The NCAA Division I Board of Directors on Monday proposed deleting 153 longstanding rules from its handbook, a move that will allow schools to share financial benefits directly with players — an expected step towards a new era of amateurism in college athletics, but one that remains contingent upon the approval of the House settlement.
NCAA board members met for about four hours on Monday and emerged with nine major proposed legislative changes, including permission for schools to provide direct financial payments to players, including for use of their NIL. NCAA leaders are aiming to reshape the organization’s role and are poised to effectuate sweeping changes by July 1 if the settlement is approved. Schools have until June 15 to decide whether to opt to provide benefits that would be permissible under the settlement for the coming academic year.
Proposed legislation also includes sport-specific roster limits and allowing full scholarships to all student-athletes on a declared roster — a move the NCAA said will double the scholarships available in women’s sports.
The proposed changes would also align with the expected House settlement in that it would allow Power 4 schools and others who choose to offer settlement-related benefits to provide up to $20.5 million in direct financial benefits to players. (Not all Division I schools will choose to operate in the new system enabled by the settlement, as the Ivy League has chosen to opt out and continue to operate under the current structure.)
The new NIL clearinghouse and enforcement arm that aims to coexist with expected settlement terms was also included, along with rules “intended to bring clarity and stability to the NIL environment for all Division I schools.” To prevent schools from trying to circumvent the $20.5 million cap, the NCAA has proposed rules to help add stability and accountability. All players will be required to disclose their NIL agreements if they are greater or equal to $600. Agreements between the player and a third party outside of their school will be reviewed.
The board also approved new rules that would create technology platforms for the schools to monitor their payments to players and for the athletes to report their third-party NIL agreements. There are also steps the players can take if an NIL agreement is considered “outside of the range of compensation” developed by the external, independent clearinghouse.
An enforcement group that will be created and operated by the defendant conferences will aim to “provide oversight for rules relating to the terms of the settlement, including third-party NIL and the annual benefits cap,” according to the NCAA.
Players will still be allowed to hire agents for NIL purposes, but the NCAA will still use certain eligibility rules that have been used to “distinguish Division I athletics from professional sports,” according to a document that summarizes the legislative changes. For the athletes to receive these benefits, the NCAA will require them to be enrolled full-time, meet Division I progress-toward-degree requirements and earn the benefits during their five-year eligibility period.
