In 2024, the landscape of college athletics changed again. The House v. NCAA settlement resolved a class action lawsuit that had been building for years, and the result was a fundamental shift in how college athletes can be compensated. If your athlete is currently in college or heading there, this settlement affects your family directly.

What the Lawsuit Was About

The House settlement addressed claims that the NCAA and its member schools had wrongfully restricted athletes from sharing in the revenue generated by college sports. For decades, schools generated billions of dollars annually from television contracts, merchandise, and ticket sales while athletes received only their scholarships. The settlement said that arrangement was no longer acceptable.

What Changed

Starting with the 2025 academic year, Division I schools are able to pay athletes directly — up to approximately twenty two million dollars per school annually distributed among their athletes. That number is expected to grow over time. This is completely different from NIL deals with outside brands. This is your athlete's own university writing them a check. The settlement also created a back pay pool for athletes enrolled between 2016 and 2024 who were not compensated under the old rules.

What This Means for Your Family Right Now

Revenue sharing income from your school is still taxable income. The same tax planning considerations that apply to NIL deals apply here — quarterly estimated payments, proper categorization, and a structure that handles the money correctly from the moment it arrives. Do not assume the school is managing the tax implications for your athlete. They are not.

Revenue sharing agreements also come with terms. Some schools distribute payments equally across the roster. Others weight payments by sport, position, or performance. Understanding what your athlete's specific agreement says matters before that money starts flowing.

The Bigger Picture

NIL from outside brands plus direct revenue sharing from the school means that a Division I athlete at a major program may now be receiving meaningful income from multiple sources simultaneously. Managing all of it correctly requires a structure — not just a spreadsheet. This is exactly the conversation we have in a 30 minute consultation. The House settlement created new money for athlete families. Our job is to make sure that money builds something lasting.

"The game will end. It ends for everyone. The question is what is left standing when it does." — Marty McNair