It’s July 1, the day when Division I athletics will change forever in Maryland and around the nation. After a five-year legal battle, the landmark House v. NCAA settlement goes into effect and puts college sports on a new path, where schools will pay athletes directly. As part of the settlement, roster sizes will be capped to maintain competitive balance and athletes who missed out on name, image and likeness opportunities going back to 2016 will be paid by the NCAA.

Schools in the so-called Power Five conferences, such as the University of Maryland in the Big Ten, are required to take part in the settlement, while schools in smaller conferences can choose to opt in or out. Here’s a look at what local universities are doing.

First, what is the House v. NCAA settlement?

Long story — and many lawsuits — short, the House v. NCAA settlement was finalized June 6 after Judge Claudia Wilken approved a plan between the NCAA, lawyers representing all Division I athletes, and their respective conferences.

The agreement ended a class-action lawsuit brought by former Arizona State University swimmer Grant House and TCU basketball player Sedona Prince, as well as two other lawsuits: Hubbard v. NCAA and Carter v. NCAA.

Student athletes alleged the NCAA violated antitrust laws by using scholarship limits and rules limiting third-party compensation.

The final decade-long plan approved by the judge includes four major components:

1. $2.8 billion in back pay for athletes who competed in college sports between 2016 and this year.
2. Future payments from schools to athletes. The maximum allowable amount for the 2025-26 year is $20.5 million per school, but it will increase every year during the agreement.
3. Name, image and likeness deals of at least $600 will be reviewed by a newly created body, the College Sports Commission, to make sure payments aren’t used for recruiting or retention purposes. Deals will go through NIL Go, a clearinghouse operated by the accounting firm Deloitte.
4. Roster limits for each sport, which take the place of scholarship limits in an attempt to maintain an even playing field between large and small schools.

The settlement automatically applies to any team in the Power Five conferences: the SEC, ACC, Big Ten, Big 12 and Pac-12.

Who’s opting in?

The University of Maryland has pledged to pay the full $20.5 million allowable amount to student athletes, according to their statement made June 12.

In a letter to supporters, Senior Associate Athletic Director Kirby Mills said “the vast majority of it going to our revenue-producing sports – football, men’s basketball and women’s basketball."

While Johns Hopkins fields 22 Division III varsity teams, its men’s and women’s lacrosse teams are in Division I as part of the Big Ten. As such, the lacrosse teams were automatically enrolled.

“With the support of our University Administration, we have already set a plan in place to offer additional scholarships moving forward,” Hopkins athletic director Jennifer Baker said in a statement. “Johns Hopkins is fully committed to recruiting and competing at the highest level in men’s and women’s lacrosse, and this is yet another demonstration of that unwavering commitment.”

Morgan State publicly announced its plan to join the settlement and invest about $231,227 into a payout fund, the university said in March.

“Opting in ensures that we remain competitive while continuing to prioritize the well-being and success of our student-athletes,” said Dena Freeman-Patton, vice president and director for Intercollegiate Athletics at Morgan. “This decision allows us to leverage institutional resources strategically, invest in our programs, and create pathways for financial support beyond traditional NIL opportunities. Ultimately, this strengthens our ability to recruit, retain, and support the next generation of Morgan Bear athletes.”

Morgan State is far from the only HBCU to join the settlement. In-state Mid-Eastern Athletic Conference rivals Coppin State and the University of Maryland Eastern Shore have also opted in.

University of Maryland Eastern Shore cited increased visibility and access, as well as maintaining competitiveness in the recruiting space, as reasons to join the settlements in a May 7 statement.

Most Maryland Division I schools have yet to disclose the full amount they plan on spending.

For example, Towson and Mount St. Mary’s University agreed to opt in, but there are still questions about how much money the schools plan to invest and which teams will benefit most.

Who’s opting out?

Two Division I universities have already confirmed they will opt out of the settlement: UMBC and Loyola Maryland.

“Loyola has not opted in to the House settlement at this time and will continue to assess the changing landscape to best determine future decisions,” the university said in a statement to The Baltimore Banner.

UMBC did not provide further explanation of its decision.

What about the Naval Academy?

Due to Department of Defense regulations, the Naval Academy will not opt into any revenue sharing agreements, nor do the student athletes receive any name, image or likeness compensation.

Because Navy’s football team is in the American Athletic Conference, and the majority of its other varsity teams are in the Patriot League, the roster limits do not apply.

Baltimore Banner reporter Jonas Shaffer contributed to this article