The approval of the NCAA vs. House settlement on June 6 marked the beginning of a new era in college athletics. The settlement will impact Alabama Athletics on several levels, from athletes’ compensation to the allocation of funds and the size of program rosters.
The University of Alabama will begin directly paying its student-athletes with the introduction of revenue sharing, thus largely eliminating amateurism in college athletics for the foreseeable future. Also notably, $2.8 billion in damage claims are slated to be provided to eligible athletes who competed between 2016 and 2024.
“I tell our coaches and our students, ‘The three most significant events in the history of college athletics are, first, the NCAA’s foundation [1905], second, the adoption of Title IX [1972] and all the opportunities that were created because of it, and, third, the House settlement,’” Alabama athletic director Greg Byrne said in an interview with ESPN.
In this new landscape of college sports, Byrne will now be tasked with directly allocating funds across a vast number of successful athletic programs, which he called “challenging.”
“I tell our coaches, ‘We don’t have a sport here at The University of Alabama just to have a sport,’” Byrne told ESPN.
Schools will now be allowed to share $20.5 million with their athletes in 2025. According to On3 Sports, Power Four football programs are slated to be allotted $13-$16 million in 2025.
According to the ruling of the case, the cap on the funds schools are allowed to allocate each year is expected to continue to rise each year throughout the 10-year agreement. This could see schools sharing up to $30 million with student-athletes in the coming years, depending on revenue levels, as the revenue-sharing cap is calculated at 22.5% of a school’s average athletic revenue.
ESPN reported that athletic directors across the country believe the imbalance in funding across sports will “skew even further” in favor of football and men’s basketball, which stand to provide more financial returns than less popular sports.
Name, image and likeness deals will also change following the approval of the settlement. The terms of the settlement direct schools to submit all deals from third-party sources exceeding $600 to a clearinghouse called “NIL Go” run by the accounting firm Deloitte, to ensure all deals abide by the agreed terms.
The settlement also provides for the potential of third-party arbitration to punish athletes and/or schools if a deal is not approved by the clearinghouse. This will change how schools operate with NIL, potentially putting punishment back on the table after the NCAA was unsuccessful in its attempts to regulate NIL.
“In a gathering at the ACC spring meetings last week, Deloitte officials reportedly shared that 70% of past deals from NIL collectives would have been denied, while 90% of past deals from public companies would have been approved,” On3 reported.
Also among the changes is the introduction of roster limits, marking the end of the walk-on. This will limit opportunities for aspiring college athletes in the future.
Under these new rules, some athletes hoping to live out a feel-good story similar to former Crimson Tide football player Levi Wallace will no longer be able to. While some SEC football programs will continue to have space for 20 walk-ons, this will not be the case for all programs.
Wallace notably worked his way into Alabama’s defensive rotation and later the NFL, playing seven seasons with three different teams after beginning his career at Alabama as a walk-on in January 2014.
As part of the settlement, all walk-ons currently on rosters will be grandfathered in, but no further walk-on spots are to be allotted for most programs across the country going forward.
For Alabama basketball head coach Nate Oats, however, the introduction of roster limits means two more roster spots are available to him going forward.
This is notable, considering the Crimson Tide’s injury battles in 2024-25, losing guards Latrell Wrightsell Jr. and Houston Mallette for the season, while forwards Grant Nelson and Derrion Reid dealt with nagging injuries throughout conference and tournament play.
Adding two more scholarship players to the roster could further see minutes spread out, potentially preventing injuries in the future.
“We’ve got 11 guys on the roster right now on scholarship,” Oats said May 14 at the Regions Tradition. “If we went into the season with just these 11, I think we’d be fine. But as you saw last year, some injuries happen. You need some depth.”
The House settlement will go into effect on July 1.
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