Lana Oconnell
The topic of student-athlete compensation has been a highly debated issue in the United States. While college athletics generates billions of dollars in revenue, the question of whether student-athletes should be paid has sparked discussions about amateurism, financial support, and the primary purpose of colleges. Traditionally, student-athletes have received scholarships and benefits but were prohibited from earning salaries. However, recent rulings and settlements have paved the way for student-athletes to receive direct payments, endorsement deals, and compensation for their name, image, and likeness rights. As the landscape of collegiate sports evolves, the discussion around paying student athletes continues to be a complex and controversial topic.
| Characteristics | Values |
|---|---|
| Number of students currently competing in intercollegiate athletics | 520,000 |
| Number of students who are not making any money | 519,000 |
| Alabama quarterback Bryce Young's earnings | $3.2 million |
| North Carolina's basketball team player Armando Bacot's earnings | $500,000 |
| University of Iowa basketball star Caitlin Clark's earnings | $3 million |
| Number of student athletes who receive a full-ride scholarship | 1% |
| Schools that offer athletic scholarships | Division I and Division II |
| Schools that don't offer athletic scholarships | Division III |
| Scholarships offered by Division II | Partial scholarships |
| Scholarships offered by Division I | Full-ride scholarships (often one-year deals) |
| Sports that offer full scholarships | Men's basketball, football, women's basketball, tennis, volleyball, and gymnastics |
| Year in which the Supreme Court allowed student athletes to earn money from their name, image, and likeness | 2021 |
| Year in which California allowed college athletes to sign endorsement deals with brands | 2023 |
| Year in which the NCAA allowed athletes to earn money from their name, image, and likeness | 2021 |
| Amount to be distributed to athletes who competed before July 2021 | $2.75 billion |
| Amount each school will be allowed to distribute to its athletes | $20 million |
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What You'll Learn
Student athletes' scholarships and expenses
Student-athletes in the US have long been prohibited from receiving compensation beyond scholarships and other benefits. However, a 2021 Supreme Court ruling enabled student-athletes to receive payments for using their names, images, and likenesses. This ruling allows student-athletes to earn compensation through booster gifts, endorsement deals, and corporate sponsorships. Despite this change, the majority of student-athletes do not receive full-ride scholarships, and many do not receive any scholarship at all.
Scholarships and Expenses
Athletic scholarships are a form of financial aid awarded to student-athletes based on their athletic abilities and potential contribution to the team. These scholarships can be full-ride or partial and are typically decided by the college coach. Full-ride scholarships usually cover tuition and fees, books, room and board, supplies, and sometimes living expenses. However, even with a full scholarship, there may be indirect college costs not covered, such as textbooks, transportation, meals, and insurance premiums. Partial scholarships are more common and may only cover a portion of tuition, fees, books, room, and board.
The availability of athletic scholarships varies by division level and sport. Only Division I and Division II schools offer athletic scholarships, and full-ride scholarships are primarily reserved for revenue-generating sports such as men's basketball and football. Division III schools do not offer any athletic scholarships. Additionally, the number of athletic scholarships at each school is capped by NCAA regulations, and many colleges do not offer the maximum number allowed.
Other Sources of Funding
Student-athletes can also explore other sources of funding to cover their college expenses. Some private scholarships are available from athletic departments, alumni, or external organisations. On-campus jobs can provide income, although balancing work with athletic and academic commitments can be challenging. Student loans are another option, but they require good credit and a solid income or a cosigner. Work-study programmes and grant aid money can also help supplement the cost of attendance.
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Paying student athletes: Pros and cons
The topic of paying student athletes has been a subject of debate for years, with valid arguments on both sides. Here are some of the pros and cons of paying student athletes:
Pros
- Student athletes spend a significant amount of time participating in athletic activities, often equivalent to a full-time job, which warrants financial compensation.
