Savanna Hoffman
The topic of paying student athletes has been a highly debated issue for many years. While college athletes in the United States have traditionally received scholarships and stipends to cover tuition and other academic expenses, there has been a growing push for them to be compensated financially, especially given the revenue and positive attention they bring to their colleges. The National Collegiate Athletic Association (NCAA) has long prohibited student-athletes from receiving external forms of compensation beyond scholarships, citing the principle of 'amateurism' in college sports. However, recent litigation and changes in federal attitudes have led to a shift in this stance, with courts ruling in favor of allowing student-athletes to receive payment for their name, image, and likeness (NIL). This has opened up new avenues for compensation, including endorsement deals and agreements with companies. Despite these changes, the future of college sports remains uncertain, with ongoing debates about the impact of these rulings on the viability of college sports and the need for guardrails to ensure fair and balanced practices.
| Characteristics | Values |
|---|---|
| Student-athletes' compensation | Scholarships, stipends, and other benefits |
| Student-athletes' revenue generation | Billions of dollars for their universities |
| Student-athletes' expenses | Daily expenses, especially for those from low-income backgrounds |
| Student-athletes' injuries | Long-term consequences on career prospects and physical health |
| Student-athletes' compensation beyond scholarships | Endorsement deals with brands, payments for name, image, and likeness (NIL) |
| Student-athletes' rights | The right to unionize |
| Student-athletes' compensation limitations | Rules changed to permit players to receive compensation for NIL from third parties |
| Student-athletes' pay-to-play | Not allowed, every NIL deal must be legitimate |
| Student-athletes' direct compensation | Approved by a U.S. district court judge in June 2025 |
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What You'll Learn
Student-athletes can receive payment for their name, image, and likeness
In 2019, California became the first state to adopt a law generally allowing student-athletes to accept compensation for their NIL. The Fair Pay to Play Act, authored by California state senators Nancy Skinner and Steven Bradford, enabled college athletes in California to sign endorsement deals with brands. This law inspired similar legislation across other states and at the national level.
While the NCAA initially resisted efforts to compensate college athletes beyond scholarships and stipends, they eventually implemented an interim policy in 2021, allowing student-athletes to make money from their personal brand. This policy change opened avenues for college athletes to profit from their NIL through endorsement deals, social media influencing, promotional appearances, and more.
Despite the progress, the landscape of NIL compensation remains fragmented due to varying state-level regulations. The lack of standardised rules across states has led to uncertainty about how much college athletes are being paid and by whom. Additionally, the absence of a national tracking system for NIL deals further contributes to the opaqueness of the situation.
To address these challenges, some have called for the establishment of a federal standard to regulate NIL deals and ensure fairness and transparency in the compensation of student-athletes.
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Colleges can pay athletes directly
Student-athletes in the United States are not paid salaries like professional athletes. Instead, they are "compensated" through athletic scholarships that usually cover part of their tuition and other academic expenses. However, this has been a contentious issue, with many believing that athletes deserve more given the revenue and positive attention they bring to their colleges.
In 2019, California Governor Gavin Newsom signed the Fair Pay to Play Act, allowing college athletes in California to sign endorsement deals with brands. This was the first step towards allowing student-athletes to profit from their name, image, and likeness (NIL). The Supreme Court's 2021 decision in NCAA v. Alston further shed light on modern federal attitudes towards student-athlete compensation, rejecting the NCAA's "amateurism" argument as overly broad and outdated.
The House v. NCAA settlement, approved in June 2025, is a major milestone in the push to remove amateurism rules from college sports. It allows universities to pay athletes directly, with new guidelines on NIL and roster limits. Each school can pay its athletes up to a certain limit, with the annual cap expected to start at approximately $20.5 million per school in 2025-26 and increase every year. This settlement paves the way for a new era in college sports, where athletes will receive paychecks directly from their universities.
While this settlement is a significant step forward, there are still some concerns and potential challenges to be addressed. The limit on booster spending, aimed at protecting competitive balance, may not effectively slow the rapid increase in money flowing to athletes at the NCAA's richest schools. Additionally, the settlement itself may lead to further lawsuits, particularly surrounding issues such as Title IX and limits on compensation.
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Student-athletes can receive athletic scholarships
Athletes can increase their chances of receiving a larger scholarship offer by filling a specific and important role on the team. For example, a baseball or softball pitcher is more likely to receive a larger offer. Additionally, athletes can negotiate scholarship offers by using other offers as leverage. Athletic scholarships can also come from private sources, such as endowment scholarships set up by former athletes or alumni supporting a specific sport or cause.
Division level can also impact the amount of scholarship money received. For instance, a lower-level recruit for Division I might receive a larger scholarship at the Division II level. It's important to note that Ivy League schools do not offer athletic scholarships but provide need-based financial aid. Families with an annual income of less than $65,000 may not need to contribute financially to their student-athlete's education, while those with higher incomes may be expected to contribute a percentage.
