The employee thing is happening next year, definitely not my idea. I don't know all the details either, and I could be wrong on some of this I just read about this topic and look at the IU AD financial reports. Here is how players will get paid next year:
1) NIL: The same thing we've seen since 2021. Players can be paid for their Name, Image, and Likeness (such as commercials or being a spokesperson), but in reality it's donors funneling $ to players for their commitment. Collectives make it easy for donors to pool their $ and get it to players. Key takeaway is this is all donor money.
2) Revenue Share: Starts in 2025, and this money comes straight from the University. Per the results of the player lawsuit, athletic depts now have to share some of their revenue with the players. Athletic dept revenue is media rights, ticket sales, merch, donations, etc. The revenue share is capped at about $22M and while it's not decided by the courts/NCAA/conferences/whoever yet, probably 75% of that will go to football. This is the new dynamic that makes athletes university employees.
Players will get rev share and NIL. Will NIL change? For most Big 10 and SEC schools, I would guess not much. The revenue share is capped, it's the same for Ohio State as it is for IU, and the source for paying revenue share is mostly media rights increases. Since the revenue share doesn't provide an advantage given it's capped, the donors will still be giving to NIL collectives to provide their school an advantage in paying players, just like they do today. Some donors may pull back because they feel revenue share is enough for the players, but most will keep giving because NIL is where schools can get an advantage.
I've only looked at IU's situation. Some schools that may have NIL issues with the rev share kicking in are ones with athletic depts in bad financial shape, such as Washington. UW is going to have trouble paying the rev share, and they may need donors to help pay the rev share, which could reduce donors ability to also contribute to NIL. This could also happen at smaller athletic depts, but I haven't looked at those situations.
IU appears to be in great shape to pay the rev share because the Big 10 gives us enormous media rights that cover the big new $22M rev share expense coming next year. Our athletic dept should also get credit for being well run from a financial standpoint. This means our donors are probably unburdened by rev share and they can keep giving to NIL, and IU also has money to keep investing in all the teams.