Expansion of Scholarships in College Sports Marks a New Era for Athletes

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ICARO Media Group
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26/07/2024 22h45

In a groundbreaking development for college sports, more than 750 additional scholarship spots will be made available to student-athletes. The House settlement agreement, made public on Friday, revealed that college leaders have taken the decision to expand scholarships to full rosters in every sport, effectively eliminating scholarship restrictions and replacing them with roster size limits.

The primary aim of this new scholarship and roster structure is to prevent future lawsuits and ensure fair opportunities for all athletes. The changes will take effect from the 2025-26 academic year and align with the settlement's new model, which permits schools to directly share revenue with athletes.

Commissioners recently finalized the new roster limits, which were unveiled alongside the court filing on Friday. Under the revised system, schools will have the freedom to offer scholarships to each player on a sport's roster, up to the new roster limits. This move will result in approximately 790 new scholarships becoming available across the 40-plus NCAA sports covered in the settlement. This marks a significant increase in comparison to the current NCAA model, which currently offers around 500 scholarships for all sports combined. The new roster limits will push this number to over 1,200.

For instance, in the sport of football, which currently has a scholarship restriction of 85, the new roster limit will be set at 105. This translates into a 20-scholarship increase for schools willing to provide the maximum number of scholarships. Similarly, baseball, with a current scholarship restriction of 11.7, is expected to expand its roster to 34, representing a substantial 22.3 scholarship increase.

However, while schools are now permitted to offer scholarships to all players on their rosters, it is important to note that they are not obligated to do so. Schools and conferences in the Group of Five, FCS, and non-football playing Division I programs, who are not defendants in the settlement case, will be subject to the roster limits, reporting system, and enforcement mechanism only if they choose to share revenue with athletes. They retain the option to opt out of the new model if they decline revenue sharing.

Crucially, as part of the settlement stipulation, no sport will see a reduction in scholarship spots. Many schools are already preparing to significantly increase their scholarship offerings. According to administrators from several power conferences, programs are expected to allocate an additional $3-7 million annually towards scholarships, with a portion of that amount ($2.5 million) eligible to count towards the revenue-sharing cap, projected to begin at or around $21.5 million. For top power programs, the combined cost of both the scholarship additions and revenue-sharing with athletes could exceed $30 million each year.

While these scholarship increases are underway, schools must ensure compliance with Title IX regulations - a federal law that prohibits gender discrimination in educational institutions. This means that any scholarship increments in men's sports will likely need to be replicated in women's sports, leading to additional costs.

However, it is worth noting that not all programs will be able to afford such a substantial increase in scholarships. Some administrators have outlined plans to "tier" their sports, reducing investment in certain programs while increasing investment in others. This may involve staff and salary cuts as well as a reduction in scholarships, particularly in Olympic sports that generate little to no revenue.

The new roster limits signify a momentous shift in college sports, aimed at providing more opportunities for student-athletes. With the expansion of scholarships and the ability to share revenue directly with athletes, this new era promises to reshape the landscape of collegiate athletics. The changes are set to take place from the 2025-26 academic year as colleges prepare to allocate resources to accommodate the increased scholarship spots.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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