004. Professionalizing College Sports
Revenue sharing, private investment, and executive leadership are redefining the future of college athletics.
College sports have moved beyond being just a proving ground for student-athletes, they’ve become a multibillion-dollar industry that’s becoming more professional. The line between amateur and professional has all but disappeared, blurred by new regulations, shifting revenue models, and evolving university strategies. At the center of this shift are three key components at play: athlete empowerment, institutional governance, and a demand for innovation.
One of the most significant developments is the entry of private equity into collegiate sports space. Not through traditional equity ownership like we see in pro sports, through private-credit deals set up as loans. Meaning schools can access much-needed capital to cover athlete compensation and facility upgrades, without giving up control of their athletic department program or governance. It’s a fine line between commercial opportunity and the core educational mission.
My time inside the University of Cincinnati athletic department, and later with the Orange Bowl Committee, showed me how the pressures placed on athletic leadership are growing and why fresh financial and operational strategies are essential.
Quick Context
House v. NCAA Settlement: A landmark 2025 legal agreement in July permitting Division I schools to compensate athletes directly, capped at $20.5 million per institution, effectively ending the traditional amateurism model.
Name, Image, and Likeness (NIL): Athletes can monetize their personal brands through endorsements, sponsorships, and partnerships - creating new revenue streams and autonomy.
Roster Caps vs Scholarship Limits: A move from scholarship limits to roster caps, opens the door for more flexibility in resource allocation and roster management by schools.
Private Equity (PE) Debt v. Equity: In college sports, PE firms are entering through private-credit deals. Loans that provide capital without giving up control. A lifeline for schools, but one that has to align with institutional values.
The Shift
The professionalization of college sports is quickly reshaping every layer: compensation, governance, operations, and athlete experience.
The House v. NCAA settlement brings direct athlete payments within new spending caps and replaces scholarship limits with roster caps, offering athletic departments more flexibility and budget control.
Universities like UCLA, Villanova, and Penn State are building out executive leadership teams with Chief Revenue Officers (CRO), signaling a shift toward running athletics like business enterprises. Business leaders focused on revenue growth, brand development, and media rights optimization. PE players like Elevate, backed by Velocity Capital Management and the Texas Permanent School Fund Corporation, have raised $500M to invest in facilities, financing athlete compensation, and new revenue opportunities of premium seating and hospitality upgrades.
An example of facility investment can be seen at the University of Houston, which recently unveiled its $130 million Memorial Hermann Health System Football Operations Center. A 105,000 square-foot facility with state-of-the-art performance and academic support spaces, premium seating including suites and club areas, and athlete amenities designed to enhance fan engagement this upcoming football season.
This complexity is driving demand for specialized leadership. Michigan State, Villanova, and the Big 12 Conference have already established executive-level roles to navigate this era of revenue growth, compliance, and brand management.
The Gap
While the oppportunities are real, so are the risks. A number of gaps could undermine sustainable progress if continuously ignored:
Equity and Inclusion: Compensation models risk widening funding gaps and cutting into Title IX compliance, particularly for non-revenue sports.
Organizational Readiness: Many athletic departments lack the business infrastructure to manage revenue-sharing, compliance, and payment systems at scale.
Athlete Education: Inconsistent access to financial literacy, NIL management, and contract negotiation puts athletes at risk.
Cultural and Legal Uncertainty: The collapse of amateurism raises tough questions about labor rights, collective bargaining, and what it means to preserve the “student-athlete” model.
Private Equity Governance: PE capital brings opportunity, but without strong alignment, it risks clashing with institutional missions.
The Next Move
College sports need role-specific strategies to capture this momentum, balancing growth with equity and compliance.
For University & Innovation Leaders
Universities must take the lead and integrate long-term, systemic solutions that innovate across education, governance, and university missions.
Embed financial, legal, and brand education into both athletics and academics.
Design transparent business models for resource distribution and revenue sharing.
Create alignment between athletic departments and the broader university mission through forward-looking leadership.
New partnerships, like the Big Ten Conference and Big 12 Conference working with PayPal, show how digital ecosystems can streamline athlete payments while enhancing institutional compliance.
For Founders & Ecosystem Builders
Startups and innovators should focus on tools that drive efficiency and empower athletes:
Build integrated platforms for NIL management, compliance, and financial wellness.
Pilot solutions directly with athletic departments to reduce friction and improve outcomes.
Create ecosystems that connect athletes, schools, and startups to accelerate adoption of new technologies.
Develop next-gen payment solutions that support athlete autonomy while protecting institutional guardrails.
For Sports Executives & Operators
Athletic departments must evolve operationally to thrive:
Build cross-disciplinary teams spanning revenue, compliance, athlete services, and marketing.
Scale education programs that equip athletes with financial literacy, NIL strategy, and negotiation skills.
Key Takeaways
The professionalization of college sports is one of the most significant shifts in the history of athletics. The leaders who succeed will be those who embrace the financial, regulatory, and cultural complexity while designing strategies that prioritize equity, compliance, and athlete empowerment.
Make Your Next Move with HTX
At HTX Sports Tech, we work with investors, athletic departments, startups, and properties to help navigate these changes. Streamlining operations, enabling smart tech adoption, and turning signals into systems with the goal of saving them money, saving time, reducing risk, and build for long-term impact.
The next era of college sports is here. Let’s connect and shape it—together.
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