Dear Bruins,
I wanted to provide an update on the progress of the federal litigation that is expected to result in historic reform to the collegiate athletics model. Recently, the U.S. District Court issued a preliminary approval of the settlement agreement that was reached back in May in the House vs. NCAA class action lawsuits. Final approval is expected in early April 2025.
As it is currently structured, the settlement will provide student-athletes with nearly $3 billion in back-pay and allow schools to participate in sharing approximately $20-22 million in revenue annually with student-athletes. This will reshape the NCAA model in regards to roster size and scholarship limits. As I said in May, we embrace this transformation for what it means for our student-athletes: more resources than ever before.
While it will be months before the settlement is finalized and many questions are yet to be answered, our administration is hard at work planning our strategy for success in this new era. Though he is not officially on the job until January, conversations with UCLA Chancellor-designate Julio Frenk and campus leadership have already begun.
Assuming final approval of the settlement as it currently stands, I anticipate the following changes to be implemented for the 2025-26 academic year:
Universities will be permitted to compensate student-athletes through revenue sharing up to a maximum of 20% of revenue. In order to support and recognize the contributions of our student-athletes and to continue to compete at an elite level, UCLA Athletics intends to maximize revenue sharing opportunities, amounting to $20-22 million per year.
Roster limits will be imposed in each sport, setting a maximum number of student-athletes who can compete with that team in a given year. Conversely, scholarship limits among NCAA sports will be removed. Universities can provide as many scholarships as there are roster spots. We are in the process of meeting with all of our head coaches to determine how this will be implemented at UCLA.
Our goal is to uphold UCLA’s tradition of broad-based excellence. While the level of financial backing for each program may vary, Bruin student-athletes will continue to have the chance to excel athletically and academically, ultimately graduating from the nation’s #1 public institution.
Additionally, all Division I student-athletes who participated on teams from 2016-21 are eligible for Name, Image and Likeness (NIL) backpay amounting to $2.8 billion. The plan to cover the associated costs will result in UCLA receiving $1.5 million less per year from NCAA revenue sharing for the next 10 years.
Though the numbers are not final, the overall budget impact of these changes is expected to be upwards of $25 million per year. Our administration is committed to remaining both competitive and fiscally sustainable, while also continuing to support and develop our student-athletes, who are at the core of everything we do. We will move forward with transparency and will communicate new information as it is finalized.
For the past several years, the one constant in the collegiate athletics landscape has been change. The one constant in Westwood has been the unwavering support of the Bruin community, for which we are incredibly grateful. The most impactful thing you can do is to continue to support our student-athletes by purchasing tickets to games and donating to the Wooden Athletic Fund and Champion of Westwood, the official NIL collective for UCLA Athletics. Together, we will ensure UCLA Athletics continues to attract and develop top talent, compete for championships and graduate exceptional leaders.
Go Bruins!
Martin