House settlement approves revenue sharing. Here's how Clemson will pay players

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Beginning July 1, Clemson athletes will be paid revenue directly by the school plus third-party income they already earn for use of their name, image and likeness.
U.S. District Judge Claudia Wilken approved the House settlement, which resolves three federal antitrust lawsuits against the NCAA and four power conferences (ACC, Big Ten, Big 12, SEC), on June 6. Her approval will allow schools that opt into the revenue sharing format to begin paying its athletes up to an annual cap estimated at around $20.5 million. That doesn't include NIL pay, which is still allowed.
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This is a huge shift in college sports, which moves closer to a professional model.
Here's what Clemson fans need to know about this new system.
Each school will have a salary cap
There will be a cap of approximately $20.5 million that a school can pay its athletes per academic year. That is 22% of the average revenue from ticket sales, media rights and sponsorships by power conference schools. That cap will increase each year, similar to how pro leagues' salary caps increase.
Schools determine which athletes are paid and how much, as long as the total doesn't exceed the cap. Presumably, schools will spread revenue among several players, similar to a pro team's payroll.
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Players can still have as much NIL money as the market will, but those deals must withstand a new vetting process.
Here's how Clemson could divide revenue
Athletic director Graham Neff did not specify exact percentages to how much revenue sharing will go to each sport, but he said it will distribute money according to revenue each sport produces. This means football will command a stronghold of the estimated cap, which football coach Dabo Swinney hinted at in November.
"We're going to be as good as anybody out there," Swinney said. "Nobody will have more money, so then we will have the opportunity."
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A model was prescribed in the preliminary House settlement: Approximately 75% to football players, 15% to men's basketball, 5% to women's basketball and 5% to other sports. This model for revenue distribution is just a baseline as schools will adjust those percentages based on need and different strategies. Conferences may also set standards for each member school to follow.
Clemson will also fully fund every roster position, increasing scholarships totals from 275 to 425. This will cost around $2.5 million of the $20.5 million, so there will be $18 million available to directly pay players
Football will likely exceed that percentage as it generates the most profit. In fiscal year 2024, Swinney's program brought in around $87.2 million, about 72% of Clemson's revenue across 21 sports, and netted a profit of $19.4 million profit, according to its latest NCAA financial report. This will cause other sports, like its men's basketball program, to receive a lower percentage of the cap.
The scholarship increases will be huge for Clemson's other sports though. Baseball will have 34 instead of the previous 11.7 limit, which will help Clemson's program that has hosted three straight regional tournaments. The extra scholarships may also attract athletes to schools willing to fund them, especially non-revenue sports like baseball, soccer, softball and lacrosse.
Clemson opted in to revenue sharing but every school will not
Athletic department budgets have relied on this revenue for decades, but now they must share a significant portion of it with athletes. Schools will either have to cut expenses, increase revenue or both if they decide to opt in.
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Clemson has prepared for the revenue-sharing era by adding a student athletics fee, increasing season-ticket prices for football games, approving the sale of alcohol at sporting events and hosting non-NCAA sports on campus like the Savannah Bananas in April. It also created a revenue-generating entity, Clemson Ventures, that will produce in-house sales and sponsorship and facilitate NIL deals with business for Clemson athletes
$20.5 million is the floor, not the ceiling due to name, image and likeness
Athletes can earn revenue-shared money from schools and NIL dollars. This is because businesses and third-party collectives fund NIL, while revenue shares will come directly from the school.
This means the richest schools and their boosters can exceed the $20.5 million cap if they want to maximize player pay and build more talented rosters.
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This method may not be feasible in the long run, though, as those same boosters and fans, who donate and buy tickets from athletic departments and fund NIL collectives, could grow tired of paying athletes through two different entities.
How NIL deals will be vetted post-House Settlement
The power conferences are creating a new NIL enforcement arm called the College Sports Commission. Regardless of if a school opts in to making NIL payments, any Division I athlete who has a deal, or deals, worth $600 or more will have to report those deals to a system called "NIL Go."
That data will be evaluated to determine whether the deal has a 'valid business purpose' and is within 'a reasonable range of compensation,' whatever those terms are deemed to mean. This means the NCAA will no longer police revenue sharing or NIL.
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This new process could turn NIL into what it was intended to be: Businesses paying athletes for endorsements rather than fans funding NIL payrolls. Still, it's a difficult standard to define and uphold, meaning lawsuits could come.
Derrian Carter covers Clemson athletics for The Greenville News and the USA TODAY Network. Email him at [e-mail] and follow him on X, formerly known as Twitter, @DerrianCarter00
This article originally appeared on Greenville News: Clemson plan to pay players revenue, NIL after House settlement approved