NCAA President Charlie Baker recently announced a plan introducing the concept of an “enhanced educational trust fund,” granting major athletic programs the autonomy to compensate athletes directly—a notable departure from the NCAA’s historical commitment to amateurism.
Baker’s proposal responds to the mounting external pressures on the NCAA, including Congressional and legal interventions related to NIL (Name, Image, and Likeness) and athlete compensation. By taking this proactive initiative, the NCAA aims to regain control over its internal affairs, particularly addressing tensions within Division I, where the rift between well-funded and financially constrained schools has become increasingly apparent.
Legal expert Marc Edelman criticized the NCAA for its historical hesitancy to embrace reform. “This association, the #NCAA, ignores experts in the field and does nothing to promote reform until their backs are legally against the wall. Right now, their backs are legally against the wall, and Baker knows it.”
On the job less than a year, Baker envisions schools “that are not sure about which direction they should move in an opportunity to do more for their student-athletes than they do now, without necessarily having to perform at the financial levels required to join the [new] subdivision.” Baker also wants to grant other Division I schools “the ability to do whatever might make sense for them and their student-athletes within a more permissive, more supportive framework for student-athletes than the one they operate in now.”
Karen Weaver, an adjunct assistant professor at the University of Pennsylvania, describes the proposal as “a way to keep the organization together under the NCAA umbrella.” She noted that the proposal grants significant flexibility to high-profile schools, a move intended to sustain NCAA unity while adapting to the changing dynamics of college sports.
Central to Baker’s proposal is creating a ‘Rich Schools’ subdivision—a concept signifying a seismic shift in collegiate athletics. This subdivision empowers powerhouse institutions like Alabama and Michigan to set their own rules on critical matters such as roster size, transfers, and NIL. While some critics view this as a recycled idea, it directly addresses concerns of wealthy sports programs feeling constrained by decisions made alongside less affluent programs.
Financially, Baker’s proposal includes a provision that schools in the ‘Rich Schools’ subdivision commit a minimum annual investment of $30,000 into an ‘enhanced educational trust fund’ for a minimum of 50% of eligible student-athletes. This recommended investment aligns with the overarching principles of Title IX regulations, emphasizing gender equity in educational programs, including athletics.
