AAC Sets Standard For Revenue Sharing

The American Athletic Conference (AAC) under the leadership of commissioner Tim Pernetti is making strides to enhance its competitiveness in the collegiate football landscape.

Recently, the AAC unveiled a groundbreaking initiative that positions the athletes to excel in the evolving era of revenue sharing linked to Name, Image, and Likeness (NIL).

As reported by Ross Dellenger from Yahoo Sports, the AAC has introduced a “Minimum Investment Program,” which sets a precedent as the first NCAA conference to mandate standard benefits for its schools and athletes.

This program, effective for the 2025-26 academic year, requires all AAC institutions to provide a minimum of USD$10 million in cumulative benefits over a three-year period.

Highlights of the proposed initiative centre around the anticipated settlement from an antitrust lawsuit, which, pending approval, is set to deliver significant financial support for student-athletes.

Schools will be able to offer full roster scholarships and share what is likely to be approximately USD$20.5 million annually with their athletes.

The programme also incorporates additional avenues for schools to deliver benefits, which include up to USD$2.5 million dedicated to new scholarships, direct revenue sharing with athletes, as well as an additional USD$2.5 million in Alston payments.

However, if any institution fails to meet the USD$10 million threshold by the conclusion of the 2027-28 academic year, they may be subjected to a review of their membership status within the conference, although the specifics of this review process remain undisclosed.

Notably, the Army Black Knights and Navy Midshipmen will not be affected by these standards due to their status as federally funded service academies, which restricts their participation in such agreements.

Pernetti’s strategic initiative was formulated in collaboration with Huron Consulting Group, which assessed the AAC and set appropriate standards and timelines.

Unlike many Group of 5 conferences that adhere to Power 4 guidelines, this initiative grants AAC schools greater autonomy in how they allocate these minimum benefits, allowing for a unique flexibility in distribution.

Pernetti believes that this minimum standard is not merely a target but a stepping stone for many institutions, including Tulane, which are poised to surpass the USD$10 million requirement.

As the dynamics of college football shift, particularly with ongoing developments in conferences like the Pac-12, the AAC is positioning itself as an appealing contender in the race for College Football Playoff participation.

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