Everything changed on July 1, 2025. If you follow college sports, you probably saw the headlines about the House v. NCAA settlement, but the actual reality on the ground has become a bit of a maze. We’ve moved past the "Wild West" era of booster bags and entered a structured, corporate phase where the phrase nil dollar on up basically defines how much a school can actually keep its roster together.
Honestly, the numbers are staggering. We are looking at a system where schools are now allowed to share up to $20.5 million annually directly with their athletes. But here is the kicker: if a school decides to increase scholarships beyond the current limits, that revenue-sharing cap is reduced dollar-for-dollar.
It’s a zero-sum game.
The $20 Million Threshold and the New Rules
For the 2025-2026 academic year, the "nil dollar on up" trend refers to the escalating floor of what it costs to be competitive. If you aren't hitting that $20 million revenue-sharing cap, you’re basically playing a different sport. Power Conference schools in the SEC and Big Ten are already averaging roster costs near $26 million per team when you combine direct school payments and third-party NIL deals.
The College Sports Commission (CSC) now requires every single third-party NIL contract over $600 to be submitted for approval. This was a massive shift that happened just a few months ago.
Before July 2025, collectives were throwing money around with very little oversight. Now? The CSC acts as a clearinghouse. They are looking for "fair market value." If a local car dealership pays a backup punter $100,000, the CSC is going to raise an eyebrow. This transparency was supposed to slow things down, but instead, it just professionalized the hustle.
🔗 Read more: College Football Top 10: What Most People Get Wrong About the 2026 Rankings
Why the Math is Hard for Smaller Schools
The gap is widening. While Ohio State or Texas A&M might clear $30 million in total athlete compensation, mid-major programs are struggling to find even $2 million.
It's a squeeze.
Think about the "dollar for dollar" reduction rule. If a school wants to add 20 more scholarships to its baseball team to stay competitive under the new roster limits, they have to take that money directly out of the revenue-sharing pool. You can't just "find" more money. Every dollar spent on a scholarship for a bench player is a nil dollar on up that isn't going to your star quarterback.
The Death of the Traditional Collective?
We are seeing a weird evolution of the NIL collective. In 2023, they were the only game in town. Now, they are becoming "in-house" arms of the athletic department.
Kinda weird, right?
💡 You might also like: Cleveland Guardians vs Atlanta Braves Matches: Why This Interleague Rivalry Hits Different
The entities that used to be "third-party" are now basically HR departments. Because of the new reporting requirements, many collectives actually burned through their cash reserves before the July 1 deadline last year just to avoid the new CSC reporting rules. Now, they are starting from scratch in a world where fans are "donation fatigued." People are tired of being asked to buy a $500 brick or a monthly subscription just to keep a wide receiver from transferring to a rival.
- Commercial NIL: Expected to hit $292 million this year.
- Collectives: Still contributing about $205 million, though shrinking.
- Revenue Sharing: The big beast at $1.8 billion.
What Most People Get Wrong About the 2026 Landscape
There's this myth that the "pay-to-play" era is over because it’s regulated. That’s total nonsense. If anything, the price of admission went up.
The "nil dollar on up" mentality means that even the "low-end" starters at major programs are now expecting six-figure guarantees. It isn't just about the superstars anymore. It’s about the offensive line. It's about the depth.
If you aren't paying the 45th guy on your roster a decent wage, someone else will.
The Tax Man Cometh
One thing nobody talked about in 2024 that is a massive headache now: taxes. These kids are 19 years old and receiving $200,000 in "revenue sharing" which is treated as 1091-NEC income. They aren't employees—yet—so they have to handle their own withholdings.
📖 Related: Cincinnati vs Oklahoma State Basketball: What Most People Get Wrong About This Big 12 Grind
We are going to see a lot of "broke" athletes in April when the IRS wants its cut.
Experts like Eswar Prasad have noted that the broader economy—specifically the weakening U.S. dollar—is actually impacting how international student-athletes view these deals. For a player from Europe or Australia, a $50,000 NIL deal is worth significantly less in their home currency than it was two years ago.
Actionable Steps for the 2026 Season
If you’re a fan, a donor, or just trying to make sense of the mess, here is how you should look at the "nil dollar on up" situation:
- Watch the Roster Limits: Schools are moving away from "walk-ons." If a player isn't on scholarship or getting a piece of the revenue share, they likely won't be on the team. The days of the "Rudy" story are basically dead.
- Follow the CSC Transparency Reports: These are now public. You can see exactly what the "average" value is for a position. If your school is paying way below the average, expect a mass exodus in the transfer portal.
- Understand the Scholarship Trade-off: Every time your school announces "more opportunities" for non-revenue sports like track or tennis, it usually means there is less money for the football and basketball NIL pools. It's a brutal reality of the new math.
The market has finally set a price. For the top-tier programs, that price is a minimum of $20 million just to walk into the stadium. As the 2025-2026 season progresses, the schools that haven't mastered the "dollar for dollar" balance of scholarships vs. cash are going to find themselves at the bottom of the standings very quickly.