Really sucks for the 20-25 guys on every FBS roster. The trickle down effect this is going to have on FBS rosters is immense. P2/P4 walk ons becoming scholarship players for the G5 and current G5 scholarship players become FCS/D2 players.
Just another step in the dropping of all pretense of these being "college" athletics as an amateur part of the college experience.
What we are seeing, especially in the P2/P4 level is a professionalization of the game. It will be 18 year old athletes going to a city where there is a university to play football (or basketball) with no expectation of them being anything more than nominally a student. Those who don't perform to a high level will be out the door. Those who weren't good enough out of high school to be offered a paid position and went to FCS/D2 will be recruited in to replace them.
It's going to be an interesting next couple of decades in the sport. Schools are seeing stars in their eyes with media revenue figures in excess of $40-100 million per year. The model will work for a limited number of schools but first the G5 schools then the non-B2 conference schools will be hit.
In addition to existing expenses including coaching, travel, recruiting, support for S&C, nutrition, academic support, etc. now they are looking at players salaries for a full roster plus medical, etc.
What happens when they start seeing this relationship turn into long term expenses for those athletes who suffered permanent physical harm, millions paid out for guys with bad knees and shoulders, not even touching on the CTE issue.
I don't think it will be long before we start seeing schools decide the numbers don't make sense and wanting to move back to an older version of the model. CSU already subsidizes the athletic program.
Reading their current year budget they have total athletic expenses of over $59 million and revenues of about $48 million leaving a deficit of $11 million coming out of general budget funds. What they don't break out is that over half of that $48 million in revenue is student fees. The closest figure I could find was about $24.5 million in student fees for 2017-18 of $24.5 million.
https://www.budgets.colostate.edu/Forms/OperatingBudgetSummaries/FY24_Operating_Budget_Summary.pdf
They aren't going to be getting B1G or SEC payouts or even B12/ACC payouts but all of the sudden they are going to be paying an entire roster of players for football and basketball.
It will also only be a short time until we see the lawsuits from athletes in women's sports demanding to be compensated based on title IX considerations.
It is simply going to be impossible for a lot of schools to justify this kind of money for something that is now further from their academic and research mission. I could even see schools that are in the higher revenue group like a Stanford and Cal deciding that it isn't worth it and realizing that not being part of the top tier professional model hasn't hurt the Ivy League schools.