College Athletes Finally Getting Paid: But Do All Get Equal Compensation?

The NCAA has greenlit a landmark $2.8 billion settlement, and starting Friday, hundreds of thousands of former and current college athletes can begin filing claims. But here’s the catch: not everyone is getting paid the same. The settlement raises a critical question that many athletes want answered: do all college athletes get paid under this agreement?

The Short Answer: Yes and No

Technically, over 400,000 athletes from Division I programs are eligible to receive something. However, the amounts vary dramatically. Football and basketball players from Power Five conferences will see the biggest checks, while Olympic sport athletes might receive only a few hundred dollars or even less.

What’s the Money About?

This historic settlement stems from multiple lawsuits challenging the NCAA’s rules that previously prohibited athletes from earning compensation beyond scholarships. For decades, colleges generated enormous revenues from broadcasting contracts and merchandise using athletes’ performances, yet the athletes themselves received nothing. The $2.8 billion payout compensates athletes retroactively for television and marketing rights dating back to 2016.

Breaking Down the Payouts: Who Gets What?

The settlement divides athletes into three tiers:

Power Five Men’s Football and Basketball Players

• Average payout: $135,000
• Largest individual payouts could reach as high as $1.85 million
• Quarterbacks and high-performing guards typically receive more than defensive positions

Power Five Women’s Basketball Players

• Average payout: $35,000
• Based on performance metrics like additional wins generated per player

All Other Division I Athletes

• Payouts range from hundreds to thousands of dollars
• Athletes from Olympic sports often receive the smallest amounts
• Limited by conference media contract values

The formula considers school revenue, player position or performance statistics, snaps played (football) or minutes logged (basketball), and video game licensing opportunities. A star running back like Saquon Barkley from a high-revenue program such as Penn State will receive substantially more than a volleyball player at the same institution.

When Will Athletes Actually See the Money?

Individual payment amounts won’t be calculated until at least December. Even then, distributions occur annually over a 10-year period, not as lump sums. The settlement still requires final court approval scheduled for April 7, with potential appeals that could extend the timeline further. Athletes have the option to opt out and pursue separate litigation if they believe they deserve more.

The Real Question: Is It Enough?

Critics and supporters disagree on whether these payouts adequately compensate athletes. Title IX advocates worry the distribution favors male-dominated revenue sports. Many athletes may feel their contributions were undervalued and could challenge the settlement amounts.

What Changes Next?

Beyond retroactive payments, the settlement includes a groundbreaking revenue-sharing framework. Starting as early as next summer, roughly 70 colleges could allocate up to $22 million annually directly to athletes—a seismic shift in college sports economics. Over the next decade, athletes could collectively earn $15-20 billion through this direct revenue-sharing model alone, completely transforming how compensation works in higher education athletics.

This settlement represents just the beginning of athletes finally being compensated for their market value.