The Coastal Athletic Association (CAA) has opted into the House v. NCAA settlement, a decision that will have major implications for all member schools, including HBCUs North Carolina A&T and Hampton University.
By opting in, CAA schools will now be able to provide direct financial payments to athletes beyond traditional scholarships. This includes revenue-sharing opportunities and institutional facilitation of NIL (Name, Image, and Likeness) deals. For HBCUs like A&T and Hampton, this presents a chance to offer more competitive financial incentives to athletes, potentially helping with recruitment and retention in an evolving collegiate sports landscape.
However, this decision also comes with financial obligations. The NCAA is reducing revenue distributions to Division I schools over the next decade to fund the $2.8 billion settlement, with 60% of the burden falling on conferences like the CAA. For HBCUs that already navigate financial disparities compared to larger athletic programs, this could add new challenges.
Additionally, opting in means that North Carolina A&T and Hampton must comply with new roster limits that replace traditional scholarship caps. While this change offers more flexibility in scholarship distribution, it could impact team sizes and roster management strategies.
Title IX compliance is another key factor, as HBCUs must ensure that financial benefits for athletes are equitable across men’s and women’s sports.
For North Carolina A&T and Hampton, this decision signals a shift in how HBCU athletics operate within the CAA. While new opportunities for athlete compensation are now on the table, financial sustainability and equity will be critical factors moving forward.
Late last year, SWAC Commissioner Dr. Charles McClelland explained that the house settlement will impact every school in the conference and would create some challenges.
“The SWAC conference’s contribution to that [settlement] is $30 million. Southern University’s portion of that is $3 million, so some of the revenue is going away. There’s going to be some challenging times from a financial standpoint.”