UPDATE: New Answers About NCAA Settlement House v NCAA

The NCAA recently provided some more clarity on the House settlement, clarifying information surrounding scholarships, roster caps, and more. Please read below for a brief synopsis of those findings, and a link to the full Q&A release from the NCAA.

Scholarship Information

• Flexibility in Scholarships: Division I institutions are not required to provide full athletic scholarships for any specific sport under the proposed settlement. Scholarships will remain equivalency awards, and institutions may choose the portion of the scholarship to provide.

• Increases Without Settlement Opt-in: Institutions can increase scholarships as long as they remain under the pre-settlement limits without being subject to settlement terms.

• Scholarship Impact on Pool:

  • Athletic scholarships exceeding pre-settlement limits will count toward the Pool, capped at $2.5M per year. Beyond this, excess scholarships do not count toward the Pool.

Roster Limit Information

• New Roster Limits: Division I will adopt sport-specific roster limits as reported in the settlement. Compliance starts in the 2025-26 academic year.

• Timeline for Compliance:

  • Fall Sports: Schools must comply by the first date of competition.

  • Winter and Spring Sports: Compliance is required by December 1 or the first competition date (whichever is earlier).

• Implications of Opt-out: Institutions opting out of the settlement are not bound by new roster limits unless they later decide to opt back in.

NIL (Name, Image, and Likeness) Information

• Mandatory Reporting: All Division I student-athletes must disclose third-party NIL contracts or payments valued at $600 or more, regardless of their institution’s settlement status.

• Fair Market Value (FMV) Assessment:

  • From July 1, 2025, all new NIL deals will undergo FMV assessments by third-party arbitrators if challenged.

  • The defendant conferences will manage FMV compliance through a system developed by Deloitte.

• Institutional NIL Deals: Institutions may enter NIL deals with student-athletes, provided the agreements do not exceed NCAA competition eligibility and abide by the Pool cap.

• Student Education: A dedicated student-athlete Q&A and resources will be available via the national student-athlete advisory committees and collegeathletecompensation.com.

Additional Information

• Opt-in/Opt-out Details:

  • Schools must notify their intent to opt in by March 1 each year starting in 2025.

  • Schools can opt in or out during the settlement’s 10-year term, with obligations tied to their current status.

• The Pool:

  • A cap on additional payments/benefits provided to student-athletes, initially estimated at $20.5M for 2025-26.

  • It is recalculated every three years, with interim yearly increases of 4%.

  • Certain benefits (e.g., Alston awards, SAF payments) do not count toward the Pool.

• Technology for Compliance: Reporting and FMV platforms are under development, with LBi handling Pool compliance and Deloitte managing FMV reviews.

• Legislation Updates: Necessary modifications to Division I bylaws (e.g., amateurism, academic eligibility, financial aid) will align with settlement terms by its effective date.

• Support and Questions:

  • Institutions can submit queries to settlementquestions@ncaa.org.

  • Student-athletes can access resources on the settlement's dedicated website.