NIL Knowledge Hub
The House settlement and revenue sharing, explained
The House v. NCAA settlement, approved by Judge Claudia Wilken on June 6, 2025, lets participating schools pay their athletes directly, up to an annual cap of 22% of the average Power Five conference revenue: $20.5 million per school in 2025-26 and about $21.58 million in 2026-27. It also replaced scholarship limits with roster limits, pays about $2.78 billion in back damages over 10 years, and created the College Sports Commission and NIL Go to enforce the new rules.
Key facts
- Approved June 6, 2025, by Judge Claudia Wilken of the U.S. District Court for the Northern District of California; revenue sharing began July 1, 2025.
- Defendants: the NCAA and the ACC, Big Ten, Big 12, Pac-12 and SEC.
- Cap: 22% of the average revenue of those conferences' schools from media rights, ticket sales and sponsorships, set each academic year (July 1 to June 30).
- 2025-26 cap: $20.5 million per school. 2026-27 cap: about $21.58 million, with another 4% increase expected for 2027-28.
- Past damages: about $2.78 billion to eligible current and former athletes over the 10-year term, paid through the settlement administrator.
- Other Division I schools may opt in each year by May 1.
On this page
What the House settlement is
House v. NCAA was an antitrust class action brought on behalf of college athletes against the NCAA and the five largest conferences. The settlement resolved House and related cases, and the court approved it on June 6, 2025, after nearly a year of revisions, including changes to how roster limits applied to athletes already on teams.
Its terms run for 10 years. Three things changed for the schools that take part: they may share revenue with athletes directly, scholarship limits became roster limits, and a new enforcement body, the College Sports Commission, polices the rules on revenue sharing, third-party NIL and rosters.
The revenue-sharing cap
Each participating school may provide athletes up to 22% of the average revenue of ACC, Big Ten, Big 12, Pac-12 and SEC schools from media rights, ticket sales and sponsorships. The cap is calculated and published each spring for the next academic year.
Schools decide how to split the money among sports and athletes, and they do not have to spend the full cap. If a school goes over in one year, the overage comes off the next year's cap, on top of any penalty the College Sports Commission imposes.
| Academic year | Cap per school | Status |
|---|---|---|
| 2025-26 | $20.5 million | Final |
| 2026-27 | About $21.58 million | Published by the College Sports Commission |
| 2027-28 | Expected to rise another 4% | Projected; then re-evaluated every three years |
What counts against the cap
The College Sports Commission's guidance draws the line this way:
- Counts: school payments to athletes for use of their NIL (including through a school designee or contractor), and other direct school payments or benefits not already permitted by NCAA rules.
- Does not count: Alston academic awards, athletic scholarships beyond the 2024-25 team limits (with a separate fine in 2026-27 when new scholarships push a school over), third-party NIL payments (even ones the school helped arrange), Student Assistance Fund money, and benefits from third parties.
Scholarships, housing and other benefits generally do not count. Third-party NIL deals do not count, but they are reviewed by NIL Go.
Roster limits replace scholarship limits
Schools that opt in may give a full or partial scholarship to every athlete on a roster, as long as the roster stays within the sport's limit. Athletes cut before the limits took effect could be named "designated student-athletes" by July 6, 2025, and do not count against the limit.
Selected roster limits from the College Sports Commission:
| Sport | Old scholarship limit | Roster limit |
|---|---|---|
| Football | 85 | 105 |
| Men's basketball | 13 | 15 |
| Women's basketball | 15 | 15 |
| Baseball | 11.7 | 34 |
| Softball | 12 | 25 |
| Women's volleyball | 12 | 18 |
| Men's soccer | 9.9 | 28 |
| Women's soccer | 14 | 28 |
| Men's and women's track and field (outdoor) | 12.6 / 18 | 45 |
| Women's rowing | 20 | 68 |
| Wrestling (men's) | 9.9 | 30 |
Third-party NIL after the settlement
Third-party NIL deals are still allowed and have no cap. Since June 7, 2025, every Division I athlete, at an opted-in school or not, must report third-party deals of $600 or more to NIL Go. Deals with associated entities and individuals, including most collectives, must have a valid business purpose and pay within a reasonable range of compensation.
Since July 1, 2025, schools may not promise or guarantee a third-party NIL deal. A school's revenue-sharing agreement may include an offset that lets it reduce its own payment if a third-party deal is delivered, but that cannot reduce what counts against the cap.
Back damages for past athletes
Eligible current and former athletes will share about $2.78 billion in past damages over the settlement's 10-year term. Class counsel distributes the money through the settlement administrator; the College Sports Commission is not involved. Former athletes can check eligibility at the official settlement website, collegeathletecompensation.com.
Opting in
Division I schools outside the five defendant conferences choose each year, by May 1, whether to opt in to revenue sharing and the roster-limit system. A school that opts in must follow all the related NCAA rules, and a school may opt in or out in any year of the 10-year term.
Schools that do not opt in still have athletes who must report third-party deals to NIL Go.
Who enforces the settlement rules
The College Sports Commission, an independent body separate from the NCAA, enforces the bylaws adopted to carry out the settlement: revenue sharing, third-party NIL and roster limits. Its CEO has sole authority to set penalties. For athletes, the penalty is ineligibility; athletes can contest decisions through neutral arbitration. The NCAA's own enforcement staff still handles everything else, such as academic eligibility and sports betting.
Frequently asked questions
What is the House settlement?
It is the June 2025 settlement of House v. NCAA, an antitrust class action against the NCAA and the ACC, Big Ten, Big 12, Pac-12 and SEC. It lets participating schools pay athletes directly, replaces scholarship limits with roster limits and pays about $2.78 billion in past damages.
How much can schools pay athletes under revenue sharing?
Up to $20.5 million per school in 2025-26 and about $21.58 million in 2026-27. The cap is 22% of the average revenue of Power Five conference schools from media rights, ticket sales and sponsorships.
Do all schools have to pay athletes?
No. Schools in the five defendant conferences take part, but no school must spend its full cap. Other Division I schools decide each year whether to opt in.
Does revenue sharing replace NIL deals?
No. Athletes can receive revenue sharing in addition to scholarships and third-party NIL deals. Third-party deals do not count against the school's cap but must be reported to NIL Go at $600 or more.
Who gets the $2.78 billion in back pay?
Eligible athletes who competed during the class periods covered by the settlement. Payments are made over 10 years through the settlement administrator; see collegeathletecompensation.com.
Next steps
Sources
- About the House Settlement — College Sports Commission
- Revenue Sharing — College Sports Commission
- Roster Limits — College Sports Commission
- Rules and Policies — College Sports Commission
- Frequently Asked Questions — College Sports Commission
- Enforcement and Neutral Arbitration — College Sports Commission
- Official settlement website — House v. NCAA settlement administrator
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.