The House settlement was finally approved on Friday night after months of waiting, ushering in a new era of college athletics.
For Michigan, it means that the Wolverines can pay athletes directly for the first time. Other schools can do the same. NIL will still exist, but it will be overseen by a new College Sports Commission.
There will be around $20 million this year for revenue share. Most of that money will go to football. Some will also go to men's and women's basketball, as well as some other sports.
Another big change is roster limits. There will be a 105-man roster limit now in football. The roster limits are going to be 15 for men's and women's basketball.
Michigan will add 74 scholarships
Other sports, such as baseball and volleyball, will have more scholarships to offer. According to the Michigan Insider, Warde Manuel, the Michigan athletic director, said that the Wolverines would fund another 74 scholarships at the cost of $5 million.
The Wolverines will have to raise more money to cover all that. In order to make up for that, Manuel said there will be more events at Michigan Stadium. Advertising in the stadium is another option. That's a revenue source Michigan hasn't tapped into yet.
"We're cutting almost $8 to $9 million out of our budget for next year. We're doing different things to drive more revenue through where we currently have revenue," Manuel said to 247 Sports. "Where we don't look like our competitors is what we do in Michigan Stadium. Our competitors across the board have advertising in their stadiums. And those who we compete with are generating tens of millions of dollars in advertising revenue from advertising in their stadium that they put toward their program. And so we have choices."