June 6 marked a transformative shift in college athletics. Judge Claudia Wilken approved the deal between the NCAA and lawyers representing all Division I athletes, which ended three federal antitrust lawsuits – House v. NCAA; Hubbard v. NCAA; and Carter v. NCAA. Read more: WVU Adapts to NCAA Settlement: Revenue Sharing, Roster Caps, and NIL Strategy.
The lawsuits claimed the NCAA was illegally limiting the earning power of college athletes. There were five years of litigation and almost one year of discussions since power conferences and the NCAA initially voted to settle the suit in 2024. The 10-year, $2.78 billion settlement will compensate past players for missed name, image, and likeness (NIL) opportunities and athletic performance and allow colleges to pay players starting in July. WVU will certainly be affected by this change being a Big 12 school, but it may provide them a competitive edge in some aspects.
The Settlement
The House v. NCAA settlement transforms college athletics, ushering in a new financial era. It allows Division I schools to directly compensate athletes, with a $20.5 million annual revenue-sharing allocation per school (the “Pool”).
Dr. Daniel Rascher estimates that the annual revenue-sharing allocation will grow to $32.9 million per school in 2034-35. The settlement provides $2.78 billion in back-pay damages over 10 years to athletes who competed since June 15, 2016.
The $1.97 billion NIL Settlement Fund allocates $71.5 million for video game NIL injuries, $1.815 billion for broadcast NIL injuries (both pro rata based on sport, conference, and years played), and $89.5 million for third-party NIL injuries (via Dr. Daniel Rascher’s methodology).
Related: West Virginia Loses Two More Players to the Transfer Portal
The $600 million Additional Compensation Claims Settlement Fund distributes back-pay damages with 75% to Power Five football, 15% to men’s basketball, 5% to women’s basketball, and 5% to other sports, with expanded shares for high-revenue athletes at select non-Power Five schools.
Future Revenue Sharing
Schools have flexibility in future revenue sharing, but many are likely to prioritize football and men’s basketball, potentially allocating over 85% to football based on gross revenue.
Title IX obligations require equitable adjustments for women’s sports to avoid legal challenges. Roster limits replace scholarship caps, reducing spots for non-revenue sports and walk-ons. Football rosters are capped at 105 players (down from ~120), men’s basketball at 15 (from 17), women’s basketball at 13, and baseball at 34 (from 41). Current athletes are grandfathered to retain spots, and schools can offer full or partial scholarships to all rostered athletes, eliminating prior sport-specific limits. Athletes also gain enhanced benefits, including mental health support, nutrition resources, and extended medical coverage.
The College Sports Commission (CSC), to be formed by Power Five conferences, will oversee compliance, replacing NCAA enforcement. Deloitte’s “NIL Go” portal will review NIL deals over $600 to ensure fair market value and prevent improper inducements. Here is the link to the full opinion for additional information.
Impact on WVU
The settlement presents opportunities and challenges for WVU, a Power Five member in the Big 12. WVU Director of Athletics, Wren Baker, released a statement regarding the settlement.
He stated that “WVU has been working and planning for this day for a long time to best position our department for future long-term success. While we will have further updates soon, I want to let Mountaineer Nation know that our tradition and place on the national stage is at the forefront of our decision-making process.”
Baker indicated WVU plans to utilize the full $20.5 million revenue-sharing allocation, prioritizing football and men’s basketball while ensuring Title IX compliance for women’s sports like basketball, gymnastics, and soccer.
Roster caps will challenge football coach Rich Rodriguez in future recruiting. The 105-player limit may reduce walk-on opportunities, though current athletes are protected. Non-revenue sports like wrestling and rifle face similar constraints, requiring strategic roster management. WVU must report NIL deals through the CSC’s “NIL Go” portal. This will enhance compliance and potentially deter improper offers from wealthier programs. WVU’s growing NIL budget, supported by collectives like the Country Roads Trust, aims to strengthen its competitiveness within the Big 12, though it may trail top-tier programs.
As West Virginia’s only Power Five program, with no professional sports teams in the state, WVU can leverage unique NIL opportunities with local businesses, strengthening its market position. Former Mountaineers from 2016 onward are eligible for back-pay damages, with football and basketball players receiving the largest shares (~$135,000 and ~$23,000, respectively). Although the January 31, 2025, claims deadline has passed, WVU is facilitating contact information for eligible athletes. Balancing budget constraints, Title IX compliance and recruiting competitiveness will be critical for WVU’s success in this evolving landscape.
