Las Cruces, NM – In a significant move for collegiate athletics, New Mexico State University has announced it will officially opt into the House vs. NCAA settlement, allowing for a new multi-billion dollar revenue-sharing agreement, according to acting athletic director Amber Burdge. This announcement came to light on Friday, with Burdge confirming the decision on behalf of the university to the Las Cruces Sun-News.
The deadline for schools nationwide to join the settlement was March 1, 2025. This agreement, which received preliminary approval by Judge Claudia Wilken of the United States District Court for Northern District of California on October 7, 2024, is expected to receive final approval in a hearing set for April 7, 2025. Burdge expressed pride in choosing to opt into the settlement, stating that it represents a step forward for both the institution and its student-athletes. According to her statement, “Their hard work, dedication, and contributions to our university deserve to be recognized and supported in meaningful ways.”
This settlement directs about $2.78 billion in damages over the next decade, primarily addressing the name, image, and likeness (NIL) payment methods for current and former student-athletes, with Former student-athletes set to receive approximately $277 million annually. Group of Five schools like NM State hold around 10% of the NCAA’s total damages, making their participation in the agreement crucial.
As the landscape of NCAA sports continues to change, the settlement lays the framework for current student-athletes by requiring NIL deals valued at $600 or more to be reported to a third-party clearinghouse, which will ensure compliance with prevailing market standards. Additionally, it enforces roster caps, limiting football to 105 players and basketball to 15 players.
The agreed-upon terms will go into effect at the start of the 2025-26 academic year on July 1. Burdge noted that NM State is actively working out how to distribute revenue to its student-athletes, with schools potentially able to pay a maximum of $20.5 million annually. However, she acknowledged that due to the university’s financial constraints, it may not reach that maximum payout.
Burge highlighted that although NM State’s athletics revenue stood at approximately $30 million for the 2021-22 fiscal year and $35 million for 2022-23, the specific amounts that will be allocated to student-athletes remain to be finalized.
The shift brought about by this settlement is poised to overhaul how schools handle NIL-related matters. NM State’s NIL collective, A-Mountain Sports, is now led by new directors who aim to navigate these changes effectively. Moreover, the settlement is a central focus of NM State’s $137 million endowment request aimed at enhancing funding for women’s sports. Concerns have been raised about ensuring that funding for women’s athletics remains robust amid these changes.
As NM State heads into this new era of collegiate athletics, the upcoming months will be crucial in defining how these adjustments will ultimately support and empower student-athletes within the university.
