NIL has changed the world of college sports forever. Now, the House settlement has added its own twists for athletic departments to navigate.
As the Deseret News reported Wednesday, student-athletes at BYU will be compensated in the following five ways:
- The House settlement revenue share
- Third-party NIL
- Scholarships
- Alston payments
- Associated-entity NIL
Here is a brief explainer on each type of compensation.
House settlement revenue share
As a result of the House settlement, college athletes will receive revenue sharing payments.
Under the new revenue sharing model, universities will make direct payments to student-athletes.
“That $20.5 million annual cap on those payments is derived by a formula: The cap equals 22% of the average amount of certain athletic revenues at the top 70 schools.”
Third-party NIL
Like the name “third-party NIL” implies, these are deals made between a student-athlete and a third-party business.
These deals do not involve the university or its collective.
AJ Dybantsa’s deals with Red Bull, Fanatics and Topps are examples of third-party NIL deals.
Scholarships
Student-athletes can still receive scholarships to cover their tuition as well as room and board.
Alston payments
Alston payments get their name from the 2021 U.S. Supreme Court case, National Collegiate Athletic Association v. Alston.
In the case, the “Supreme Court ruled that the NCAA had improperly restricted college athletes from receiving non-cash, academic-related compensation, such as laptops and internships,” the Deseret News previously reported.
As a result, universities can provide each student-athlete up to $5,980 in annual benefits.
These payments are sent each semester.
Associated-entity NIL
Associated-entity NIL deals differ from third-party deals.
These deals are made between a student-athlete and a business that has a tie to that student-athlete’s university.
NIL Go, which was created as part of the House settlement to regulate NIL deals, will review all deals over $600.
A more detailed explanation of the five types of student-athlete compensation and how BYU implements them can be found here.