How Penn State Is Capitalizing on the New Era of College Hockey

After their Frozen Four run, the Nittany Lions are competing for some of the game's top talent, including potential No. 1 pick Gavin McKenna.

The Penn State Nittany Lions celebrate their win over the Michigan Wolverines in the Big Ten Men's Hockey Tournament. | Brian Bradshaw Sevald-Imagn Images

In November 2024, the NCAA Division I Council changed the landscape of college hockey forever by permitting Canadian Hockey League (CHL) athletes to compete in NCAA games. The new rule takes effect Aug. 1, and college teams are positioning themselves to sign the best young players from the CHL.

What does this mean for Penn State hockey, and how are the Nittany Lions approaching their post-Frozen Four future? Here's a look at how Penn State seeks to capitalize on the influx of new talent into college hockey.

RELATED: Penn State left the Frozen Four hopeful about its future

New talent pours into NCAA hockey

Between the ages of 16-20, players with NHL aspirations often choose one of two routes to develop and prepare for professional hockey. Athletes may choose the CHL, where the premier junior hockey players of the world compete before their transition into the NHL. Or they might commit to an NCAA program. 

While college hockey churns out professional players every year, the talent difference between the NCAA and the CHL is substantial. Twenty-one CHL athletes were selected in the first round of the 2025 NHL Entry Draft, compared to just five from NCAA programs.

Before the new legislature, players who signed CHL deals couldn’t begin their playing careers in Canada and then transfer to the NCAA. But now, CHL players are flooding into college hockey, making it a prime spot for NHL prospects to develop.  

Penn State adapted to the new circumstances almost immediately, bringing in six CHL athletes: Jackson Smith, Shea Van Olm, Lev Katzin, Luke Misa, Nolan Collins and Joshua Fleming. And the Nittany Lions are looking for more, having been linked to Gavin McKenna, the projected No. 1 overall pick of the 2026 draft.

The deal has changed college hockey forever as more top-end talent will commit to NCAA programs, leading to higher traction for the sport. 

Revenue sharing plays a big role

In June, Judge Claudia Wilken approved the $2.8 billion House v. NCAA settlement regarding payments to former, current and future players. The settlement allows schools to pay athletes directly, which gives the NCAA an advantage on the CHL. 

The CHL provides players with stipends and benefits, arguing that they’re amateurs, similar to the former NCAA position. Through revenue sharing, some NCAA programs can offer players higher earnings. 

Penn State has not released its revenue-sharing breakdowns, including how much men’s hockey will receive, but coach Guy Gadowsky appears to have access to funding that allows him to offer some of the top CHL prospects. Generally, Penn State believes it is well-positioned to take advantage of revenue sharing beyond football, as Athletic Director Pat Kraft has said.

"We're trying to be able to manage the money so that if we need to move on someone, no matter what the sport is, we have the ability to say, 'Hey, there's the No. 1 fencer in the world, and we need to go use rev share to maybe tilt it our way,'" Kraft said. "We're going to be able to do that."

“I appreciate how much love [Penn State] showed me throughout the process…The way they play and how I play, I think it’s a great fit!”

Caught up with our newest Nittany Lion and first round draft pick Jackson Smith at @BlueJacketsNHL Dev Camp this week!#WeAre #HockeyValley pic.twitter.com/esob37P9yu

— Penn State Men’s Hockey (@PennStateMHKY) July 3, 2025

How Penn State is capitalizing on college hockey’s new era

Penn State is pursuing some of the top young prospects in hockey. The Nittany Lions received a commitment from Smith, who became the program’s first player to be a first-round pick in the NHL Entry Draft. Penn State also reportedly has been connected with Porter Martone, the Philadelphia Flyers' No. 6 overall pick of the draft, and McKenna, the consensus top player of the 2026 NHL Draft cycle.

Dating to June, the McKenna sweepstakes reportedly has been a two-team race between Penn State and Michigan State. Sportsnet’s Elliotte Freedman Friedman mentioned Penn State as McKenna’s most likely destination on the 32 Thoughts hockey podcast. Hockey journalist Frank Servalli further reported that McKenna recently visited State College. McKenna could announce a decision at any time.

While Penn State is an attractive destination following its Frozen Four run, the program's ability to offer Smith and other athletes competitive deals has contributed to its offseason success. Combined with the lessons his team learned last season, Gadowsky said he is "very optimistic" about Penn State's future.

"It's not just a lesson in hockey for next year ... but it's a lesson that these guys are going to carry with them well beyond Penn State and also well beyond hockey," Gadowsky said after the Frozen Four. "It's true. You can talk about it as much as you want: 'Oh, that's the way to do things.' But when you're really faced with a challenge and you're really in a down spot and you pull each other together and lift each other up and you see success, it's something you don't forget. For not only because of the young talent but because of the lessons we learned, yes, I'm very optimistic about the future."