Schools Can Now Pay Athletes Directly

Starting July 1, 2025, each Division I school can pay up to $20.5 million/year directly to athletes, rising to $33 million/year by 2034.

1. Scholarship Limits Removed, Roster Caps Added

   • Instead of each sport having a set number of scholarships (e.g., 85 for football), schools now have total roster caps (e.g., max 105 football players—scholarship or walk-on).

   • This gives schools flexibility in how they distribute aid but limits how many athletes they can carry on a team.

Fewer Opportunities for Athletes

To stay within roster and budget limits, many schools are cutting back on total participants, especially in:

• Olympic/non-revenue sports (e.g., swimming, tennis, wrestling)

• Walk-ons (athletes who aren’t on scholarship but still compete)

Why?

• Budget pressure: That $20–33M pool is mostly going to athletes in revenue sports (football, men’s basketball).

• Roster cap pressure: To stay under new caps, schools are dropping “extra” athletes (especially walk-ons or low-profile sports).

• Legal liability: Schools are trying to limit exposure by cutting costs and complexity.

The Net Effect

• More money for top athletes in key sports

• Fewer roster spots overall

• Less access for walk-ons and Olympic sport athletes

• Potential cuts to entire teams at smaller or budget-strapped schools

Tips for Athletes & Families

1. Focus on high-value skills — Coaches may prioritize recruits who can help produce revenue

2. Research roster limits — Every campus has different caps and budgets—ask schools about their incoming class sizes.

3. Explore alternatives — Consider Division II, III, or NAIA programs where roster pressures are less intense.

4. Understand NIL and Title IX dynamics — Know how schools are allocating NIL and scholarship funds across men’s and women’s teams.

Bottom Line

Even though the new rules allow schools to pay more and eliminate scholarship caps, the roster caps and financial pressure mean that many schools are cutting players and even eliminating some programs. So for many high school athletes—especially those in less-prominent sports—this could mean fewer chances to compete at the college level.