Marketplace All-in-One A new era of athlete pay in the U.S.
Aug 12, 2025
Freelance sports journalist Kennington Lloyd Smith III, known for his expertise in college and women’s sports, discusses the groundbreaking changes in athlete pay. He explains the implications of the House v. NCAA lawsuit, which allows colleges to directly compensate athletes. The conversation covers disparities in payment across sports, focusing on the WNBA's fight for equitable compensation. Kennington also highlights the growing influence of private equity in college athletics, suggesting a transformation in how sports operate and athletes are paid.
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House v. NCAA Is A Big Structural Shift
- The House v. NCAA settlement is the latest step shifting college athletics toward pay-for-play after NIL opened earning avenues in 2021.
- It lets schools pay up to $20.5M per year and adds roster limits, forcing major structural change.
Money Will Flow To Revenue Sports First
- Schools will prioritize revenue sports when apportioning the $20.5M, concentrating funds in football and men's basketball at big programs.
- Athletic departments face pressure to downsize or reallocate resources to remain competitive and meet new costs.
Find Revenue Or Cut Costs To Cover Payouts
- Athletic departments should explore revenue-generating strategies and cost cuts to fund athlete pay without crippling other programs.
- Consider raising ticket/talent fees, trimming staff, or reallocating budgets to cover the new $20.5M obligation.