In May 2025, the NCAA and the Power Five conferences agreed to a $2.8 billion antitrust settlement that upends how revenue is shared with athletes. After years of lawsuits over amateurism, unpaid labor, and NIL restrictions, the new framework opens the door to direct compensation for players, starting as early as fall 2025. For the University of Minnesota and its Gophers athletic programs, this could mean a strategic reset.
Let’s break down what changed and why it matters.
What happened: From lawsuits to payouts
The $2.8 billion settlement came from the House v. NCAA class-action lawsuit, which argued that former and current college athletes should have been compensated for their use in TV broadcasts, video games, and other commercial ventures. The agreement, finalized in May 2025, not only covers backpay over a 10-year period but also sets up a future revenue-sharing model.
Under this new structure, schools in the ACC, Big Ten, Big 12, SEC, and Pac-12 (yes, the remaining few) will be allowed to share up to 22% of their annual revenue with athletes. That’s a sharp departure from the old “education-based benefits” cap of $5,980 per player.
What it means for Minnesota’s Gophers
Minnesota, as a Big Ten school, will be part of this new era of athlete revenue sharing. That means allocating millions annually to athletes across sports, starting with football and basketball, which generate most of the revenue.
Gophers AD Mark Coyle hasn’t released exact projections, but Big Ten schools stand to distribute an estimated $20 million annually under the 22% revenue share model. With over 700 athletes across 22 varsity sports, decisions on who gets what and how are now front and center.
At the same time, Minnesota will continue to rely on student fees, state subsidies, and donations to keep its broader athletic department afloat. According to Star Tribune reporting, the school ran a $5.3 million athletic deficit in 2023, before this settlement. That gap will likely grow unless the school adjusts its spending, fundraising, or sport offerings.
Why it matters for college sports
College sports, especially at the Big Ten level, move closer to professionalized models. Athletes won’t just earn NIL money — they’ll now get a fixed share of institutional revenue. For players, it’s long-overdue recognition. For schools, it’s a test: can they remain competitive while balancing the books?
For student-athletes, this is a win that goes beyond the paycheck. Revenue sharing creates more security, reduces dependency on volatile NIL markets, and could help level the playing field between programs with deep-pocketed boosters and those that rely more on organic development. It also raises the standard of care and support for athletes as schools will need to treat them more like stakeholders, not just scholarship recipients.
For Minnesota, that test is especially acute. The Gophers aren’t Ohio State or Michigan, with nine-figure donor bases and massive TV draw. They sit mid-tier in Big Ten revenue rankings. That means any miss on coaching hires, recruiting, or ticket sales will cut deeper under the new system. But it also means there’s an opportunity to build smarter: focus on development, culture, and long-term planning.
Meanwhile, schools that spend more on football and men’s basketball are likely to allocate more to those teams, potentially squeezing non-revenue sports. Minnesota has a strong tradition in wrestling, hockey, and women’s sports, which now face uncertain budget paths. Still, if managed well, the new era could lead to a fairer ecosystem, where athletes across sports are treated with more dignity, and where schools are rewarded for thoughtful program-building.
Looking ahead: Strategy and risks
So what does the road forward look like?
Schools like Minnesota will need to rethink their athletic strategies, prioritizing programs that can win and earn consistently. The pressure on coaches, recruiters, and ADs will grow, as competitive salaries now go hand-in-hand with competitive athlete payouts.
We also see more fans and boosters enter the financial picture in new ways. Digital engagement, crowdfunding, and blockchain-based tools evolve fast. For example, some sportsbooks now let fans bet on sports with crypto using decentralized wallets, which is easier than traditional betting and can attract more attention to college sports.. While still outside NCAA regulation, it’s a sign of where money and fan behavior are heading: more frictionless, more global, and harder to track.
Minnesota hasn’t yet signaled plans to embrace digital donor platforms or crypto-adjacent engagement tools. But in this new economy, innovation may be less of a choice and more of a lifeline.
Conclusion
The NCAA settlement marks the beginning of a new financial model in college sports. For Minnesota’s Gophers, it’s an inflection point where tradition meets a need for reinvention. Whether Minnesota can compete and thrive in this shifting landscape depends on how it manages both the money and the mission. One thing’s clear: college sports will never look the same again.