Florida officials let public universities free up millions to pay student-athletes
TALLAHASSEE, Fla. (AP) — Florida's public universities can free up $22.5 million a year to compensate student-athletes under an emergency rule approved by a state board Wednesday ahead of a landmark legal settlement allowing schools to pay their players through licensing deals.
The sprawling $2.8 billion antitrust settlement, going into effect July 1, allows schools to directly pay their pay their players for the use of their name, image and likeness. It's upending the way college sports have been run for more than a century and has sent universities across the country scrambling for new revenue streams in the hopes of gaining an edge — or at least keeping pace — in the rapidly evolving and highly competitive field of college athletics.
Public universities in Florida, which is home to some of the country's most high-profile college sports teams, will now be able to dip into the funding reserves of campus auxiliary programs like bookstores, food service, student housing and parking in order to cut checks to student-athletes. Under the policy approved Wednesday, the funds can be issued as a transfer or a loan.
'Athletic departments are already currently recruiting student-athletes for fall 2025, and they need clarity on the available funding to retain and recruit the best talent for their rosters,' said Alan Levine, vice chair of the board of governors, which oversees Florida's state universities. 'If the universities cannot react to the settlement immediately, there will be irreparable harm to the athletic programs and to the financial welfare of our institutions.'
Florida's emergency rule goes into effect immediately and will last 90 days, at which point the board of governors can reassess the issue.
Other schools are also taking actions because of deficits in their athletic departments. Last week, University of Kentucky trustees approved a $31 million operating loan for the athletics department as it begins making direct payments to athletes.
Meanwhile, Louisiana is poised to hike taxes on sports betting to pump more than $24 million into athletic departments. And Arkansas this year became the first to waive state income taxes on payments made to athletes by higher education institutions.
___ Kate Payne is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
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