Starting today, California’s top universities, including UC Berkeley and UCLA, can directly pay their athletes, marking a significant change in college sports. This shift stems from a settlement in a class-action lawsuit, allowing schools to distribute up to $20.5 million annually to athletes. Most of this money will go to football players, with some allocated to men’s and women’s basketball players. According to CalMatters, some athletes at UC Berkeley could earn approximately $200,000 per year.
The payments, which blur the line between amateur and professional sports, may involve taxpayer money. Public universities like UC Berkeley and UCLA could use state or institutional funds to support their athletic budgets. Currently, taxpayer dollars already account for about 30% of UC Berkeley’s athletic budget. These payments are in addition to scholarships and earnings from “name, image, and likeness” (NIL) deals, which have been allowed since 2021.
UC Berkeley plans to distribute $12 million to football players, $3 million to men’s basketball players, and $1 million to women’s basketball players. However, Sports Illustrated reports that the exact distribution model is still being finalized. While some colleges may struggle to meet the $20.5 million cap, others, like Cal State Bakersfield, have opted into the settlement despite lacking revenue to share.
The settlement also mandates the NCAA to distribute $2.8 billion to former athletes who were previously unable to earn compensation. However, this payout plan faces legal challenges, particularly from female athletes citing Title IX violations. Despite the uncertainty, the settlement represents a new era in college athletics, with schools like UC Berkeley committed to supporting their athletes through increased revenue streams and donor engagement.
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