Rev-Share Agreement
A revenue-sharing agreement is the contract between a school and an athlete covering direct compensation from the school’s revenue-sharing pool. Along with the institutional financial aid agreement, it is one of the documents that replaced the National Letter of Intent as the core paperwork in recruiting.
Q. What’s in one?
The compensation amount and payment schedule, the term, and conditions covering things like roster status, conduct, injury and what happens if the athlete transfers. Terms vary widely, because there is no standard form.
Q. How is it different from an NIL deal?
A revenue-sharing agreement is with the school and counts against the cap. An NIL deal is with a third party, does not count against the cap, and has to clear NIL Go if worth $600 or more.
Q. Are these multi-year?
Often, and that is new. Multi-year commitments and buyout provisions have become a significant part of recruiting and retention.
Q. Is it the same as a scholarship?
No. Athletic aid is a separate agreement, though scholarship credits can interact with the cap. Most compensated athletes have both.
Q. Who drafts them?
Each school, typically with counsel. The absence of a standard template is a recognized problem and a real administrative burden on compliance and legal staff.
