WICHITA, Kan. (KSNW) — We are getting a better idea of how much a proposed NCAA settlement could cost Wichita State University. WSU Athletic Director Kevin Saal says the school would need $7 million more annually.
Last month, a judge gave preliminary approval to a $2.8 billion settlement in House vs. the NCAA. It would require colleges nationwide to pay current and former student-athletes dating back to 2016 for using their name, image and likeness (NIL).
The decision would affect all college sports, but the main financial impact is expected to be on men’s Division I football and basketball.
In an open letter to Shocker fans on Wednesday, Saal said WSU is in better shape than many other colleges.
“Because we do not compete in football, we are uniquely positioned to resource our programs at a more advanced level than our competitive peers, regionally and nationally,” he said.
He listed three critical elements of the settlement:
- Retroactive NIL payments. For the next 10 years, the NCAA and membership conferences would pay $2.78 billion in backpay to student-athletes from 2016-present. To pay for it, the NCAA would reduce the amount it sends to member conferences and schools. Saal says the loss to Shocker Athletics would be $650,000 annually for the next 10 years.
- Revenue sharing. Starting in the fall of 2025, schools would share up to 22% of the average revenue made on things like ticket sales, media rights, and advertisements. Saal estimates this would cost WSU a minimum of $2.6 million yearly.
- Elimination of scholarship limitations. The settlement would eliminate the cap on student-athlete scholarships in favor of new roster limits. Each institution would scholarship as many student-athletes as these new roster limits allow. Saal says this could double Shocker Athletics’ scholarship expenses. However, in recent months, Shocker Athletics has coordinated with its head coaches to determine the right-sized solution. Saal estimates the additional roster expense to be approximately $2.5 million annually.
Saal says WSU will begin sharing revenue and establishing right-sized rost maximums in 2025.
“These steps are necessary to recruit and develop championship-level talent,” he said.
Saal also said Shocker Athletics can grow in the face of the challenges.
“The addition of women’s bowling to our department is just the beginning, and we are off to a great start,” he said. “As we adapt to the evolving landscape of intercollegiate athletics, we will continue to prioritize strengthening our existing sports programs to ensure they remain competitive at the highest level.”
“To compete at the level of our collective expectations, Shocker Athletics, Wichita State University, and our community must develop $7 million in new recurring annual funding,” he continued.
Saal said Shocker Athletics has spent over two years looking for new revenue streams. It has supplemented athletics department money through:
- Reduced-price season tickets/concessions,
- Elevated premium experiences, such as floor-level premium seating and hospitality in The Shocker Way Mezzanine,
- New lower-level seating configuration and options at Eck Stadium,
- Hosting external events, such as The Basketball Tournament and Athletes Unlimited Softball, and
- Elevated philanthropic giving.
Saal said the future success of WSU students depends on Shocker Athletics’ ability to make money through both traditional and innovative methods.
“If you haven’t already, please consider purchasing season tickets in support of our five ticketed sports (women’s basketball, men’s basketball, baseball, softball and volleyball),” he wrote.”These are significant ways you can help!”
Click here to read Saal’s complete letter to Shocker friends and family.
A final approval hearing for the House vs. the NCAA settlement is April 7.