The American Athletic Conference (AAC) has announced a plan requiring all member schools, except Army and Navy, to provide athletes with a minimum of $10 million in additional benefits over the next three years. This initiative sets the AAC apart as the only league to establish such a minimum standard, aligning with forthcoming revenue-sharing measures expected to begin in Division I sports by July.
Last week, AAC presidents ratified this plan after assessing a study by a college sports consulting firm, which evaluated the conference’s financial capabilities. The plan is poised to take effect following the anticipated approval of the $2.8 billion House vs. NCAA antitrust settlement by a federal judge, likely to occur next month.
Conference Commissioner Tim Pernetti revealed that 13 of the 15 AAC schools would participate in the House settlement, entailing payments to athletes that could reach up to $20.5 million per school in the first year. Army and Navy are exempt as they do not award athletic scholarships, and their athletes are ineligible for name, image, and likeness compensation.
Pernetti emphasized the conference’s commitment, stating, “For the conference, stepping forward and saying we’re not only opting in but here’s what we’re going to do at a minimum signifies the serious nature and our commitment to not only delivering a great experience for student-athletes but to success.”
Representatives from conferences such as the ACC, Big East, Big Ten, Big 12, and Southeastern Conference indicated that their schools would have the liberty to determine their revenue-sharing level. Most power-conference schools, benefiting from substantial television revenue, are expected to meet or approach the $20.5 million threshold.
According to the AAC’s plan, as initially reported by Yahoo Sports, individual schools have the discretion to decide how and when to distribute the $10 million, targeting completion by the 2027-28 period. Schools might choose different strategies, such as allocating $2 million in the first year, $3 million in the second year, and $5 million in the third.
The addition of new scholarships, support for academic expenses, and direct financial payments are considered part of these benefits. Schools are generally free, with some restrictions, to distribute these resources as they see fit.
“We wanted to provide flexibility for everyone to get to the number however it makes the most sense to them,” Pernetti explained. “What I expect is it’ll be a variety of different approaches. I’m pretty certain many of the institutions are going to exceed ($10 million) in year one.”
Failing to achieve the $10 million target over three years could potentially endanger a school’s membership in the conference. However, Pernetti indicated that there would be annual policy evaluations.
Emphasizing the long-term vision, Pernetti stated, “All our universities made the decision a long time ago to deliver athletics and this experience at the highest level. To me, this isn’t about revisiting that. This is about making sure we’re setting ourselves up for success in the future.”
