Since 2025, colleges can do something that was unthinkable for a century: pay athletes directly. Revenue sharing is separate from NIL — and understanding the difference matters for every family planning a college athletic career.
What the House settlement did
The settlement of House v. NCAA (approved in 2025) ended the ban on schools paying athletes. Participating Division I schools can now share athletic revenue directly with student-athletes — up to an annual per-school cap. The Year 1 cap (2025-26) was $20.5 million per school. For 2026-27 the cap is estimated at about $21.3 million (based on 22% of the average relevant Power-conference revenue) — an estimate, not a final figure. The cap rises over time. The settlement also created back-pay for past athletes and new enforcement machinery.
Source: College Sports Commission, Revenue Sharing (collegesportscommission.org) — as of August 2026.
Revenue sharing vs. NIL — three different paychecks
- Revenue share — paid by the school itself, out of its athletics revenue, under the cap. The school decides how to allocate it across sports and athletes.
- Third-party NIL — paid by brands, businesses, and collectives for real marketing use of the athlete's name, image, and likeness. Not capped, but under current rules Division I deals of $600 or more are reported through the NIL Go portal, and associated-entity deals are reviewed for genuine NIL activation at reasonable market rates.
- Scholarships and benefits — unchanged, and revenue share stacks on top of them.
What it means for high school athletes
Revenue sharing does not apply to high school — no high school shares revenue with players. But it reshapes recruiting: college offers now involve a real compensation conversation, and the enforcement system watches for revenue-share or NIL money disguised as recruiting inducements. The fundamentals still hold: state rules govern high school NIL, and deals contingent on enrolling somewhere remain prohibited.