Photo by: Andrew Pedersen
Letter From the AD: Montana State Athletics Plans to Opt Into House Settlement
3/5/2025 12:37:00 PM | General
Director of Athletics Leon Costello lays out implications of opting into plan
March 5, 2025
Dear Bobcats,
Last Friday, MSU Athletics gave notification to the NCAA that MSU would be opting into the terms of the House v NCAA settlement. After submitting our intent, we received an email from the NCAA that the formal opt-in due date had changed from March 1 to June 15, 2025, or a later date if the settlement is not yet finalized. In any case, it remains the intention of MSU Athletics to opt into the settlement.
Why is MSU opting in?
Montana State University and Bobcat Athletics are committed to providing student-athletes the necessary support and resources to maintain and enhance their athletic and academic excellence. Opting into the settlement will provide MSU maximum flexibility when providing this support to our student-athletes now and in the future. The settlement opens the door for new benefits to be shared with Bobcat athletes at a level that fits our strategic financial model. This framework will continue to offer and enhance a second-to-none, championship-level experience for all student-athletes and will create more opportunities for student-athletes who choose to be a Bobcat.
It also allows Bobcat Athletics to be prepared for the changing landscape of college athletics nationally and is designed to limit future antitrust litigation and liability. As we have seen over the last few years, college athletics is changing by the day, and we don't know what the future holds. However, with the information we have today and with the current structure of our department, opting into the settlement best positions Montana State Athletics to be prepared for what lies ahead.
What are the House v. NCAA requirements for MSU?
Thank you for your continued support of Bobcat Athletics and for putting us in a position to make this decision. We are living in an unprecedented time of success at MSU, and that does not happen by accident. It takes great people believing in a vision and working together to accomplish goals. Montana State University is special, and it is on us to keep the momentum going. As always, "it's a great day to be a Bobcat!"
Go Cats!
Leon Costello
Director of Athletics
Dear Bobcats,
Last Friday, MSU Athletics gave notification to the NCAA that MSU would be opting into the terms of the House v NCAA settlement. After submitting our intent, we received an email from the NCAA that the formal opt-in due date had changed from March 1 to June 15, 2025, or a later date if the settlement is not yet finalized. In any case, it remains the intention of MSU Athletics to opt into the settlement.
Why is MSU opting in?
Montana State University and Bobcat Athletics are committed to providing student-athletes the necessary support and resources to maintain and enhance their athletic and academic excellence. Opting into the settlement will provide MSU maximum flexibility when providing this support to our student-athletes now and in the future. The settlement opens the door for new benefits to be shared with Bobcat athletes at a level that fits our strategic financial model. This framework will continue to offer and enhance a second-to-none, championship-level experience for all student-athletes and will create more opportunities for student-athletes who choose to be a Bobcat.
It also allows Bobcat Athletics to be prepared for the changing landscape of college athletics nationally and is designed to limit future antitrust litigation and liability. As we have seen over the last few years, college athletics is changing by the day, and we don't know what the future holds. However, with the information we have today and with the current structure of our department, opting into the settlement best positions Montana State Athletics to be prepared for what lies ahead.
What are the House v. NCAA requirements for MSU?
- The settlement calls for total back damages from all NCAA DI institutions of approximately $2.78 billion, to be paid over 10 years, equating to approximately $280 million annually with distribution of back damages as determined by plaintiffs.
- Whether opting in or not, all Division I institutions are required to participate in the payment of back damages. MSU is prepared to pay its portion over the next ten years.
- Going forward, the settlement allows DI schools that choose to participate in the new structure to provide increased benefits to student-athletes, including revenue from NIL (Name, Image, Likeness) contracts
- The new benefits that may be made available to student-athletes would be in addition to the many benefits currently provided to student-athletes, including tuition, room & board, educational grants, academic support and tutoring, medical and mental health resources & support, nutrition resources & support, life skills development, superior coaching and training and extended medical coverage after they stop competing.
- MSU plans to continue to offer the same number of scholarships to all the sports and activities it currently offers. Additionally, MSU plans to support all student-athletes with the same, and in many cases, enhanced services it currently provides.
- Under the new model, institutions may pay student-athletes directly for their NIL rights. Third parties may continue to enter into NIL agreements with student-athletes. Such agreements will be subject to review to ensure they are legitimate, fair market value agreements and not used for pay-for-play.
- The Bobcat Collective will continue to play a pivotal role in NIL activities for MSU student-athletes. Opting into the settlement will allow MSU and the Bobcat Collective to work together comprehensively to benefit student-athletes. Also, opting in provides MSU the ability to share revenues earned by Bobcat Athletics directly with student-athletes. Sharing revenue is not a requirement of the settlement, and the amount can be determined by the institution as long as that amount does not exceed the determined maximum revenue share pool.
- The new model allows for the establishment of a robust and effective enforcement and oversight program to ensure the new NIL model achieves its objectives. The establishment of a clearinghouse for NIL payments over $600 would give institutions access to information about external NIL activities, providing a level of transparency that does not currently exist to allow for better management of third-party influence and better assurance of legitimate NIL activity.
- The new benefits that may be made available to student-athletes would be in addition to the many benefits currently provided to student-athletes, including tuition, room & board, educational grants, academic support and tutoring, medical and mental health resources & support, nutrition resources & support, life skills development, superior coaching and training and extended medical coverage after they stop competing.
- Lastly, scholarship limits will be eliminated in all sports, and roster limits will be established. Institutions have the discretion to offer partial or full scholarships provided they do not exceed the roster limits. This change will allow institutions to provide additional scholarships to student-athletes in the future.
- As mentioned above, MSU will meet the roster limit requirements and plans to continue to offer the same number of scholarships it currently offers to its student-athletes and programs. By opting in, we can increase the scholarship allocation in the future if Big Sky Conference rules allow it.
- Continue to support Bobcat Athletics as a season ticket holder, donor, and sponsor. These funds are critical to continue our success and support for all Bobcat student-athletes.
- Ask questions about how to participate in supporting student-athletes through the Bobcat Collective or revenue sharing opportunities with MSU.
- Tell others to join us. As we embark on this new journey, we need to continue to grow our fanbase and support.
Thank you for your continued support of Bobcat Athletics and for putting us in a position to make this decision. We are living in an unprecedented time of success at MSU, and that does not happen by accident. It takes great people believing in a vision and working together to accomplish goals. Montana State University is special, and it is on us to keep the momentum going. As always, "it's a great day to be a Bobcat!"
Go Cats!
Leon Costello
Director of Athletics
Leon Blue and Gold Gala Tickets
Friday, September 05
Leon Costello Press Conference: Kennedy-Stark Athletic Center
Thursday, July 31
A Conversation with President Dr. Waded Cruzado | Montana State Athletics
Monday, May 19
Big Cats, Little Trucks - Willie Patterson
Wednesday, May 03
