The rapidly evolving landscape of college athlete compensation has reached a critical juncture, as the U.S. Department of Education recently issued a memo clarifying how federal Title IX gender equity laws apply to the new direct payments many athletic departments plan to make to their athletes.
Title IX Applies to Athlete Payments, DOE Says
According to the memo published by the Department of Education’s Office for Civil Rights, the division responsible for enforcing Title IX, direct payments made to athletes must be allocated proportionally between male and female athletes to comply with the law. This includes money paid through name, image and likeness (NIL) deals facilitated by schools, as well as the revenue sharing provision of a pending antitrust settlement between the NCAA and athletes.
Many major college athletic departments have developed plans to distribute up to $20.5 million directly to athletes annually, with a majority of that money earmarked for football and men’s basketball players. But the Department of Education says those payments would violate Title IX, which requires athletic financial aid and other benefits to be allocated equitably based on the overall gender breakdown of a school’s athletes.
When a school provides athletic financial assistance in forms other than scholarships or grants, including compensation for the use of a student-athlete’s NIL, such assistance also must be made proportionately available to male and female athletes.
– Department of Education Office for Civil Rights memo
Ramifications Remain Unclear
What’s less clear is how this interpretation will be applied and enforced moving forward. The guidance comes in the final days of the current administration, and it’s uncertain if the incoming leadership will take the same stance once in place. It also doesn’t provide definitive direction on the Title IX implications of payments from third-party collectives.
However, experts say the memo, even if not binding, provides important ammunition for potential lawsuits from athletes alleging gender inequity. It could also impact the viability of the pending antitrust settlement. At minimum, it has made athletic departments reevaluate their athlete compensation plans through a Title IX lens.
Equity in Exposure and Publicity
Beyond direct payments, the Department of Education also emphasized that Title IX requires schools to provide equitable publicity and exposure to male and female athletes. Historically, the vast majority of athletic departments have mentioned men’s sports far more frequently than women’s in social media posts and other promotions—a disparity that could now leave them vulnerable to legal challenges.
Key Takeaways on Title IX and Athlete Pay
- Direct payments to athletes facilitated by schools must be allocated proportionally between men and women
- Many current plans to distribute money primarily to football and men’s basketball likely violate Title IX
- Memo is not definitive but provides basis for potential lawsuits
- Schools must also provide equitable publicity and exposure to male and female athletes
- Long-term ramifications depend on stance of incoming Dept. of Education leadership
As the college sports world grapples with a new era of athlete empowerment and compensation, this Title IX guidance marks an important milestone—signaling that gender equity must remain a central consideration. Though its true impact remains to be seen, it’s a wake-up call that the tough questions around fairness in this new paradigm are only just beginning.