While athletic scholarships can provide significant financial support, they may not cover all the costs associated with attending college. Students should carefully review their scholarship offers and understand the potential additional expenses, such as textbooks, transportation, meals, and insurance. To help with these indirect costs, the NCAA provides Division I schools with the "Student Assistance Fund" (SAF) to provide additional financial resources to athletes.
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Student-athletes can receive additional benefits beyond scholarships
The NCAA has long maintained that student-athletes are not employees and thus cannot be paid salaries. Instead, they receive athletic scholarships that may cover part or all of their tuition and other academic expenses. However, critics argue that the current system is unfair, as athletes generate significant revenue for their universities while struggling to meet their basic needs. Additionally, coaches and administrators reap the benefits of this revenue, further highlighting the inequities of the system.
In recent years, there has been a growing push for student-athlete compensation, and several developments have challenged the NCAA's amateurism model. Firstly, the Supreme Court's decision in NCAA v. Alston in 2021 allowed for non-scholarship earned income and rejected the NCAA's broad "amateurism" argument. This ruling enabled student-athletes to receive compensation through endorsement deals, booster gifts, and agreements with companies to utilize their names, images, and likenesses.
Secondly, state-level legislation, such as the Fair Pay to Play Act in California, has allowed college athletes to accept compensation for their name, image, and likeness. This act, signed into law by Governor Gavin Newsom in 2019, opened a new avenue for student-athletes to be compensated for their participation in college sports. Additionally, the College Athlete Economic Freedom Act, introduced at the national level, aimed to allow student-athletes to unionize and earn money from their name, image, and likeness. While this act did not pass, it indicates a shift in attitudes towards student-athlete compensation.
Finally, lawsuits such as House v. NCAA have resulted in landmark settlements totaling billions of dollars. These settlements compensate athletes for lost opportunities and ensure fair treatment moving forward. The Hubbard Settlement, for example, provides for additional benefits beyond existing scholarships for student-athletes. These developments collectively demonstrate a movement towards recognizing and valuing the contributions of student-athletes beyond mere scholarships.
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Student-athletes can receive compensation via booster gifts
Student-athletes can receive compensation in various ways, and one of the most prominent methods is through booster gifts. Booster gifts are a form of donation or sponsorship provided by individuals or organisations who support a particular college or university athletic program. These gifts are often given to the institution, which then distributes them to the student-athletes based on certain criteria or needs.
The concept of booster gifts is a way to provide financial support to student-athletes without directly paying them a salary. This is important because, in the United States, the National Collegiate Athletic Association (NCAA) operates under an "amateurism" model, which prohibits student-athletes from receiving salaries as professional athletes do. Instead, student-athletes are typically offered athletic scholarships that cover part or all of their tuition fees and other academic expenses. However, with the rise of the push for student-athlete compensation, the definition of "amateurism" in college sports has started to fade.
The Supreme Court's decision in NCAA v. Alston in 2021 played a pivotal role in expanding the avenues for student-athlete compensation. The Court rejected the NCAA's "amateurism" argument, recognising the revenue-generating nature of college sports and the need for student-athletes to receive fair compensation. This ruling enabled student-athletes to receive compensation through booster gifts, agreements with companies, and endorsements.
Booster gifts can come from various sources, such as wealthy alumni, local businesses, or organisations with an interest in supporting college athletics. These gifts can be in the form of monetary donations, equipment, or other resources that benefit the student-athletes and enhance their overall experience. Additionally, booster clubs or collectives, which are groups of donors who pool their funds, can also provide compensation to student-athletes. However, there may be restrictions on the amount of compensation that can be received from these sources, as seen in the California settlement, where the combined compensation to all athletes was limited.
While booster gifts provide a valuable source of funding for student-athletes, it is important to note that there may be potential challenges or controversies associated with this form of compensation. For instance, there could be concerns regarding the influence of donors on athletic programs or the potential for unequal distribution of funds among athletes. Nevertheless, with the evolving landscape of student-athlete compensation, booster gifts have become an increasingly recognised method of providing financial support to student-athletes, helping to bridge the economic divide between student-athletes and non-athletes.
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Frequently asked questions
No, student athletes are not paid a salary.
Student athletes are compensated through athletic scholarships that cover the cost of tuition and other academic expenses, such as room, board, textbooks, and healthcare.
Yes, following the Fair Pay to Play Act, college athletes can earn money from endorsements, sponsorships, and other business ventures. They can also profit from their name, image, and likeness (NIL).
The NCAA has traditionally resisted efforts to compensate student athletes beyond scholarships, citing an amateurism model. However, due to legal challenges and changing federal attitudes, the NCAA has started to allow college athletes to profit from NIL opportunities.
Paying student athletes can help level the playing field by offering financial support to those from low-income backgrounds. It can also provide financial security in case of injuries and give athletes better resources to cope with potential setbacks or career transitions.
