Part 7/9:
With increased scrutiny from the IRS projected for 2025, the financial paradigms built around these collectives face potential upheaval, especially regarding their tax-exempt status.
A Potential Shift with Revenue Sharing
Amid growing confusion, a significant change is on the horizon. The NCAA is poised to transition to a revenue-sharing model, wherein funding would come directly from athletic departments rather than outside collectives. Starting in July, athletic departments could distribute more than $20 million annually to athletes, focusing on football players primarily.