NCAA passes rules allowing for payments to athletes by member schools

In an expected move, the NCAA Division I Board of Governors on Monday “conditionally approved” nine new rule changes that clear the way for direct compensation to athletes.

The rule changes will take effect with the anticipated federal judge approval of the settlement in the House vs. NCAA case, which is expected be completed by this summer. The new rules upend decades of precedent within collegiate sports, in which “pay for play” had been strictly forbidden.

Among the changes, which will eliminate 150 NCAA rules and alter many others:

• Schools will now be allowed to pay athletes directly out of their athletic revenue pools, rather than through third parties (or under the table, as was the case in the pre-NIL era).

• Scholarships limits for teams will be eliminated, while also imposing caps on roster sizes (expected to be 105 for football, 15 for men’s and women’s basketball). Under the new set-up, every athlete on a given team could be (though is not required to be) on scholarship.

• Annual reporting requirements will be established for schools that pay athletes. The payment pool is expected to be approximately $20.5 million for schools in conferences such as the SEC and Big Ten.

• An NIL clearinghouse for third-party deals exceeding $600 will be established. (Athletes can still negotiate their own NIL deals over and above any direct compensation from their school).

• Authority will be granted to a rules-enforcement structure established by conferences themselves. This would include monitoring roster limits, payments to athletes and NIL requirements.

Should the final settlement agreement be ratified by U.S. District Court Judge Claudia Wilken as expected, the new rules would go into effect on July 1.

Information from the Associated Press was used in this report.