Dorm money, dining plans can be used to pay college athletes in Florida

Money universities make with dorms, dining plans, bookstores, and more will partially be redirected to Florida collegiate athletes under an emergency rule approved amid the ever-changing athletics landscape. 

The State University System (SUS) Board of Governors voted Wednesday to adopt an emergency rule to allow more flexibility in paying college athletes. 

Each university is now able to use up to $22.5 million in what are known as auxiliary funds to meet their athletic budgets. 

The House v. NCAA settlement this month starts revenue sharing July 1, allowing institutions to spend up to about $20.5 million to pay athletes in the coming year with the cap rising in years following, putting an increasing financial strain on institutions that hope to remain competitive. 

The board called it a “substantial fiscal burden.”

Universities are required to contribute to back-paying former athletes who competed as long ago as 2016 over a coming 10-year period. 

Previously, auxiliary money could not be used for athletics. 

“The universities are not proposing this as a permanent solution. The universities are proposing this as a bridge,” board Vice Chair Alan Levine said. 

Schools will be required to develop plans for how to replace that funding when the temporary rule ends in 2028.

“If we don’t act, there’s a really good chance that our institutions will be severely disadvantaged and I don’t think anybody wants that,” Levine said. 

Student athletes may be drawn to an institution based on how much money the school is able to pay them, ultimately boosting schools that are able to pay for higher-profile athletes.

The rule requires that moving funds around does “not have a material impact on the university’s current credit rating or negatively impact any non-athletic auxiliary enterprise.”

Levine called for a group within the Board of Governors to convene on the topic to further guide rulemaking as the athletic environment evolves. 

The Florida House of Representatives convened a special workgroup earlier this year on name, image, and likeness legislation, but reached no major conclusion. That was before the settlement was agreed to in June. House leaders said the group will continue into the next session. 

“Athletic programs have a major impact on universities. Competitive programs can lead to brand recognition, student involvement, and increased applications from prospective students. Florida universities are competing on a national level, against other states that have more flexibility regarding funding and expenditures. Delaying the implementation date of this regulatory amendment would put SUS institutions at a distinct competitive disadvantage,” the Board of Governors said. 

The University of Florida men’s basketball took home a national title in April, Florida Atlantic University men’s basketball made the Final Four in 2023, and Florida State University women’s soccer won a national championship in 2023.