Date of Graduation

5-2026

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

<--Please Select Department-->

Advisor/Mentor

Robinson, Ryan

Abstract

The NCAA's House v. NCAA settlement, finalized in June 2025, allowed Division I universities to directly share athletic revenue with student-athletes for the first time, resulting in up to $20.5 million in new annual costs per institution. This thesis explores how this model affects the athletic department's financial reporting and long-term sustainability. Using historical financial data, legal documents from the first year of revenue-sharing litigation, and relevant accounting standards, it addresses three key questions: how revenue-sharing obligations should be recognized and disclosed under nonprofit standards, how breach-of-contract disputes influence financial reporting obligations, and whether the model is sustainable across different competitive tiers. The study finds that revenue-sharing payments should be recorded as a separate accrual expense - Institutional NIL Revenue Share Expense - with the related payable recorded at contract signing. When athletes leave mid-contract and institutions seek recovery, the expected proceeds are considered a gain contingency under ASC 450-30 and should be recognized only when realized, with disclosure limited to the notes. The sustainability analysis shows that programs at all levels entered the revenue-sharing era either in deficit or near it, with Group of Five and FCS schools already relying heavily on institutional subsidies. To adapt, programs are exploring new revenue streams, reducing staff, and even dropping non-revenue sports, as at the University of Arkansas, which announced the discontinuation of its tennis programs in April 2026. This thesis contends that the revenue-sharing model has heightened the strategic importance of athletic department financial reporting beyond mere compliance.

Keywords

House v. NCAA; ASC 450; Revenue Share; NIL

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