Wyoming to Allot $2.8 Million After Opting in to NCAA Settlement

LARAMIE -- "No brainer."

That's what Tom Burman called the University of Wyoming's decision to "opt in" to the recently resolved House Settlement, which not only allows schools to enter into a revenue-sharing model with their student-athletes, but finally puts some rules in place during an uncertain time in college athletics.

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The university is expected to dispense roughly $2.8 million in the next calendar year, the longtime athletics director said on Monday during a near 25-minute meeting with the local media.

The national cap has been set at $20.5 million, a figure Burman said won't be reached by any program in a Group-of-Five conference.

Burman said those funds will be disbursed from "three buckets": Name, Image and Likeness licensing agreements ($1.5 million), scholarships ($300,000) and Alston money ($1 million).

"I've gone initially from real frustration to now I just want some stability and structure," he said. "It gives us some guardrails, tells us what the rules are, and we're going to play by it."

Revenue generation determines distribution. Burman said Monday, football generates anywhere from "60 to 85%" of the department's total revenue -- likely more on the high end of those figures, he added -- and will receive the most funds.

Only five sports, as of now, will reap the benefits of NIL licensing contracts: football, men's and women's basketball, volleyball and wrestling. If an athlete from another sport, Burman used a golfer, for example, "enhances the brand" in any way, an agreement could be reached.

Wyoming is adding eight new scholarships this season -- all on the women's side -- including four for volleyball, one in swim and dive, one in soccer and another in tennis.

What is Alston money?

That 2021 Supreme Court antitrust ruling allows schools to hand out educational benefits, capped at $5,980 per year. They are also tax free, Burman added, unlike NIL payments.

With a goal of doing away with "pay for play," Burman did say student-athletes are still required to earn NIL funds, through ventures such as in-person appearances or brand enhancement through avenues such as in-house promotions.

Burman, who has raised money for such projects as "Restore the War," the Wildcatter Stadium Club and Suites and the High Altitude Performance Center, among many others, during his 19-year tenure as the AD in Laramie, is taking a positive approach to this change.

The school, including the premiere booster arm, the Cowboy Joe Club, will now aid in the procurement of NIL funds, something only the collective, 1WYO, has been permitted to do over the last three years.

"It's significantly better than what it was, because now, I think there is a level of trust in how we operate," Burman said. "People are like, all right, A: Are these kids doing something for (the money)? Yes, they are. Here's kind of how they would do things for us, to help enhance us and grow our programs. B: There's a tax benefit to writing a check to the University of Wyoming or to the Cowboy Joe Club.

"So, yes, I think we're in a better position."

As part of the House Settlement, the university is also now on the hook for reimbursements to former student-athletes. That number totals $2.8 billion in damages. Burman said, over the next 10 years, Wyoming will lose funding to the tune of $550,000 annually.

A big hit? You bet.

Not to mention the department also expects another financial hit in the near future after the Mountain West Conference signs its new media rights deal. With five current programs -- Colorado State, Boise State, San Diego State, Fresno State and Utah State -- departing for the new-look Pac-12 after this season, Burman said the current $3.7 million a year the school receives will "probably" be lower.

"All of those things are adding stress to our bottom line," he continued, "and we're going to need help."

Where will that come from?

"That's why we're going to the state asking for more money," he added. "We did it last time and we were denied. We're going to go back again this year."

The department, though, could soon see an influx of cash once the legal battle between the Mountain West and Pac-12 is finalized. Poaching fees and exit fees are at the heart of the litigation. The next hearing in that case is set for Sept. 9.

What if Wyoming, like Army and Navy, didn't opt in to the House Settlement?

"Your recruiting efforts would disappear," said Senior Associate AD for Compliance, Peter Prigge.

"You'd be done," Burman added. "... You know, kids nowadays, and rightfully so, they believe that in a sport like football, that when they become good, they deserve a piece of the pie. That's hard for some people to accept.

"Wyomingites are becoming more understanding of the whole dynamic of the situation."

- University of Wyoming’s Top 50 Football Players