Impact of Girod’s Settlement: How Paying Student-Athletes Will Affect KU’s Finances

Big changes are happening in college athletics. Recently, a settlement from the House v. NCAA lawsuit was approved. Starting July 1, athletic programs can pay around $20.5 million annually to student-athletes. While schools aren’t required to make these payments, athletic directors warn that to attract talent and secure wins, they better start writing checks.

This shift may force athletic departments to seek funds from their universities’ budgets, traditionally used for education. The University of Kansas (KU) Chancellor Douglas Girod expects some strain on the university’s finances but reassures that funds won’t be redirected from education to athletics.

In 2023, KU’s athletic department contributed approximately $7.6 million for tuition, alongside other significant payments for meals and housing. However, with the new mandate to pay student-athletes, the chances of these funds being transferred will likely decrease. Girod believes that the financial support from the athletic department may no longer suffice as it has in the past.

“They are not going to support us the way they have before,” Girod mentioned. KU might have to make tough decisions, like reducing tuition for student-athletes or absorbing some costs previously covered by the athletics budget.

As the academic year unfolds, KU may struggle to allocate the full $20.5 million to student-athletes. Athletic Director Travis Goff has hinted at working to maximize revenue but has not guaranteed the full cap will be reached.

This trend isn’t limited to KU. At Wichita State University, President Richard Muma recently pushed for a tuition increase to provide necessary funds for athletics. Unlike KU, WSU, which does not have a football program, generates far less revenue but still sees value in athletics for its community and pride. The conversation around funding sport programs is shifting, and universities are being forced to weigh the importance of athletics against educational costs.

Additionally, the House settlement may raise legal questions under Title IX, which mandates equal treatment in education, including athletics. Whether payments to male athletes must equal those for female athletes remains uncertain, leaving many universities to navigate this complex terrain carefully.

As colleges dive into this new financial reality, one thing is clear: the landscape of college sports is changing rapidly, and all eyes are on how universities will adapt to these new financial obligations.

[Read more about the implications of the House settlement](https://www.ncaapublications.com/) and its impact on college athletics.

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