The NCAA’s House Settlement Ushers in a New Age for College Sports, But Some Schools Choose to Sit Out

The NCAA’s historic House settlement took effect Tuesday, allowing athletic programs nationwide to begin paying millions to their athletes—a seismic shift in college sports. While most schools are embracing the change, a small group has opted out for at least a year, wary of legal uncertainties and Title IX implications.

Among the holdouts are the Ivy League, which announced in January that its eight non-scholarship schools would not participate, and the military academies, which are barred from compensating athletes due to federal regulations. Others, like Nebraska-Omaha and Montana, have also chosen to delay, citing the need for clarity before committing.

Nebraska-Omaha expressed concerns over Title IX compliance, a major consideration for schools opting in, as they must distribute up to $20.5 million annually to athletes. Attorney Mit Winter, a college sports legal expert, noted that most Power Four schools will allocate the bulk of these funds to male athletes, primarily in football and basketball, raising equity concerns.

Montana’s decision to opt out contrasts with rival Montana State’s choice to participate—a move that could create a recruiting disadvantage. "Schools that can offer payments will have a clear edge," Winter said.

For the majority of Division I programs joining the settlement, challenges remain. Many are restructuring donor-backed collectives, adjusting to new NIL reporting rules, and navigating athlete contracts resembling pro sports deals. While not all will hit the $20.5 million cap, most see participation as essential to staying competitive.

However, smaller schools face steep hurdles. Attorney Michael Rueda noted that many lack the resources to adapt quickly. "Some were just grasping NIL basics—now they’re facing a whole new system," he said. "For them, keeping up financially may be unrealistic."

As the college sports landscape transforms, the divide between opt-ins and opt-outs could reshape competition, recruiting, and the future of athlete compensation.