Intro to Revenue Sharing

Name, Image, Likness (NIL) contracts have played a major role in opening the door for many student athletes to earn money. Income options for student athletes continues to expand with the introduction of revenue sharing.

In July of 2025, the National Collegiate Athletic Association (NCAA) allowed for student athletes to receive a part of the revenue earned through athletics. The NCAA revenue sharing model allows schools to pay athletes up to $20.5 million per year. Over the next 10 years it is expected to grow over $32 million for the annual cap. Funding for revenue sharing comes from a variety of different sources including ticket sales, media rights from TV contracts, sponsorships, and the athletic department’s budget.

Currently, the Atlantic Coast Conference (ACC), Big Ten, Big 12, and Southeastern Conference (SEC) teams have opted into the revenue sharing option and 310 out of the 364 athletic departments have also opted in 2025.

What is Revenue Sharing?

According to Investopedia, revenue sharing is defined as the regular distribution of a portion of corporate wealth to certain stakeholders such as employees or business partners.

Revenue sharing allows universities to pay students directly as opposed to having to sign third-party contracts through NIL deals. This creates a space where students can earn part of the revenue from the universities that they bring in from game day.

Differences from NIL

• Revenue sharing income is paid directly from the university and taken out of the school’s athletic department budget
• NIL deals are earnings from third party companies
• Annual cap growth expected as revenue increases
• Flat annual payments to athletes

Impact on students

• Increased income for students can impact Free Application for Federal Student Aid (FAFSA) funding
• Potential for more full-ride scholarships from revenue sharing payments
• Taxation possibilities on earned income from multiple income streams

Revenue sharing opens the doors to many opportunities for students to increase their financial well-being. It is a game changer for student athletes and allows students to be paid for the long hours put into their sport.

Sources:

https://www.ncsasports.org/blog/what-is-ncaa-revenue-sharing

https://nil-ncaa.com/

https://www.ncsasports.org/blog/what-is-ncaa-revenue-sharing