NCAA president Charlie Baker introduced a radical change to the DI athletics model — a new subdivision featuring direct compensation from school to athlete. A fee is required: a minimum of $30,000 annually per athlete for half of a school’s countable athletes. That’s the minimum. There is no cap, but Title IX must be followed, guaranteeing 50% of funds to women athletes.
For the smallest athletic departments, that’s around $5 million to $7 million a year. For the largest departments, it’s at least $12 million and as much as $15 million. Additionally, schools would be permtted to strike NIL deals with their own athletes.
The proposal was dropped on schools without much, if any warning. It is thought that it was done to foster discussion among NCAA schools to write rules regarding compensation of athletes. Baker also says Congress would have to get involved to invoke antitrust exemption as well as protection from college athletes being deemed employees.
It's thought that such a move would have the new division of schools separating their revenue-producing sports, football and basketball, away from the higher education model. It's estimated, at this time, that 30 to 50 schools would jump in at the start but the number may be higher as schools scratch at their budgets to come up with the necessary funds so they have a chance at the big time.
