Virginia Tech AD Whit Babcock Breaks Down Newest Payment Sharing Model for Virginia Tech

NCAA Athletics was recently rocked when a new structure revolving around payments to athletes was introduced.

U.S. District Judge Claudia Wilkins granted approval to the NCAA's settlement of three antitrust cases and now schools are permitted to share revenue with athletes within a new enforcement structure led by the ACC, SEC, Big Ten, and Big 12.

With this settlement, Virginia Tech and other schools are now allowed to share $20.5 million of their revenues with players and the settlement will also include $2.8 billion in back payments for athletes who competed from 2016-2024. The new revenue-sharing cap will increase by at least 4% each year during the 10-year agreement.

How will each school distribute the funds? According to Ross Dellenger at Yahoo Sports, "Most power conference programs are planning to distribute 90% to football and men’s basketball, as those are, for the most part, the only revenue-generating sports for an athletic department. In Year 1, that’s about $13-16 million for a football roster and $2-4 million for men’s basketball, with the remaining amount shared with women’s basketball, baseball, volleyball and other Olympic sports"

Since this groundbreaking news, Virginia Tech Athletic Director Whit Babcock released a message Tuesday afternoon describing how it affects the Hokies.

"This new framework introduces student-athlete revenue sharing, removes scholarship limits in favor of roster limits, and brings long-overdue structure and transparency to a system that desperately needed both. It will redefine how we operate, how we compete and how we support our student-athletes moving forward.

"The settlement also presents major financial challenges for all of us, with an expected increase in annual costs in the tens of millions of dollars. Like many in the Power Four, we will continue to identify new revenue streams and evaluate how we support our enterprise moving forward. With challenge comes opportunity — and Virginia Tech is ready.

"There will be renewed emphasis on the Hokie Club and its critical role in our future. Hokie Club membership remains the most direct and impactful way our fans, donors and alumni can help us meet this moment and continue building a model that supports our student-athletes at the highest level.

"We are not just responding to change — we are preparing to lead through it. We have been working diligently behind the scenes on our path forward for over a year now.

"At Virginia Tech, we are firmly aligned with the Board of Visitors, President Sands and university leadership in our vision to compete at the highest level, elevate the student-athlete experience, and strengthen the role athletics plays in advancing our university, community and region. That commitment has not changed — it’s only grown stronger.

"We have a proud tradition, a passionate fanbase and a growing foundation of support through the Hokie Club and “new era” NIL efforts like Triumph. These are the cornerstones that will help us compete — and win — at the highest level in this next chapter of college athletics."

Babcock furthered his stance with an expected arrival date of these changes.

"We are in the final stages of implementation, with details still emerging between now and the official start of this framework on July 1."

The former Cincinatti AD finished off his message saying:

"Now, more than ever, your continued support matters. This is a moment to come together, invest in our future and stand strong for the programs and people who make us proud to be Hokies.

To all of you — thank you. Your loyalty, your belief and your support are what give us the confidence to move boldly into this next chapter."

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