athletes need the protection of collective bargaining

"The current college football season enters its third weekend with something that would have been unthinkable just a few years ago: universities cutting actual paychecks to star players. Thanks to the $2.8 billion House v. NCAA settlement approved in June, schools can now share up to $20.5 million of their revenue directly with players across all college sports this year. That figure will climb by at least 4% annually over the decade-long agreement."

"It's a far cry from the "they're not employees" rhetoric we've heard from universities in recent decades and represents a fundamental reordering not just of college football but of college athletics in general. Until 2021, college athletes couldn't profit from their talents at all-no endorsements, no appearance fees, nothing. Then name, image, and likeness (NIL) deals provided the first crack in the dam, allowing players to finally monetize their name, image, and likeness through third-party deals."

"Now, direct payments from schools represent an even bigger shift. Under the new revenue-sharing model, roughly 75% of revenue will go to college football players, 15% to men's basketball, 5% to women's basketball, and 5% to all other sports. The booster collectives that dominated NIL since 2021 are being absorbed into athletic departments or fighting for their lives as NIL returns to actual endorsements rather than disguised pay-for-play."

The House v. NCAA $2.8 billion settlement allows schools to share up to $20.5 million of revenue directly with players this year, rising at least 4% annually over a decade. Direct school payments mark a major departure from past claims that athletes were not employees and follow the 2021 emergence of NIL deals that first let players monetize name, image, and likeness through third-party endorsements. Under the revenue-sharing model roughly 75% of funds go to college football, 15% to men's basketball, 5% to women's basketball, and 5% to other sports. Booster collectives are being absorbed into athletic departments as private equity and media-rights money reshape college sports.

Read at Fast Company