How President Biden’s New Title IX Guidance Could Disrupt College Sports Revenue Sharing Plans

NASHVILLE — Last Thursday night, during a lengthy NCAA meeting, college sports leaders received surprising news that could change how schools pay athletes. The Department of Education’s Office of Civil Rights shared new guidance stating that revenue-sharing payments to athletes must be divided equally between male and female athletes. This follows Title IX, a law ensuring equal benefits for male and female athletes at federally funded universities.

“Well, that was unexpected,” one college leader remarked as they left the meeting.

The guidance arrived just as schools are preparing to start a new revenue-sharing agreement that allows them to distribute at least $20.5 million annually to athletes. Many schools had planned to allocate a large portion of this fund—up to 85%—to football and men’s basketball teams, which may go against the new guidelines.

While the guidance isn’t legally binding, it raises questions about future revenue-sharing plans. With a change in administration on the horizon, the new leadership, led by President-elect Donald Trump, could choose to modify or overturn this guidance. Linda McMahon, known for her ties to the WWE, has been nominated to head the Department of Education.

“It’s tough to predict what will happen next,” said NCAA president Charlie Baker. “Changes in administration take time, and it’s unclear how quickly things will shift.”

In light of the announcement, many athletic departments are re-evaluating their strategies. The guidance outlines that future payments are considered “financial assistance” and must be fairly allocated to all athletes. Schools that fail to do this could face Title IX violations.

As athletes have already signed revenue-sharing agreements, their payments might now be at risk. Most agreements allow schools to manage the athletes’ name, image, and likeness (NIL), while still permitting athletes to partner with external brands.

Josh Whitman, Illinois’ athletic director, emphasized the need for careful examination of the guidance: “We’re in a phase of planning for different outcomes. The landscape is constantly evolving.”

Linda Livingstone, president of Baylor University, stated that further discussions on the implications of this new directive are necessary. Similarly, ACC commissioner Jim Phillips shared that everyone is working to fully understand the new guidelines.

For those concerned about compliance ahead of the upcoming revenue-sharing system, experts have warned about potential lawsuits linked to Title IX. According to leading Title IX attorney Arthur Bryant, schools can’t overlook these regulations, even when using market value to justify payments.

The new guidance comes just weeks before objections can be filed regarding a settlement in which NCAA schools are set to pay former athletes nearly $2.8 billion. While schools can decide to share revenue with athletes, they aren’t required to do so.

A crucial court hearing on this matter is scheduled for April 7, coinciding with the NCAA men’s basketball championship game. As the landscape of college athletics changes, schools must be vigilant in ensuring their practices remain compliant with federal laws.