UCF student-athletes engaging in sports, symbolizing the new revenue sharing model
The University of Central Florida is set to invest up to $20.5 million annually in student-athlete revenue sharing starting July 1, as a result of a recent settlement that allows schools to compensate athletes directly. This move is part of a broader shift in college athletics following a $2.8 billion NCAA settlement, aimed at enhancing competition and providing new opportunities for student-athletes, particularly women. UCF’s strategic allocation includes funding new scholarships and adapting to upcoming NCAA rule changes.
Orlando, FL – The University of Central Florida (UCF) is set to invest up to $20.5 million annually in student-athlete revenue sharing, beginning on July 1, 2025, as announced by athletic director Terry Mohajir on June 11, 2025. This groundbreaking decision will allow UCF to engage fully in a new revenue-sharing model following a recent settlement that permits schools to compensate student-athletes directly.
The announcement follows federal Judge Claudia Wilken’s approval on June 7 of a $2.8 billion settlement regarding a lawsuit against the NCAA, aimed at addressing lost Name, Image, and Likeness (NIL) compensation for student-athletes from 2016 to 2025. UCF’s participation in this financial distribution aligns it with the evolving landscape of college athletics, particularly as the NCAA prepares to implement new rules that change how financial aid is allocated and how athletes are compensated.
With the launch of the NCAA’s “NIL Go” portal on the same day as UCF’s announcement, schools will begin making direct payments to student-athletes, commencing from July 1. This framework is expected to reshape negotiations and agreements between programs and athletes, fostering a new competitive environment in college sports.
UCF has proactive plans for the allocation of its revenue-sharing funds, with $3 million earmarked for the creation of 74 new scholarships. Notably, the university will dedicate 60% of these scholarships to women’s sports programs to enhance gender equity in athletics. This decision reflects UCF’s commitment to fostering growth and opportunities in women’s sports while adapting to the new financial model.
In terms of financial projections, during its first year in the Big 12 Conference (2023-2024), UCF reported approximately $21 million in revenue. Once the revenue-sharing model takes effect in 2025-26, the university anticipates receiving a full-share payout from the Big 12, estimated to range between $37.8 million to $42.1 million annually. Nevertheless, UCF expects its revenue distributions may face declines over the next decade due to the NCAA settlement’s implications.
The shift to roster limits instead of scholarship limits, announced by NCAA President Charlie Baker, will introduce more flexibility for schools in managing their recruiting and financial strategies. Football rosters will be capped at 105 players, while basketball and baseball rosters will see slight adjustments. These changes are designed to facilitate a more equitable distribution of scholarships across all sports, particularly benefiting women’s programs.
UCF has been preparing for these upcoming changes, with strategies in place to align with other institutions within the Big 12 conference. This preparation is crucial as UCF navigates the adjustments required by the new revenue-sharing model and the broader NCAA guidelines regarding student-athlete compensation.
The university’s commitment to investing significantly in student-athlete revenue sharing marks a substantial shift in collegiate athletics, emphasizing a fairer compensation model. As UCF embarks on this new journey beginning in 2025, the institution aims to not only enhance the experience of its student-athletes but also redefine its competitive stance within the collegiate sports landscape. This initiative represents a pivotal moment for UCF as it continues to evolve within the increasingly challenging world of college athletics.
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