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<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#212121">Baylor Athletics Staff,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#212121"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif">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 $<span style="color:black">20.5
million (22% of the power four’s average annual revenues)</span>. For several months, we have proactively monitored this case to anticipate potential outcomes.</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif">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:</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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<li class="MsoNormal" style="mso-list:l0 level1 lfo1"><b><span style="font-size:10.5pt;font-family:"Calibri",sans-serif">Revenue Sharing and Licensing Agreements:</span></b><span style="font-size:10.5pt;font-family:"Calibri",sans-serif"> 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.</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></li></ul>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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<li class="MsoNormal" style="color:black;mso-list:l2 level1 lfo2"><b><span style="font-size:10.5pt;font-family:"Calibri",sans-serif">Roster Limits:</span></b><span style="font-size:10.5pt;font-family:"Calibri",sans-serif"> 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.</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></li></ul>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:black"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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<li class="MsoNormal" style="mso-list:l1 level1 lfo3"><b><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:black">External NIL:</span></b><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:black"> The settlement does not impact a
student-athlete’s ability to earn money through third-party deals with brands and sponsors which
</span><span style="font-size:10.5pt;font-family:"Calibri",sans-serif">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.</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></li></ul>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif">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. <span style="color:#212121">This decision is in line with the strategic direction taken by the majority of our peers.</span></span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> </span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Mack</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">____________________________________________________________</span><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;color:#00361C">Mack B. Rhoades, IV</span></b><span style="font-size:11.0pt;color:#00361C"> </span><span style="font-size:10.0pt;color:black">| Vice President and Director for Intercollegiate Athletics</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black">Department of Intercollegiate Athletics | Baylor University</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black">O: </span><span style="font-size:10.0pt">254-710-1222<span style="color:black"> | F: </span>254-710-4420</span><o:p></o:p></p>
<p class="MsoNormal"><a href="http://www.baylorbears.com/"><span style="font-size:11.0pt;text-decoration:none"><img border="0" width="159" height="44" style="width:1.6583in;height:.4583in" id="Picture_x0020_1" src="cid:E17EB9F9-30D0-499B-B5F2-45A4160B48EA" alt="Image"></span></a><o:p></o:p></p>
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