American Conference Sets Powerful League Standard for Tulane in Revenue Share

The AAC becomes the first league in college football to set an important standard ahead of revenue sharing for Tulane Green Wave.

Kim Klement Neitzel-Imagn Images

American Athletic Conference commissioner Tim Pernetti has been proactive in his efforts to keep the Group of 5 league competitive in college football.

The AAC announced a landmark standard on Friday for the conference that sets the Tulane Green Wave football team up to thrive in the NIL era of revenue sharing in the impending House settlement.

Ross Dellenger of Yahoo Sports reports that they will establish a minimum standard of benefits that all AAC schools will be required to meet and share with their athletes as the first NCAA league to approve such an initiative.

That minimum — as part of the “Minimum Investment Program” — is at least $10 million in cumulative benefits beginning in the 2025-26 academic year, over a three-year period.

Pernetti was the driving force behind the standard and spoke with Yahoo Sports about the critical moment in the American conference’s history.

“This action is another indication for how the American differentiates itself from its peers,” Pernetti said. “We are committed to differentiating the American in every way we can, and we are committed to delivering an unrivaled experience for student-athletes and positioning our members in the best place for the future of college athletics.”

As Dellenger reports, schools can reach the requirement through a combination of benefits that the antitrust lawsuit is set to award, should it be approved this spring.

The settlement will allow for schools to provide scholarships for full rosters and also share what is projected to be up to $20.5 million annually with their student athletes.

The American’s Minimum Investment Program has a three-prong tool for additional benefits; up to $2.5 million in new scholarships, direct revenue sharing and up to $2.5 million in Alston payments.

Should schools fail to meet that standard at the end of the 2027-28 academic year, they may have to submit to a “review” of membership status, the process of which is not disclosed. 

Importantly, the Army Black Knights and Navy Midshipmen are not subject to these standards, as they are proscribed from opting into the settlement due to federal funding.

Pernetti and the conference brought on Huron Consulting Group to review the league and set an appropriate standard and timeframe for doing so. As long as schools meet the $10 million minimum in a three-year span, the conference won’t police how it’s distributed.

That provides a level of flexibility and independence that is rare at the Group of 5 level; one often subject to the guidelines set by Power 4 schools with not much inclusion in the conversation.

Pernetti took the reins of how his Group of 5 conference will move forward this time, signifying an unprecedented level of investment by the league in college sports.

That minimum is one Pernetti believes many schools plan to exceed, and it’s hard to imagine Tulane football not being one of them.

As the Pac-12 continues to encircle the conference favorites, the American is ensuring that it’s an attractive destination and one that is primed to compete in this era for the College Football Playoff.