Make Me Smart A new era of athlete pay in the U.S.
Aug 12, 2025
Joining the discussion is Kennington Lloyd Smith III, a seasoned sports journalist with a rich history in college athletics. He dives deep into the transformative shift in athlete pay, sparked by a recent settlement allowing direct payments to college athletes. Kennington uncovers the financial strains on athletic departments and the ongoing push for equitable pay in the WNBA, contrasting it with the NBA's revenue distribution. The conversation also touches on the growing influence of private equity in sports, hinting at potential game-changing investment opportunities.
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Revenue Follows Popular Sports
- Schools will distribute most of the $20.5M toward football and men's basketball based on program popularity.
- Athletic departments face downsizing and layoffs as they scramble to reallocate budgets to cover payouts.
Watch For Budget Moves And Fees
- Expect athletic departments to cut staff or raise targeted fees to cover athlete payments.
- Watch university budget moves like ticket surcharges and layoffs as signals of how schools will adapt.
Payouts Depend On School Revenue
- The $20.5M must come from each school's existing revenue streams like TV deals, tickets, and merchandise.
- Wealthier conferences with huge TV contracts will manage this far easier than smaller programs.