- Student athletes generate billions of dollars in revenue for their colleges and universities, yet they do not receive a share of this income. Paying them would address this imbalance.
- Student athletes from low-income backgrounds may struggle to cover their daily expenses with only partial scholarships. Additional financial support could help bridge the economic divide between student-athletes and non-athletes.
- Financial compensation could provide a safety net in the event of career-ending injuries, supporting their transition to life after sports.
- Paying student athletes could reduce their financial stress, allowing them to focus more on their studies and athletic pursuits without needing to take on additional jobs.
Cons
- Student athletes already receive compensation in the form of scholarships, which cover tuition and other expenses. Providing salaries on top of this could create additional financial burdens for colleges, especially for less profitable sports.
- Paying student athletes may detract from the primary purpose of college, which is to provide an education. Receiving salaries might cause athletes to prioritize their paid work over their academic obligations.
- Implementing salaries for student athletes could create legal complexities regarding employment contracts and compliance with regulations such as Title IX.
The debate surrounding the payment of student athletes is complex, and it is essential to consider the potential advantages and disadvantages of such a decision. While student athletes contribute significantly to the financial success of their colleges, the existing scholarship system already provides a form of compensation. However, the lack of universal scholarship coverage and the potential for career-ending injuries are compelling arguments in favour of additional financial support for student athletes.
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Student athletes' endorsements and sponsorships
Student-athletes in the United States do not receive salaries for their athletic endeavours. Instead, they may receive partial or full-tuition scholarships, room, board, and other benefits such as academic support and healthcare. However, critics argue that not every student-athlete receives a scholarship, and those who do often only receive partial scholarships that do not cover all school expenses. This has led to a debate about whether student-athletes should be paid.
In 2021, the Supreme Court ruled that student-athletes could receive payment for using their names, images, and likenesses. This ruling enabled student-athletes to receive compensation through endorsement and sponsorship deals with companies, as well as booster gifts. This policy change, known as NIL (Name, Image, Likeness), has opened up a new stream of income for student-athletes, allowing them to monetise their popularity and influence.
Since the ruling, companies such as McDonald's, Microsoft, PepsiCo, Berkshire Hathaway, Amazon, and Unilever have signed endorsement deals with student-athletes. These deals can be extremely lucrative, with Alabama quarterback Bryce Young reportedly earning at least $3.2 million from companies like Nissan and BMW of Tuscaloosa. However, it is important to note that these deals are predominantly offered to the top players in competitive sports such as football and men's basketball.
While the NIL policy has created new opportunities for student-athletes, it has also highlighted the disparities between male and female athletes in terms of coverage and endorsement deals. Female athletes, particularly those in non-revenue sports, may struggle to capitalise on their NIL and may continue to face challenges in securing endorsement deals. Additionally, universities are faced with the task of navigating this new landscape and protecting their athletes from potential pitfalls.
The impact of the NIL policy on the dynamic between student-athletes and their schools is also worth considering. While student-athletes can now earn money through endorsements and sponsorships, they are still not paid salaries by their colleges or universities. This dual identity as both a student and an influencer or endorser presents unique challenges and opportunities for student-athletes, and it remains to be seen how this will shape the future of college sports.
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Student athletes' financial struggles
Historically, the National Collegiate Athletic Association (NCAA) prohibited student-athletes from receiving compensation beyond scholarships and benefits, adhering to an amateurism model. However, recent developments, including Supreme Court rulings and legislative changes, have disrupted this tradition. In 2021, the NCAA changed its bylaws, allowing athletes to receive payments for the use of their names, images, and likenesses in endorsements and sponsorships. This opened avenues for student athletes to earn money, but it also raised concerns about fairness, as only a small percentage of athletes in prominent sports and teams benefit from these opportunities.
