Finance 3 min read

NCAA Board of Directors conditionally approves House settlement-related rules changes

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The Division I Board of Directors has taken a significant step in amending NCAA rules, which are set to be enacted contingent upon the court’s approval of the House settlement, this move will see the elimination of over 150 rules, a groundbreaking change that aims to facilitate the provision of additional benefits to student-athletes, marking the first phase of anticipated reforms.

Once the settlement receives final approval, schools will be allowed to make direct financial payments to student-athletes, including compensation for the use of their name, image, and likeness (NIL).

With a deadline of June 15 looming, institutions must determine if they will adopt these new benefits for the upcoming academic year.

Among the board’s key approvals, subject to the court’s validation, are several proposals designed to enhance flexibility and support for student-athletes:

1. Scholarship Revisions: Schools will be permitted to offer full scholarships to all student-athletes on a declared roster, removing maximum scholarship limits by sport. This change is particularly notable as it effectively doubles scholarship availability in women’s sports, promoting greater equity.

2. Financial Benefits: Autonomy conference schools, along with others opting into the settlement, can provide up to $20.5 million in direct financial benefits.

3. NIL Clarity: New regulations aimed at clarifying the NIL landscape for all Division I institutions will be instated. This includes provisions for independent reviews of third-party NIL agreements for student-athletes and associated entities.

In addition to these provisions, the board approved regulations consistent with the settlement terms that will:

  • Establish technological platforms enabling schools to track payments to student-athletes and facilitate reporting of third-party NIL agreements.
  • Outline remedial actions for student-athletes whose NIL agreements fall outside established business purposes or reasonable compensation ranges.
  • Form an enforcement group by the defendant conferences to oversee compliance with settlement terms, including the management of third-party NIL agreements and benefits caps.

To qualify for the new benefits, student-athletes must maintain full-time enrolment, adhere to Division I progress-toward-degree standards, and receive benefits throughout their eligible period.

In a broader context, the board also engaged with the Decision-Making Working Group, which is exploring a renewed committee structure within Division I.

While still in development, the recommended model aims to streamline governance by reducing the number of committees, enhancing the Association’s agility in addressing the evolving landscape of college sports.

Although no formal vote was taken on restructuring the decision-making processes, the board instructed NCAA staff to gather broader feedback on these proposed concepts.

The meeting also touched upon the flexibility of conference membership requirements, emphasising the need for adaptability in light of the forthcoming changes linked to the proposed settlement.

While no immediate actions were undertaken, the discussions highlighted the importance of maintaining stability within Division I amidst the anticipated shifts in college athletics and higher education.

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