This summer, Senior District Judge Claudia Wilken approved a massive $2.8 billion settlement in the House v. National Collegiate Athletic Association (NCAA) case. This moment marks a new beginning for college athletics as we know it. For decades, the NCAA kept a firm grip on athlete compensation, but this settlement flipped the script, allowing schools to now directly share their revenue with student-athletes.
Starting in 2025–26, Division I programs, including the Institute, will be allowed to share up to $20.5 million per year with athletes. That number isn’t fixed either; it will increase by roughly 4% annually, meaning schools could be distributing close to $30 million by the mid-2030s. It’s also important to know that this revenue-sharing allocation is in addition to scholarships, cost-of-attendance stipends and a wide array of other benefits student-athletes already receive. On top of that, the settlement will also compensate former athletes who were denied name, image and likeness opportunities in the past.
The financial stakes of this development are huge, and this has not been wholly positive for every Division I student-athlete. Nationwide, “Power Four” schools will face pressure to pay athletes at the maximum cap, while smaller schools may struggle to keep pace. Programs with stronger donor bases and media contracts will likely thrive, while others risk falling behind. It’s the first real step toward student-athletes being recognized as central contributors to the multi-billion-dollar industry that is American college athletics.
So what does this mean for Tech specifically? The Institute’s athletics budget has been on the rise: $127.9 million in FY24, which is up from $94.9 million just two years earlier. Nearly $49 million of that already goes to personnel, plus big investments in recruiting, travel and scholarships. Revenue is also climbing — football alone brought in about $59 million, more than double from a few years ago while also seeing a prominent surge in fundraising for new facilities and programs. Tech seems poised to handle the $20.5 million cap without straining its budget, but they must remain cautious to stay competitive in the ACC and nationally.
This shakeup affects more than Tech’s budget. The settlement also introduces new roster limits: football is capped at 105 players, track and field at 45, swimming and diving at 30 and cross country at just 17. For Tech, that means fewer walk-ons and tougher competition just to make the team. While some student-athletes will finally see fair compensation, others may lose roster spots altogether.
At the end of the day, this is a historic turning point. Tech leaders, including President Ángel Cabrera, have already said they see it as an opportunity to invest in athletes while maintaining academic excellence. Still, this case marks a new era of college sports that comes with both opportunities and sacrifices across the board.
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