College sports money is changing fast, and NCAA revenue sharing is one of the biggest reasons why.
Starting in the 2025–26 season, some Division I schools can pay student-athletes directly from their athletic department budgets, separate from NIL deals.
That can affect who gets paid, how teams are built, and how recruiting conversations sound moving forward.
This blog breaks it down in simple terms: what NCAA revenue sharing is, why it started, and how the payment cap and new roster limits work.
It also explains how revenue sharing is different from NIL, what it could mean for football, basketball, and other sports, and what recruits and families should ask coaches before committing.
What is NCAA revenue sharing?
NCAA revenue sharing is a new system where a college can pay student-athletes directly using money from its athletic department (like TV money, tickets, and sponsorships).
It was created through the House v. NCAA settlement and starts in the 2025–26 school year. This is separate from NIL, which is money athletes earn from outside companies.
Key Numbers:
- Cap: In 2025–26, a school can pay up to about $20.5 million total to athletes, and that cap is expected to go up over time.
- 22% idea: The cap is based on up to 22% of average “power-conference” revenue from media rights, ticket sales, and sponsorships.
- Roster shift: Old scholarship limits are being replaced by roster limits. For example, FBS football is expected to have a 105-player roster cap.
- NIL still exists: Athletes can still sign NIL deals, but many $600+ deals may need to be submitted for review through the NIL process tied to the College Sports Commission system.
How NCAA Revenue Sharing Works
NCAA revenue sharing lets schools opt in, follow an annual spending cap, divide money by sport and athlete, use roster limits, and report bigger NIL deals.
1. Schools Opt in and Set a Payment Plan
Not every school has to take part in NCAA revenue sharing. Most Power conference schools (like the SEC, Big Ten, ACC, and Big 12) are expected to join because they earn the most money from TV deals and tickets.
Other Division I schools can choose whether to opt in or not. Each school that participates also decides how it will split the money among its athletes and sports.
Some may spread payments across many teams, while others may focus mainly on football and basketball.
2. The Annual Cap Sets the Ceiling
Each participating school has a total spending limit, called a cap. For the 2025–26 season, that cap is about $20.5 million per school, and it is expected to increase over time.
The cap matters because it puts a limit on how much schools can promise recruits. This helps reduce extreme spending gaps and creates a more even playing field when athletes compare offers from different programs.
3. Allocation by Sport and by Athlete
Schools decide how to divide their revenue-sharing money. In most cases, sports that bring in more money and have larger audiences receive a bigger share.
Roster size also matters because splitting money among fewer players means higher pay per athlete.
Example of a Typical Power School Split (Not a Rule):
| Sport group | Approx. share |
|---|---|
| Football | ~75% |
| Men’s basketball | ~15% |
| All other sports | ~10% |
Important note: Sports with smaller rosters, like men’s basketball, can have higher average pay per player than sports with large rosters, even if the total team share is smaller.
4. Roster Limits Replace Scholarship Limits
Under revenue sharing, scholarship limits are replaced by roster limits. This means teams can have a set number of players instead of a set number of scholarships.
For example, FBS football is expected to have a 105-player roster cap.
This change may reduce walk-on spots and force coaches to be more selective. Depth charts could become tighter, and some athletes may need to look more closely at playing time and role when choosing a school.
5. NIL Still Exists, but Reporting Gets Stricter
Revenue sharing and NIL work in separate lanes:
- Revenue sharing: Money paid directly by the school
- NIL: Money paid by outside companies or brands
Athletes can earn from both at the same time. However, many NIL deals over $600 may need to be submitted for review through the NIL Go system, which is overseen with help from Deloitte.
The goal is to make sure NIL payments are for real marketing value and not hidden pay-for-play deals.
Together, these steps show how NCAA revenue sharing changes how college athletes are paid, recruited, and managed going forward.
How NCAA Revenue Sharing Impacts Recruiting
Revenue sharing changes recruiting by adding school-paid money to the offer, so recruits compare scholarships, payouts, roster limits, and real NIL chances more clearly.
1. The New “Total Package” Recruits Compare
Recruiting is no longer just about scholarships and facilities. Now, athletes look at the total package, which includes scholarship value, expected revenue-sharing money, and NIL opportunities.
At bigger programs, revenue sharing creates a more stable payment baseline that coaches can point to during recruiting.
This changes the pitch because money from the school is no longer only coming from collectives or outside deals.
For many recruits, this makes offers easier to compare and adds a clear financial floor at schools with substantial athletic budgets.
2. What Recruits Should Ask Coaches
Recruits and families should ask direct questions so there are no surprises later. These questions can help clarify how a program plans to handle revenue sharing:
- Is your program participating in revenue sharing, or planning to soon?
- How do you split revenue-sharing money across different sports?
- Is the cash shared equally, by player role, or based on playing time?
- How do roster limits affect walk-ons and long-term development players?
- How does your staff handle NIL Go submissions for NIL deals over $600?
- Clear answers help recruits understand both opportunity and risk.
3. Positional and Sport-by-Sport Ripple Effects
Revenue sharing does not affect every sport the same way. Football teams may feel a tighter depth because roster caps limit how many players can be carried.
Men’s basketball has more minor rosters, which can lead to higher pay per player but also more pressure to perform. For Olympic and non-revenue sports, the impact is less specific.
Some athletes may gain more support, while others could see changes in scholarships or team size depending on school budgets.
Who Enforces Revenue Sharing and NIL Rules?
The College Sports Commission (CSC) and the NIL Go clearinghouse work together to review key NIL deals and enforce revenue-sharing rules, keeping athlete payments fair and rule-based.
The Oversight Ecosystem
A new group helps oversee revenue sharing and NIL rules in college sports. This group is often called the College Sports Commission (CSC). Its job is to make sure schools and athletes follow the new payment rules.
Along with the CSC, there is a system called NIL Go, which works like a clearinghouse. Schools submit certain NIL deals into this system so they can be reviewed.
The goal is to bring more structure, fairness, and trust to how athletes are paid.
What Gets Reviewed
Not every NIL deal is reviewed, but many third-party NIL agreements over $600 must be submitted for approval.
These deals are checked to see if they reflect fair market value, meaning the athlete is being paid a reasonable amount for real marketing or promotional work.
This review is meant to stop pay-for-play deals that pretend to be NIL. In simple terms, it helps prevent boosters or companies from paying athletes just to choose or stay at a school instead of paying them for real NIL activities.
Final Thoughts
NCAA revenue sharing is changing college sports in a real, practical way. It adds school-funded pay on top of scholarships, while NIL still gives athletes chances to earn money from outside brands.
But it also brings new rules, like roster limits and stricter deal reviews, which can affect walk-ons, team depth, and opportunities in more minor sports.
For recruits and families, the most brilliant move is to look at the whole picture: how a program plans to share money, what role is expected, and what support exists beyond the field or court.
The more questions asked now, the fewer surprises later. Want help building a coach-question checklist? Drop the sport and level, and a ready-to-use list will be provided.
