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A growing number of states have passed legislation allowing athletes to receive compensation for their names, images or likenesses. Under these laws, student-athletes could earn money for endorsements, advertising and events such as autograph signings.
The NCAA announced this summer that college athletes can sign contracts to get paid for the use of their name, image or likeness. They can get paid for autographs, promoting products, leading camps and for personal appearances.
In response to a federal judge's mandate, the NCAA changed its rules in August 2020 to allow schools to pay each of their athletes up to $5,980 per year as a reward for academic performance.
The NCAA still does not allow colleges and universities to pay athletes like professional sports leagues pay their players\u2014with salaries and benefits\u2014but the new changes will allow college athletes to solicit endorsement deals, sell their own merchandise, and make money off of their social media accounts.
More than $1.5 billion in potential earnings Division I players have been earning $471 on average, according to Opendorse data, while some of these NCAA athletes earned more money just in the month of July than their yearly tuition.
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The NCAA still prevents universities and colleges from paying college athletes, unlike in professional sports leagues (with consistent salaries and benefits). However, this ruling will enable student athletes to seek endorsements, sell merchandise, and use their social media accounts to make money.
Athletic Scholarships as Contracts An athletic scholarship is basically a yearly contract because it expires at the end of each school year and must be renewed.
The term \u201cprofessional sports contract\u201d means an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization, or as a professional athlete.

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