The U.S. Department of Education’s Office of Civil Rights (OCR) has clarified that Title IX regulations will apply to future revenue sharing with college athletes, though specific guidance on the distribution of these funds between men and women athletes has not been provided.
A recent NCAA settlement, which allows for revenue sharing of up to $20 million per year with athletes starting in 2025, does not address Title IX compliance specifics, leaving institutions to navigate these decisions independently. Title IX mandates that educational institutions receiving federal funding must ensure gender equity in sport, which includes equal opportunities, benefits, and financial aid based on sex.
Schools must continue to offer equal athletic opportunities without discriminating in the provision of financial aid, Catherine Lhamon, assistant secretary for OCR, wrote in a statement to ESPN. She also emphasized that the principles of Title IX remain unchanged in the new environment, which allows student athletes to profit from their name, image, and likeness.
OCR did not specify whether the new revenue share would be categorized as financial aid, which traditionally requires proportional distribution based on roster spots. This ambiguity forces athletic departments to make potentially contentious decisions such as distributing revenue equally, which could undermine football recruiting competitiveness, or risk legal challenges by favoring male athletes.
The lack of federal guidance adds complexity, as schools must avoid gender disparities in benefits and opportunities, regardless of the funding source. Universities are exploring different models, including channeling funds through third parties for endorsement deals, but must ensure these practices comply with Title IX requirements.
Schools are awaiting clarity on these regulations, which might only come through future legal rulings or potential legislative action. In the meantime, they must balance compliance with gender equity laws against competitive pressures in the evolving landscape of college athletics revenue sharing.
