Editor’s note (October 2026): This post describes a December 2023 NCAA proposal. On June 6, 2025 the court granted final approval of the House v. NCAA settlement, which lets participating Division I schools provide direct financial benefits to athletes up to an annual cap (about $20.5 million per school in the first year), and Division I athletes now report third-party NIL deals of $600 or more through NIL Go, the College Sports Commission’s review platform.
On December 5, 2023, NCAA President Charlie Baker sent a groundbreaking proposal to NCAA Division I school members outlining proposed changes that would allow schools to pay athletes through trust fund and Name, Image, and Likeness (NIL) agreements. The initiative proposed a significant shift in collegiate athletics and aimed to redefine the financial dynamics and empowerment of student-athletes.
NCAA Proposal to Pay Athletes: Trust Fund and NIL Agreements
Understanding the Proposal
The NCAA’s plan involves setting up an enhanced educational trust fund, allowing schools to directly compensate athletes. This trust fund would require a minimum investment of $30,000 per year for each athlete and adhere to Title IX rules, ensuring equitable distribution among male and female athletes. This move, positioned alongside existing NIL rights, signals a new era of athlete empowerment.
Implications for Athletes
For student-athletes, this proposal opens doors to unprecedented financial opportunities. It promises a more direct benefit from their athletic contributions, potentially reducing the financial burdens many face. However, it also raises concerns about unequal opportunities across different schools and sports, and the potential for heightened pressure and exploitation.
Impact on Colleges and Universities
Colleges and universities would have faced new financial and operational challenges under NCAA President Charlie Baker’s proposal. Managing the trust funds and ensuring Title IX compliance will require careful planning. Additionally, this could significantly alter the competitive landscape in college sports, with financial capabilities becoming a more prominent factor in attracting talent.
Interplay with NIL Landscape
The proposal would have added to the existing NIL landscape. It adds another layer to how athletes can be compensated, potentially leading to complex legal and regulatory challenges. The relationship between direct payments and NIL agreements will need careful navigation to ensure fairness and compliance.
Looking Ahead: Future of College Athletics
This change could herald a new chapter in college athletics, potentially leading to more autonomy for athletes and reshaping recruitment and talent management strategies in collegiate sports.
Navigating the NCAA’s New Subdivision and Trust Fund for Student-Athletes
A lawyer can assist student-athletes in navigating the rules that now govern athlete compensation, including the House v. NCAA settlement framework. They can provide guidance on compliance with Title IX regulations, help understand the implications of the trust fund and NIL agreements, and ensure athletes’ rights are protected. Additionally, lawyers can assist in contract negotiations and advise on the legal aspects of any NIL licensing agreements, ensuring fair and compliant deals for student-athletes. This legal support helps athletes weigh the benefits and risks of the compensation rules in effect today.
The NCAA’s proposal marked a notable moment in the debate over how athletes are compensated and highlighted the evolving nature of athlete rights. Because the rules have changed since this post was published, athletes and schools should confirm current requirements with the school’s compliance office.
Frequently Asked Questions
What was the NCAA’s December 2023 proposal to pay athletes?
As of December 2023, NCAA President Charlie Baker proposed letting Division I schools pay athletes directly through an enhanced educational trust fund. The proposal called for a minimum of $30,000 per athlete per year and compliance with Title IX. It was a proposal at that time, not an adopted rule.
How would the NCAA trust fund work with NIL agreements?
Under the December 2023 proposal, the trust fund would add to existing NIL rights rather than replace them. Athletes could receive direct payments from schools while continuing to earn NIL income. The relationship between the two was expected to raise legal and compliance questions.
Did the NCAA trust fund proposal require Title IX compliance?
Yes. As reported in December 2023, trust fund payments would have to follow Title IX rules so that male and female athletes are treated equitably. Schools would need careful planning to manage the funds and meet that requirement.
How can a lawyer help a college athlete with trust fund and NIL agreements?
A lawyer can review and negotiate NIL licensing agreements and explain how school payments and NIL deals fit together. Counsel can also advise on compliance questions, including the Title IX issues raised by direct payment structures.
Horgan Law LLC | Omaha, NE
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