Why Schools Are Embracing Financial Services For Student-Athletes

College sports are on the brink of a major transformation following the recent announcement of a substantial settlement in a class-action lawsuit against the NCAA. As part of this settlement, it is reported that the NCAA will be paying up to $2.9 billion in name, image and likeness (NIL) back-damages to former college athletes, with individual schools also set to pay up to $22 million annually directly to their athletes.

With this settlement, the longstanding concept of amateurism in college sports will likely be completely dismantled. This shift could effectively create tens of thousands of new employee-athletes in the college sports landscape, posing a significant challenge for many schools that may not be adequately prepared to financially compensate their athletes. Schools that fail to adapt and provide financial support to their athletes risk falling behind as top talent seeks opportunities where they can benefit financially.