A recent federal ruling in the House v. NCAA lawsuit allows college athletes to be compensated for their performance, marking the end of amateur status. Institutions can now participate in revenue-sharing, redistributing significant earnings from athletic events to players, with a notable $2.8 billion settlement for former athletes. This change, beginning July 1, will impact the distribution of funds across men's and women's sports, raising questions about the future equity of athletic financing and effects on nonrevenue sports programs.
The settlement effectively ends the century-old model of student athletes as amateurs, allowing players to earn money through revenue-sharing agreements with their colleges.
Experts view revenue-sharing as the most consequential part of the settlement, allowing institutions to divide substantial revenue among student-athletes.
Institutions may adjust the distribution of revenue from sports, which raises questions about equity and funding for nonrevenue sports.
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