The history of athlete compensation highlights shifts in college sports
Yahoo Sports • 1 min read • Latest: Aug 19, 2026, 5:26 PM
Last updated Aug 19, 2026
The NCAA was established in 1906, largely in response to increasing violence in college football. Over the years, various forms of athlete compensation, including scholarships and cash, have evolved, often in conflict with NCAA amateurism standards. The landmark O'Bannon lawsuit in 2014 introduced significant changes, allowing athletes to earn stipends and pursue name, image, and likeness deals. A pending Senate bill could further reshape compensation rules, potentially doubling the salary cap for athletes. The outcome may greatly impact athletic programs, particularly Olympic and women's sports, which are funded by football and basketball revenue.
- •NCAA founded in 1906 to address college football violence.
- •Historical athlete compensation includes scholarships and cash incentives.
- •The 2014 O'Bannon lawsuit transformed athlete compensation in college sports.
- •A Senate bill could double the salary cap for athlete compensation.
- •Olympic and women's sports funding may be at risk without financial controls.
- 5:26 PMYahoo Sports — NIL is just the latest chapter in the long and uneven history of compensation in college sports
"The introduction of name, image likeness payments that rule the college landscape is hardly the first time atheltes have been compensated for playing. Almost since the beginning, they've received train tickets, some walking-around money and scholarships. Now, that money comes with the OK of the NCAA , though it doesn't mean college sports is truly clean. The NCAA was founded in 1906, in a push from President Teddy Roosevelt to do something about the sometimes-fatal violence in college football and to set some eligibility standards.
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