Beginning this autumn, Oregon State athletics is entering a new era.
Many players find it to be financially gratifying, difficult but important to maintain their competitiveness for the school, and potentially harmful to walk-on prospects and certain non-revenue sports.
The outcome of the House v. NCAA settlement, which is pending court approval, allows schools to split up to $20.5 million in earnings with their athletes beginning in the 2025–2026 academic year.
Oregon State automatically opted into the settlement because it was a part of the former Pac-12.Athletes may receive up to 22% of school revenue, or a maximum of $20.5 million. Revenue can be divided across schools at any ratio up to 22%.
Athletes can receive direct payouts from Oregon State for NIL, graduation bonuses, Alston academic benefits, and educational incentives since the university is bringing its name, image, and likeness in-house. Dam Nation will remain operational, giving OSU players more NIL possibilities.
Although it’s too soon to predict how much Oregon State will spend on revenue sharing, athletic director Scott Barnes stated that it won’t be the cap amount. Regarding the $20.5 million, let me say this. More schools will fall short of that than succeed.
Barnes guarantees that Oregon State’s revenue share total will be comparable to and competitive with those we have historically recruited against. That’s what we want.
Barnes stated that because the funds are raised through a combination of our charitable efforts, income production, and the marketplace, Oregon State’s final revenue sharing amount might not be known until far into the academic year. A $3 ticket fee for all Oregon State home athletic events, which will go into effect the next academic year, is one known source of income.
Roster limitations are one significant modification from the settlement. Oregon State will no longer have a cap on the number of walk-ons and scholarship athletes allowed in each sport. Every sport now has a roster cap, and all players are eligible for revenue-sharing and scholarship compensation. However, for many walk-on athletes, it also marks the end.
For instance, the 2025 football season will feature a roster cap of 105 players. Some of the 105 players may be walk-ons, while others may be on partial scholarships. But there can’t be more than 105 players on the roster. In the past, the Beavers’ football teams have frequently had between 110 and 125 players, 85 of whom were on scholarship and the remainder walk-ons.
According to Barnes, the majority of FBS schools will continue to offer about 85 football scholarships, with the remaining players being walk-ons who are still eligible for academic bonuses and NIL.
Men’s and women’s basketball (15), baseball (34), women’s track & field (45), men’s and women’s golf (9), gymnastics (20), men’s and women’s soccer (28), volleyball (18), softball (25), men’s and women’s rowing (65), and wrestling (30) are the other Oregon State sports with roster limits for 2025–2026.
Full or partial scholarships are available in all sports. Walk-ons are permitted as well, but they cannot go over the roster cap.
Oregon State intends to give each head coach a plethora of resources, including NIL and scholarship funds and benefits. Barnes stated that each sport’s yearly budget has not yet been established.
According to Barnes, it’s one of those situations where the plane is leaving the runway while we construct it because everything moves so swiftly. It’s not like a switch is flipped and we suddenly find ourselves with a lot of money. We are actively working to raise it.
One of the settlement’s repercussions is the elimination of some OSU sporting programs to help pay for extra costs. Revenue sports will be the top goal, according to Barnes. The only sports that regularly make money right now are men’s basketball and football. Baseball and women’s basketball are two examples of sports that generate substantial income. However, there may be reductions in other sports that bring in little money from ticket sales or broadcast.
Barnes stated that he does not intend to lay off employees, but every time a staff position becomes available, we will need to determine whether we want to keep funding that position or find other uses for the money.
Barnes stated that it will be difficult to finance sports at the level they are at in the future, including golf, gymnastics, rowing, and other low-income sports. The deal has unexpected repercussions. Those cash must come from somewhere to cover the new costs. Olympic sports will eventually see some cuts as a result of revenue-driven sports being prioritized.
Barnes stated that Oregon State and Dam Nation will continue to collaborate, even if several FBS schools are disbanding their collectives. At the moment, Dam Nation handles all of Oregon State’s NIL support, collecting all donations for that purpose and forming alliances with companies seeking to do business with OSU players.
Dam Nation will primarily focus on growing its membership base and establishing business partnerships with players, even as it continues to raise funds and provide financial possibilities to Oregon State athletes. Most people will donate to Oregon State Foundation instead than Dam Nation when they make future monetary NIL gifts. This relates to the tax situation. Because Dam Nation lacks 501(c)(3) registration, donors do not receive a tax write-off, whereas the Foundation does.
Kyle Bjornstad, a co-founder of Dam Nation, stated, “I’m actually all for that.” They ought to be able to deduct taxes.
While simple gifts to Dam Nation are not deductible, businesses who engage Oregon State athletes for commercial purposes are eligible for a tax write-off because it is an expense.
Why does Dam Nation lack the 501(c)(3) non-profit status that certain collectives possess? According to Bjornstad, Dam Nation’s actions are not altruistic.
“I don’t ever want to put myself in a bad spot and get into trouble later,” Bjornstad stated. I’m aware that the IRS will eventually take a tough stance on such matters.
Bjornstad hopes Oregon State donors to keep paying the $10 monthly membership fee to Dam Nation. Members get a variety of benefits, including meet-and-greets and products. There are 438 members of Dam Nation at the moment.
Even if some of the NIL resources move to Oregon State, Bjornstad thinks Dam Nation has a bright future. Dam Nation, in his opinion, adds value to OSU.
“We still have a lot of other things that can bring in resources that can be of value to the school, but my focus will shift a little bit from taking in donations,” Bjornstad said.
The contact information for Nick Daschel is 360-607-4824, [email protected], or @nickdaschel.
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