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Ohio State to begin compensating athletes through direct payments; pending approval of landmark NIL settlement.
Ohio State is on the verge of a major paradigm shift in collegiate athletics by embarking on direct payments to student athletes after July 1, 2025. This will come directly from a preliminary settlement agreement reached in the House v. NCAA Name, Image, and Likeness (NIL) lawsuit. The landmark $2.78 billion settlement will pave the way for direct payments to be taken by varsity sports participating student athletes from all the universities, including Ohio State University.
Ohio State Athletic Director Ross Bjork says direct payments will be calculated on a new "revenue sharing" model, whereby varsity athletes will receive up to 22% of what their respective universities take from athletic department revenue. Direct payments are projected to be greater than $20 million per year, with an automatic increase of at least 4% percent annually, according to the move set in place to balance both men's and women's collegiate athletics.
It is part of a broader change for NCAA athletics that will replace traditional scholarship limits with roster limits. Ohio State will add 91 scholarships available for varsity athletes while decreasing its overall enrollment of student-athletes by 150. The restructuring was designed to redistribute more resources to the individual athlete while preserving the integrity of the Buckeyes' immense athletics programs, which stand at 36 sports.
With final settlement approval anticipated in April, Ohio State is getting ready for a new era in college athletics. It also will undergo changes in its budget to include a revamped ticket plan for football games in 2025. The university will continue to find ways to enhance that commitment financially through more donor opportunities.
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