House Settlement Reached – Key Changes for Baylor Athletics

[Rhoades, Mack]

Baylor Athletics Staff,

Today a settlement was reached in the House v. NCAA case, officially permitting revenue sharing with our student-athletes up to a reported estimate of $20.5 million (22% of the power four’s average annual revenues). For several months, we have proactively monitored this case to anticipate potential outcomes.

Like our Division I peers across the country, this case has required us to carefully evaluate the distribution of funds amongst our sport programs, signifying a major change in college athletics. What this means for Baylor Athletics is outlined below:


  *   Revenue Sharing and Licensing Agreements: Beginning the Fall 2025 academic year, every Baylor student-athlete will be offered an NIL licensing agreement for institutional use of their name, image, and likeness. We will offer two levels of NIL licensing agreements: (1) A base participatory agreement of $250 annually, or (2) An enhanced agreement offering varying levels of compensation based on individual and team valuation metrics. Based on overall revenue generation and broadcast viewership data, our initial revenue share model designates football, men’s and women’s basketball, baseball, softball, and volleyball as the sport programs who will benefit from the enhanced NIL licensing agreement. Our approach is consistent with strategies implemented by numerous Big 12 institutions and other programs across the country, as reported by the media.


  *   Roster Limits: Additionally, the settlement introduces roster limits for all sports programs, replacing previous scholarship limits – a change that over time will impact program roster sizes and individual opportunities nationwide. In most cases, this will result in a reduction in the number of student-athletes on rosters. Along with those limits, the settlement also permits—at the discretion of each institution—the option to "grandfather" in current student-athletes or to immediately enact new roster limits. Baylor intends to transition to new roster limits and will actively work to identify potential “designated student-athletes,” a new classification outlined in the settlement. Additional information on this designation will be shared as it becomes available.


  *   External NIL: The settlement does not impact a student-athlete’s ability to earn money through third-party deals with brands and sponsors which are not with an associated entity or individual. These individual NIL activities are completely separate from institutional revenue sharing. Any third-party NIL deal valued at $600 or more in total compensation from a single payor is required to be submitted to a clearinghouse operated by Deloitte, to ensure such third-party deals demonstrate (1) a legitimate business purpose and (2) a fair range of compensation.

In addition to the above House updates, we have notified student-athletes of the discontinuation of the Baylor Built Academic Incentive Program (BBAI), effective immediately. The Spring 2025 academic semester will be the final opportunity to earn the incentive through this program. This decision was made after careful consideration and evaluation of our current strategies and future objectives related to financial impacts across all NCAA Division I athletics programs. This decision is in line with the strategic direction taken by the majority of our peers.

Mack

____________________________________________________________
Mack B. Rhoades, IV | Vice President and Director for Intercollegiate Athletics
Department of Intercollegiate Athletics | Baylor University
O:  254-710-1222 | F:  254-710-4420
[Image]<http://www.baylorbears.com/>



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