Revenue Sharing in College Sports: What the New Changes Mean for Student-Athletes

Introduction

For decades, college athletics has generated billions in revenue, yet the student-athletes responsible for filling stadiums, selling jerseys, and driving TV ratings have been restricted from receiving a direct share of that wealth.

But the tide is turning.

In the wake of the NIL (Name, Image, and Likeness) era, a more dramatic shift is underway: revenue sharing between universities and student-athletes. As legal pressure, athlete advocacy, and public opinion mount, the traditional NCAA model is facing a complete overhaul.

So, what does this new wave of revenue sharing mean for student-athletes?

In this article, we’ll explore:

• What revenue sharing in college sports actually means
• Why it’s happening now
• How it could reshape college athletics
• What athletes should do to prepare financially and strategically
• 
  

1. What Is Revenue Sharing in College Sports?

Revenue sharing means that colleges and universities would pay athletes a portion of the money generated through:

• TV broadcasting rights
• Ticket sales
• Sponsorships and advertising
• Merchandising (jerseys, gear, etc.)
• Conference and postseason payouts

Historically, this money has gone to athletic departments, coaches, and schools not the players. But under a revenue-sharing model, student-athletes would receive a direct cut, similar to how professional athletes are paid in leagues like the NFL and NBA.

This is more than NIL. It’s about athletes being compensated as part of the core business model of college sports.

2. Why Is This Happening Now?

Several major forces are pushing college sports toward revenue sharing:

⚖️ Legal Challenges

Ongoing lawsuits including House v. NCAA argue that the NCAA’s restrictions on athlete pay violate antitrust laws. A ruling in favor of the athletes could force the NCAA to create a new payment structure.

💼 Employment Classification

There’s increasing debate about whether student-athletes should be classified as employees. If that happens, athletes would be entitled to wages, benefits, and the ability to unionize.

📈 Explosive Revenue Growth

The Power Five conferences (SEC, Big Ten, etc.) generate billions in media rights deals. With conference realignments and streaming platforms bidding for broadcast rights, the money is growing fast.

💬 Public Opinion

Fans, media, and former athletes are increasingly supportive of the idea that players deserve a fair share of the revenue they help create.

3. What Are the Proposed Models?

While revenue sharing is not yet finalized, several models are being discussed:

Fixed Salary or Stipend

Athletes receive a set annual payment based on sport, role, or conference.

Percentage-Based Share

A portion of a school or conference’s media revenue is distributed among athletes potentially with a tiered structure by sport or status.

Employment-Based Compensation

If athletes are classified as employees, they would receive:

• A base salary
• Benefits (healthcare, insurance)
• Collective bargaining rights

Hybrid NIL + Revenue Model

Athletes keep NIL rights but also receive a base compensation from their institution, which creates multiple income streams.

4. Who Will Benefit the Most?

Revenue sharing would impact:

• Football and men’s basketball players first (due to revenue generated)
• Athletes at Power Five schools with major media deals
• Top talent who previously left early for pro leagues for financial reasons

However, there is growing advocacy for equitable models that also support:

• Women’s sports
• Non-revenue sports (track, gymnastics, baseball, etc.)
• Walk-ons and bench players

How compensation is structured will matter greatly.

5. What Does This Mean for NIL?

NIL is not going away. Instead, revenue sharing will add a new layer of compensation for athletes.

Key differences:

• NIL: Based on an athlete’s personal brand and marketability
• Revenue sharing: Based on team participation and revenue contribution

The combination of the two could lead to: 

• Higher total earnings for athletes
• More financial disparity between schools and sports
• A need for stronger financial planning and education

6. Financial Implications for Athletes

With more money comes more complexity. Here’s what athletes need to know:

Increased Tax Obligations

Revenue sharing may trigger W-2 or 1099 income, depending on employment classification. Athletes will need to:

• File annual and possibly quarterly taxes
• Understand tax brackets and withholding
• Plan for federal and state income tax

Business & Financial Planning

Student-athletes will need:

• Financial advisors to manage cash flow, budgeting, and investments
• Tax professionals for compliance and deductions
• Legal guidance on contracts, employment terms, and collective agreements

Opportunities for Long-Term Wealth

With proper guidance, athletes can:

• Open retirement accounts (Roth IRAs, SEP IRAs)
• Invest in real estate or long-term portfolios
• Build generational wealth early

7. Risks and Challenges

With opportunity also comes risk. Athletes and schools should be prepared for:

Uneven Access

Athletes at Power Five schools may benefit more, widening the financial gap between programs.

Pressure to Perform

More money may increase expectations and stress on athletes.

Loss of Amateur Status

Becoming “employees” may change scholarship models, NCAA rules, or athlete responsibilities.

Regulatory Complexity

Schools must navigate employment law, Title IX, and NCAA compliance under evolving legal standards.

8. What Should Athletes Be Doing Now?

Whether revenue sharing is fully implemented in 1 year or 5, here’s how athletes can prepare now:

Get Financially Educated

Start learning about taxes, budgeting, credit, and investing. Financial education is the foundation of wealth.

Build a Trusted Team

Even student-athletes need a solid financial team:

• Financial advisor
• CPA or tax professional
• Legal support (especially for NIL or revenue contracts)

Treat Your Career Like a Business

You are the CEO of your brand and future. Build systems, create goals, and make decisions with long-term success in mind.

Advocate for Yourself

As revenue models change, athletes should have a seat at the table, whether through unionization, collectives, or leadership councils.

Conclusion: A New Era for College Athletes

Revenue sharing represents the next major transformation in college athletics. No longer just scholarship recipients or brand ambassadors, student-athletes are becoming key stakeholders in a multi-billion-dollar industry.

With more income, more responsibility, and more opportunity on the horizon, athletes must be strategic, proactive, and financially smart. Want to prepare for the future of athlete compensation? Let’s talk.

We help athletes build financial game plans that go beyond the game and secure their future.