Last week a federal judge granted final approval to the NCAA’s $2.8 billion settlement in the House v. NCAA case, meaning you guessed it….the rules of the NIL are changing once again! This ruling doesn’t just affect Power Five schools—it has implications for athletic departments of all sizes, including mid-major and smaller institutions that often operate with leaner budgets and fewer staff. So what does this new law mean, and how can smaller schools and administrators manage what’s ahead?
Breaking Down the New NIL Law (In Simple Terms)
Here’s a simplified overview of what’s happening:
- 🏛 The NCAA agreed to a $2.8B settlement in a lawsuit (House v. NCAA) brought by former athletes.
- 💸 Athletes will now be able to receive a share of revenue from things like TV deals, media rights, and conference sponsorships—something that wasn’t possible before.
- 🔁 Schools can begin direct NIL revenue-sharing payments to athletes as early as the 2025–26 school year.
- 🛑 The settlement provides some protection for the NCAA and schools from future lawsuits around athlete compensation.
- 📉 It may shift how athletic departments allocate their budgets, potentially reducing spending on other areas to make room for athlete revenue-sharing.
How Could This Affect Smaller Schools?
While this ruling creates new opportunities for athletes, it also creates new pressures—especially for smaller schools that may not have the same resources or infrastructure as larger programs. Here are a few things administrators at mid-major and smaller schools should be aware of:
1. Increased Administrative Responsibility. Athletic departments may need to create or expand internal NIL infrastructure to handle:
- Revenue-sharing logistics (who gets paid, how much, and when)
- Compliance tracking and reporting
- Financial education and support services for athletes
2. Pressure to Stay Competitive. To retain and attract talent, even smaller schools may feel the need to offer robust NIL support, including:
- Education and career guidance
- Marketing help for athletes
- Connections to local businesses or collectives
3. Budget Reevaluation. Smaller schools may have to shift funding from other areas—like recruiting travel, staff hires, or facility upgrades—to account for NIL distributions. This could require:
- Creative fundraising approaches
- New donor campaigns that center around athlete support
- Collaborations with academic or career departments to pool resources
What Can Administrators Do Now?
Being proactive is key. Here are a few strategies to help manage the coming changes:
- 🗓 Start planning for 2025: Forecast how revenue-sharing might impact your athletic budget now, even if exact figures aren’t yet available.
- 🧩 Build a cross-functional team: Include athletics, finance, legal, and academic support to manage NIL compliance and athlete support more holistically.
- 📚 Educate coaches and athletes: Everyone should understand how NIL affects eligibility, recruiting, and expectations.
- 📈 Invest in scalable resources: Whether it’s an NIL education platform or a part-time NIL coordinator, even modest investments can go a long way.
- 🤝 Leverage local networks: Small businesses and alumni may want to support athletes. Build those relationships before competitors do.
While NIL continues to bring uncertainty, it also brings opportunity. Smaller schools can stand out—not by matching the spending of Power Five schools—but by being more nimble, creative, and supportive. In fact, at many mid-major programs, athletes tend to stay longer, play bigger roles, and have deeper ties to their communities. That loyalty and connection are powerful assets. Schools that lean into this—by building strong NIL support systems and prioritizing athlete development—can not only survive this new era but thrive in it.