New BOG amendment clears way for FSU to fund $20.5 million in revenue sharing with athletes
Florida State will be able to fully fund more than $20 million in revenue sharing with athletes each year, thanks to an amendment passed by the Florida Board of Governors on Wednesday.
As a result of the amendment, which was pushed by FSU Board of Trustees Chair Peter Collins and others, public universities in the state will temporarily be able to use up to $22.5 million in “auxiliary” funds each year to share money with athletes in football, men’s basketball and other sports.
Auxiliary funds, which come from areas such as housing, bookstores and parking fees, previously were forbidden from use in athletics in an effort to keep state sports programs self-sufficient. But FSU and other schools asked for a three-year reprieve while dealing with the financial strain of diverting tens of millions of dollars to athletes.
The amendment will run through the end of 2028.
In September, Florida State athletics director Michael Alford told the university’s trustees that the Seminoles would be forced to come up with an additional $25 million per year to cover costs associated with the NCAA House settlement.
As part of the settlement, schools can choose to share the maximum $20.5 million with athletes in the upcoming year, but full participation is not required. The total amount is expected to increase incrementally each year.
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In an address to the Board of Trustees last week, Alford made it clear that Florida State plans to share the “highest” level of revenue possible in an effort to recruit and compete with the nation’s elite programs.
“So we can continue to compete for championships,” he said.
The amendment will provide help to all public universities in Florida, but it will be especially beneficial to Florida State. Within the next year or two, the Seminoles are expected to begin receiving an additional $15-20 million per year from the Atlantic Coast Conference as a result of their legal settlement with the ACC.
Any future move to another conference would yield even greater returns.
Florida State officials have not publicly disclosed how they plan to divvy up the money between various sports programs, but most schools are expected to allocate about 75 percent to football, followed by men’s basketball, baseball and then the other programs.
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