ISU ‘opts in’ to lawsuit settlement to allow for revenue sharing with student-athletes

NORMAL (25News Now) - Illinois State University’s athletics department is choosing to “opt in” on a court settlement allowing colleges and universities to start paying college athletes.

The athletic department’s decision gives ISU the flexibility in the future to share revenues with student-athletes, according to a letter to Redbird fans from Athletic Director Jeri Beggs.

Beggs said this will strengthen the program in the long run, “However, this comes with a cost, and we will need your help to remain competitive.”

ISU is shifting from a system limiting traditional scholarships to one capping the number of athletes on team rosters.

Beggs said ISU’s athletics department still stands to lose about $500,000 a year for the next decade from the National Collegiate Athletic Association.

According to Beggs, no Redbird student athlete will directly benefit from the settlement approved by a federal judge.

Also, she said the department will have to be “creative” in generating new revenue streams and be “disciplined” in managing expenses.

“While this seems unfair, we understand the broader responsibility we share in being a member institution of the NCAA and will adapt appropriately,” said Beggs. “I want you to know that we are prepared, and we’re not just adapting – we want to be leaders in this new era!"

The “strategic” decision to “opt in” to the new revenue sharing model “reflects both our commitment to Redbird student-athletes and our confidence in our future,” Beggs said.

The judge who approved the settlement agreed to “grandfather” student-athletes above the roster cap at the discretion of head coaches.

“If not for this change, we could have lost 40+ young men and women to meet the new roster caps. These dedicated student-athletes have earned their place as Redbirds, and we’re proud to stand by them,” said Beggs.

Beggs is encouraging the public to make annual donations of at least $5,000 to become members of the Battle Bird Society and buy season tickets.

The athletics director is also urging businesses and others to boost their participation in the Empower The Nest initiative to pay student-athletes in exchange for services including promotional appearances, commercials, autographs, private coaching, sports camps, and clothing.

“NIL is not going away - it’s growing (826% growth in Empower The Nest since its inception) - and we encourage every Redbird fan, business owner, and alum to explore how they can be a part of this movement,” Beggs said.

NIL stands for Name, Image, and Likeness. Colleges, mostly from the power conferences of the Big Ten, ACC, SEC, and the Big 12, will have to pay back damages for using athletes’ names, images, and likenesses.

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