FSU's athletic director, Michael Alford, indicated that the university needs an additional $25 million annually to address costs stemming from the NCAA settlement, but the auxiliary funds will help alleviate immediate financial pressures.

This new funding model is part of a broader trend, with other states like Louisiana also adjusting funding rules to support college athletics.

This decision is a response to the NCAA House Settlement, which allows universities to directly compensate athletes starting July 1, 2025, and provides a temporary financial workaround as institutions adjust to this new model.

FSU is expected to gain an additional $15-20 million annually from the Atlantic Coast Conference due to a legal settlement, which could further bolster its athletic programs.

Florida State University (FSU) has received approval to utilize up to $22.5 million in auxiliary funds to support revenue sharing with student-athletes, a measure sanctioned by the Florida Board of Governors on June 18, 2025.

However, this funding approach is temporary, with universities required to find alternative funding sources by the end of fiscal year 2028.

While specific allocation plans for the shared funds have not been disclosed, it is anticipated that around 75% will be directed towards football, with the remainder going to men's basketball, baseball, and other sports.

Board Vice Chair Alan Levine emphasized the urgency for Florida institutions to act to avoid falling behind their national competitors due to less flexible funding options.

It remains uncertain whether other Florida universities will also utilize auxiliary funds for their revenue-share allocations, as institutions like FIU and FAU have not commented, while USF is still deliberating.

There are concerns that the ability of universities to pay athletes could influence student-athletes' choices, potentially giving schools with more funding a competitive advantage.

The Board of Governors highlighted the significant impact athletic programs have on brand recognition and student recruitment, emphasizing the competitive nature of college athletics.

The American Athletic Conference has established a minimum revenue-share of $10 million per school over three years for its members, including the University of South Florida and Florida Atlantic University.