The financial landscape of collegiate sports is evolving, with a growing recognition of the billions of dollars generated by college athletes for their schools and the need for fair compensation. In 2024, a proposed legal settlement by the NCAA and its Power Five conferences aimed to address this issue by allowing schools to directly pay athletes. This settlement, approved by a judge in June 2025, marked a significant shift, enabling schools to distribute millions of dollars directly to athletes.
Despite these changes, the debate surrounding student athlete compensation persists. Some argue that paying college athletes could detract from the primary purpose of education and create concerns related to Title IX compliance. Others emphasize the potential benefits of financial security, especially in cases of career-altering injuries. Additionally, paying student athletes may alleviate financial burdens on their families and encourage them to stay in education before pursuing professional careers. While the amateurism model in college sports is undergoing transformation, the impact of these changes on the athletes, schools, and the overall collegiate sports landscape remains to be fully understood.
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Student athletes' legal rights
Student-athletes in the United States have historically not been paid salaries by their colleges or universities. Instead, they receive scholarships, academic support, healthcare, and other benefits. However, recent changes have allowed student-athletes to earn money from their name, image, and likeness (NIL). This has sparked discussions about the legal rights of student-athletes and whether they should be designated as employees of their institutions.
Financial Compensation for Student-Athletes
Student-athletes have argued that they should receive financial compensation for their participation in athletics programs, especially considering the rigorous demands on their time and the potential for injuries that could impact their future careers. While some athletes receive full-ride scholarships, most only receive partial scholarships that do not cover all school expenses. Paying student-athletes could help bridge the economic divide between student-athletes and non-athletes, especially those from low-income backgrounds.
NIL Rights and Employment Status
The ability for student-athletes to monetize their NIL is a recent development, with the Supreme Court ruling in 2021 that these individuals could receive payment for the use of their NIL. This has led to endorsement deals, corporate sponsorships, and agreements with companies. However, this has also raised concerns about the employment status of student-athletes. If they are considered employees, there may be budget impacts on universities, potentially affecting support for all sports and raising Title IX issues.
Legal Protections and Uniformity
There is a push for federal legislation to protect the NIL rights of student-athletes and provide a consistent framework across all states. Currently, the lack of uniformity in state laws has created disparate benefits and opportunities for college athletes. Federal legislation could enhance safeguards, affirm the unique university-student-athlete relationship, and provide safe harbor for the NCAA. Additionally, stakeholders support the FAIR College Sports Act, which aims to preserve the rights of student-athletes, protect them from bad actors, and ensure they benefit from their NIL.
Non-Discrimination and Equal Opportunity
Student-athletes have the right to fair and equitable treatment and protection against discrimination based on sex. They have the opportunity to participate in extracurricular activities, inquire about athletic opportunities, apply for athletic scholarships, and receive equitable treatment in equipment, scheduling, transportation, access to tutoring, and medical facilities. These rights ensure that student-athletes have equal opportunities regardless of their gender or other protected characteristics.
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Frequently asked questions
Traditionally, college athletes have not been paid a salary, but they often receive scholarships and other benefits such as academic support and healthcare. However, in 2021, the Supreme Court ruled that student-athletes could be compensated for the use of their names, images, and likenesses. This has opened up opportunities for them to earn money through endorsements, sponsorships, and other deals.
There are approximately 520,000 students currently competing in intercollegiate athletics in the US.
College athletes can get paid through a variety of ways, including endorsement deals, sponsorship agreements, and social media activities. They can also receive gifts from boosters and make deals with companies to use their names, images, and likenesses.
Many college athletes receive scholarships that cover their tuition and other expenses. However, not all athletes receive scholarships, and only a small percentage receive full-ride scholarships. Those who don't receive scholarships may have to take out student loans or rely on other sources of financial support.
There are arguments both for and against paying college athletes. Some people believe that college athletes should be paid because they generate revenue for their schools and face rigorous schedules that leave little time for part-time jobs. Others argue that paying college athletes could detract from the primary purpose of college, which is to provide an education, and that scholarships and other benefits are sufficient compensation.
