Here's the FAQ page linked in RG's letter:
Q: What is “The Settlement”?
A: The Settlement is a $2.8 billion antitrust class action settlement that resolves
In re College Athlete NIL Litigation (a consolidation of
House v. National Collegiate Athletic Association and
Carter v. National Collegiate Athletic Association) and
Hubbard v. National Collegiate Athletic Association as approved by the United States District Court for the Northern District of California. Although the settlement officially includes all three antitrust suits brought against the NCAA, it’s commonly referred to as just “The
House Case”
Q: What does the Settlement mean for CU?
A: The Settlement enables athletic departments, like CU’s, to share its revenue with student-athletes, via direct compensation, in exchange for a license to use their Name, Image, and Likeness (NIL) rights. The Settlement has created a cap of $20.5 million per university each year that can be paid to student-athletes. These funds are separate from, and in addition to, the benefits CU already provides student-athletes like tuition, meals, room & board, health care, etc.
Q: Why is the annual compensation cap set at $20.5 million?
A: $20.5 million is 22% of the average revenue generated by all institutions (plus the University of Notre Dame) within the ‘Power Five’ conferences - the ACC, Big Ten, Big 12, Pac-12 and SEC. This cap is set to increase by 4% each school year and will be recalibrated every three years. It’s up to each school to determine how much to spend within the cap and how to divide up their cap dollars amongst sport programs.
Q: Does every NCAA school have to participate in revenue sharing?
A: Only institutions named as defendant conferences (ACC, Big Ten, Big 12, Pac-12 and SEC) in the Settlement are required to participate in revenue sharing. Participation is permissive for all other conferences
.
Q: Will CU share its revenue up to the $20.5 million cap?
A: Yes, it is our intention to distribute the maximum allotted compensation to student-athletes each year.
Q: Is this additional money coming from the University or student tuition?
A: Revenue sharing funds will be paid out of the Department of Athletics budget and not from University tuition or state/federal funding. This is why support from CU fans is more vital than ever to ensuring our student-athletes have the resources needed to succeed.
Q: How will revenue be distributed?
A: The Settlement does not dictate how an institution must disburse revenue sharing funds, so methodology and execution will vary between schools. CU Athletics will use a revenue-based, unbiased and nondiscriminatory model in which the programs that generate the most revenue will receive the majority of the revenue-sharing. Based on this budget, the sport program determines the amount of compensation each student-athlete receives. The student-athlete will, then, be offered a licensing agreement.
Q: Will every CU student-athlete sign a licensing agreement?
A: The compensation amount and term length will vary, but every CU student-athlete, regardless of sport, will have an opportunity to participate in revenue-sharing via an institutional licensing agreement.
Q: Does this mean student-athletes are now CU employees and can be cut if they don’t perform?
A: No. A revenue sharing licensing agreement is not tied to athletic performance or results. It enables the Athletic Department to use a student-athlete’s NIL rights to market and promote individual sports, the Athletic Department, and the University. Student-athletes will still be required to remain academically and athletically eligible in order to compete.
Q: How will CU Athletics use the student-athletes’ NIL Rights?
A: CU Athletics will compensate student-athletes for a license to include their name, image and likeness in all of the marketing, promotion and publicity activities our fans are used to. This includes team posters, social media features, in-venue videos as well as a number of appearances such as Buff Belles, the Pearl Street Stampede, and team autograph sessions.
Q: How does revenue sharing compensation impact athletic scholarships?
A: Student-athletes will continue to sign institutional Financial Aid Agreements, at an amount determined by the sport program. This aid covers things like tuition, fees, room and board. Financial Aid Agreements exist separately from, and are governed by different rules than, the new licensing agreements that student-athletes will sign.
Q: Is CU cutting any sports?
A: No.
Q: Is CU cutting scholarships for any sports? If so, which sports and why?
A: The House settlement will replace scholarship limits with roster limits. We have been evaluating our rosters in order to best meet the roster limit requirements outlined in the agreement. Some of our Olympic sports will be impacted with roster reductions. All decisions regarding roster sizes are dictated by Title IX requirements.
Q: Will there be “Walk-Ons” anymore?
A: Some CU sport programs will be able to have non-scholarship student-athletes participating on their team if they are within that sport’s roster limit.
Q: What about former student-athletes?
A: A significant piece of the Settlement is back damages to be paid by the NCAA to former student-athletes who competed from 2016-2024. To learn more about this part of the Settlement, visit
collegeathletecompensation.com
Q: Can student-athletes still engage in NIL deals on their own?
A: Yes. In addition to a student-athlete’s institutional licensing agreement, they are still able to engage in individual NIL deals with third parties. These deals are now subject to review and approval through a national clearinghouse, which requires the third party to disclose their association to the University, prove a valid business purpose and provide payment within a fair range of compensation. A student-athlete could face eligibility ramifications for accepting a deal that is not approved by the Clearinghouse.
Q: When a student-athlete has their own NIL deal, does that count towards CU’s revenue sharing cap?
A: No. When a student-athlete earns compensation through an individual NIL deal with a third party, these funds are considered ‘above cap’ and do not impact the student-athlete’s licensing agreement with CU nor count towards CU’s ‘spending’ within the $20.5 million annual limit.
Q: What’s happening to Collectives?
A: Collectives (booster groups that support a specific institution through engaging in NIL deals only with those student-athletes) may still exist throughout the country. Just like any third party, though, the deals a Collective offers to student-athletes will be subject to scrutiny via national clearinghouse. As part of the clearinghouse process, a Collective will have to disclose their association to the University and prove that their entity has a valid business purpose (beyond just student-athlete NIL deals).
Here at CU, in order to increase efficiency and oversight, we have brought the responsibilities previously undertaken by Collectives in-house.
Q: How do businesses get involved with CU student-athletes?
A: The NIL Office within CU Athletics educates third parties, operates the
Buffs NIL Exchange and helps facilitate NIL deals between businesses and student-athletes. For more information or if you’d like to get involved, email:
BuffsNIL@colorado.edu
