NCAA Division I Athletic Scholarships – Traditional Scholarships vs. Revenue Sharing

For decades, Division I athletes have received traditional athletic scholarships — financial aid covering tuition, housing, meals, and sometimes cost-of-attendance stipends. These scholarships are awarded by universities and are regulated by the NCAA, meaning schools control the number of scholarships per sport and the amount each athlete can receive.

But a major shift is underway. With new rules and court rulings recognizing athletes’ economic rights, revenue sharing is emerging as a new model. Instead of (or in addition to) traditional scholarships, athletes could soon receive a direct share of the revenue their sports generate — especially in high-profile programs like football and men’s basketball.

This change reflects a broader movement toward treating college athletes more like professionals, recognizing their role in billion-dollar TV and sponsorship deals. While details are still being debated, schools are preparing for a future where scholarships may be just one piece of a more complex financial package — one that includes both education support and fair compensation for athletes’ contributions on the field.

		NCAA Division I Athletic Scholarships – Traditional Scholarships vs. Revenue Sharing
Category	Traditional Scholarships	Revenue Sharing
Form of Payment	Educational benefits (tuition, room, board)	Direct cash payments
Recipient	School receives payment for student’s expenses	Student-athlete receives money
Usage	Must be used for educational costs	Can be used for anything
Tax Implications	Generally not taxable to student	Likely taxable income
Amount Limits	Limited by cost of attendance	Limited by revenue-sharing cap ($20.5M/school)
Funded By	Total University Budget	Athletic Department Budget

Types of Scholarships

With revenue sharing, the landscape of NCAA DI athletic scholarships is changing dramatically:

• Roster limits replace scholarship limits — schools no longer have to tie scholarships to a fixed number per sport.

• Fewer total roster spots overall — an estimated 4,000–5,000 roster spots may be lost across Division I.

• Full scholarships are optional — schools can give every athlete a full scholarship, but they are not required to.

• Revenue allocation — schools can use $2.5 million of their $20.5 million revenue share budget to fund athletic scholarships.

Your Financial Package Now Depends On:

• Your sport’s priority in the athletic department budget

• How much of the $20.5 million your school allocates to your sport

• Your individual value to the program