Higher education institutions are changing divisions and cutting programs ahead of House v NCAA hearing

The settlement approval hearing is set for April 7, 2025, Judge Claudia Wilken presiding. (PHOTO: FILE)

The effects of the House v. NCAA settlement are already being felt at higher education institutions that have smaller enrollments.

No matter the outcome of the hearing scheduled for Monday, April 7, it’s guaranteed that the longstanding debate about the legalese surrounding college student-athletes rights to be paid more than a scholarship will be shifting to a new narrative.

The settlement is a multi-billion dollar agreement, which eliminates existing restrictions placed on NCAA student-athletes, addressing specifically, name, image, and likeness (NIL) rights. The settlement would resolve back pay issues waged by plaintiffs, seeking lost payments from having their images used and establishes a future revenue-sharing model.

In recent weeks, Saint Francis University in Pennsylvania, which has a 2,000-undergraduate enrollment, announced it would be moving from Division I to III effective immediately. While it’s too early to tell if this could be the start of a trend at comparable Division I schools, it is a signal that the model is unsustainable for all colleges and universities.

“The House v. NCAA settlement hearing is set for Monday, April 7, and while approval is expected, it could still be delayed,” the National Field Hockey Coaches Association President Cate Clark told FAN. “The proposed revenue-sharing model poses a budgetary challenge for smaller Division I schools with lower enrollments—like Saint Francis—so it’s not surprising they’ve made the move to Division III to better align with their educational mission and budgetary priorities.”

According to the NCAA, “the Atlantic Coast Conference, Big Ten Conference, Big 12 Conference, Pac-12 Conference, Southeastern Conference and NCAA are rapidly preparing to implement a new model for the future of college sports focused on stability and fairness.”

“The proposed settlement would facilitate meaningful opportunities for student-athletes to further benefit from their participation in intercollegiate athletics, while establishing a robust system of oversight and controls to ensure fair competition and protect the integrity of collegiate athletics and the best interests of student-athletes, participating institutions and fans.”  

The NCAA reported that “student-athletes” could benefit from “free tuition, room and board, educational grants, academic support and tutoring, medical and mental health resources and support, nutrition resources and support, life skills development, superior coaching and training, and extended medical coverage after they stop competing.” 

Once a decision is made, “the responsibility for its implementation and enforcement will fall primarily to the five defendant conferences and the NCAA. To oversee this process, the conferences and NCAA have formed a Settlement Implementation Committee, made up of 10 athletics directors (two from each defendant conference) and the legal and compliance teams from the conferences and the NCAA.”

The expected impact is not only going to influence budgetary decisions at Division I colleges and universities, but also at divisions II and III in the future.

“While it’s too early to call it a trend, the financial pressure this (potential) new revenue sharing model in DI introduces may push smaller D-I schools to reevaluate,” Clark said. “Opting out of revenue sharing is an option, but it likely comes with a competitive disadvantage.”

She continued: “Beyond athletics, higher education is facing serious financial pressures. Since 2020, at least 75 nonprofit or public colleges have announced closures or mergers. In 2023 alone, 14 small colleges closed, and others—like Rosemont and Cabrini—were absorbed by larger institutions like Villanova. With enrollment declining and costs continuing to rise, smaller schools are feeling the strain more acutely.”

Bryn Athyn College, in Montgomery County, Pennsylvania, recently announced it would be eliminating all of its college sport programs.

“After a comprehensive review of our financial position, we have made difficult —but essential —changes to protect our core academic offerings and position the College for sustainable growth,” President Sean Connelly wrote in a letter. “We have taken strong and necessary action to ensure the long-term sustainability of our mission: to provide a distinctive higher-education offering grounded in the Heavenly Doctrine. This is a turning point —not an ending.”

The college’s undergraduate enrollment is a few hundred, and more than half of them were student-athletes, the school’s athletic website noted. The women’s sports programs cut included, basketball, cross country, lacrosse, soccer, tennis, and volleyball.

The Power Four Schools are expected to “weather these changes,” Clark said.

“For smaller institutions (those with fewer than 5,000 students), a revenue-sharing athletics model becomes a real numbers challenge—raising difficult questions about how to remain competitive with limited resources.”

She continued: “As the college landscape shifts, there could be more institutions following suit, to stay true to their mission and recognize their financial limitations. It will be interesting to see what unfolds over the next few years, given the changing landscape.”

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