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Power Conferences set initial revenue sharing cap for college sports in 2025
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Power Conferences set initial revenue sharing cap for college sports in 2025

The era of revenue sharing in college athletics is here, and now student-athletes will put more money in their pockets than ever before.

Revenue sharing among college sports will begin in the 2025-2026 academic year, and as schools prepare for an unprecedented moment in college athletics, the four power conferences have sent their members an initial income ceiling for next year. according to a report by Ross Dellenger Yahoo.

According to Dellenger’s report, schools are expected to operate under a “projected” cap of $20.5 million next school year. The cap is 22% of Power 4 (ACC, Big Ten, Big 12, SEC) revenue from the previous academic year. In addition, the ceiling includes indexations of 4% during the second and third years, before being recalculated in the fourth year.

Schools are asked to divide the $20.5 million among sports as they see fit. However, most Power Conference schools are expected to heavily skew payments toward football and basketball players.

The era of revenue sharing in college sports stems from the Home vs. NCAA court case that led to a settlement stipulating $2.8 billion in back pay for former athletes, a revenue-sharing plan of more than $20 billion for current and future athletes (which begins in 2025- 2026) and new alignment and enforcement rules for power conferences. in college athletics.