College Sports – Athletes can be paid directly by colleges for the first time

This was made possible through an agreement between the National Collegiate Athletic Association and the so-called “power conferences.” These are influential associations of universities that act as umbrella regional organizations.

Although the agreement initially only affects the union and the five mergers, the new regulations are expected to apply to all college sports.

College sports are a multi-billion dollar business

Until now, college athletes were considered amateurs — which brought with it corresponding restrictions that universities and athletes had been protesting for a long time. Specifically, the agreement now relates to the settlement of three pending antitrust actions.

The umbrella organization wants to pay more than $2.7 billion in compensation over a decade to former and current athletes. In addition, the two parties also agreed to a revenue-sharing plan that allows each college to share up to about $20 million annually among its student-athletes.

College sports are a billion-dollar business in the United States, with universities investing millions in stadiums and the salaries of their coaches. Television rights are very popular, along with lucrative sponsorship contracts.

This message was sent on May 25, 2024 via Deutschlandfunk.