There is an NCAA limit on how much universities can pay athletes under the new revenue-sharing model set to begin in 2025. The NCAA and Power Five conferences have agreed to allow schools to directly compensate athletes, with a cap of approximately 22% of the school's annual athletic revenue. This translates to about $20–23 million per school annually, depending on their revenue from media rights, ticket sales, and sponsorships. This cap will increase incrementally over time.

BYU cap is $20.5M for 2025-2026 signees. 70% of that goes to the football roster. 20% or $4.1M goes to the basketball roster. My guess is AJ got about $1M from BYU. Red Bull, Nike, & other NIL arrangements would make up the rest.

The settlement also ensures that schools cannot circumvent this cap, and compliance will be monitored through audits. While universities are not required to spend the full amount, most Power Five schools are expected to approach the cap to remain competitive in recruiting. Additionally, athletes can still earn money through Name, Image, and Likeness (NIL) deals from third parties, which are separate from this direct compensation model.

Athletes signed in 2024 for the 2025-2026 season would be subject to the new rules. The NCAA settlement agreement, if approved, is set to take effect in the 2025-2026 season. This means that any athletes who are part of college athletic programs during that academic year will fall under the new compensation model, regardless of when they were signed.

While it's close to being approved and schools are functioning as though it is final, the new arrangement is not a completely done deal.

The key events in the approval process were/are:

September 5, 2024: Judge Claudia Wilken initially rejected the preliminary approval of the proposed settlement.

September 26, 2024: The NCAA and plaintiffs submitted a revised settlement agreement addressing the judge's concerns.

October 7, 2024: Judge Wilken granted preliminary approval to the revised settlement.

It's important to note that this is still not the final approval. The settlement process includes several more steps:

October 18, 2024: The process of notifying current and former athletes about the terms and claims procedures begins2.

January 31, 2025: Deadline for athletes to object or opt out of the settlement.

April 7, 2025: A final approval hearing, called a "Fairness Hearing," is scheduled.

If the settlement receives final approval and any potential appeals are resolved, it would go into effect the 2025-2026 school year.