USC Trojans Preparing To Pay Student-Athletes Under NCAA Settlement

The USC Trojans are among the first major programs to restructure their athletic department in response to the NCAA’s multibillion-dollar settlement that will allow schools to pay college athletes directly. Will USC athletic director Jennifer Cohen find a sustainable financial model as Lincoln Riley’s football program remains the priority?

Nov 16, 2024; Los Angeles, California, USA; Southern California Trojans head coach Lincoln Riley watches game action against the Nebraska Cornhuskers during the first half at the Los Angeles Memorial Coliseum. Mandatory Credit: Gary A. Vasquez-Imagn Images | Gary A. Vasquez-Imagn Images

The USC Trojans have begun cutting athletic department jobs as the university prepares to pay athletes directly under the newly approved House v. NCAA settlement. Six USC employees were reportedly let go, and six additional vacant positions have been eliminated as the university anticipates distributing up to $20.5 million to student-athletes starting in 2025.

The move signals a significant shift in how USC plans to manage its athletic finances amid sweeping changes to the college sports landscape.

According to the Los Angeles Times, USC recently informed six athletic department employees that their positions were being eliminated, including executive senior associate athletic director Paul Perrier, a longtime administrator who had served under three different athletic directors across two stints with the school.

Nov 16, 2024; Los Angeles, California, USA; Southern California Trojans head coach Lincoln Riley watches game action against the Nebraska Cornhuskers during the first half at the Los Angeles Memorial Coliseum. Mandatory Credit: Gary A. Vasquez-Imagn Images | Gary A. Vasquez-Imagn Images

In addition to the layoffs, six unfilled roles were also removed in what sources described as a cost-saving measure tied directly to the upcoming financial demands of athlete compensation.

Rather than cutting entire sports programs, a step some universities have already taken, USC opted to reduce costs by eliminating 12 total positions within its athletic department. Athletic director Jennifer Cohen has committed to distributing the university’s projected $20.5 million in athlete revenue sharing across all 23 varsity sports, though the football program is expected to receive the majority of that funding.

Dec 27, 2024; Las Vegas, NV, USA; Southern California Trojans wide receiver Makai Lemon (6) catches the ball against Texas A&M Aggies defensive back Jaydon Hill (8) in the second half at Allegiant Stadium. Mandatory Credit: Kirby Lee-Imagn Images | Kirby Lee-Imagn Images

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The cuts come as schools across the country begin grappling with the financial realities of the NCAA’s new revenue-sharing model, which was finalized with the approval of the House v. NCAA settlement in early June.

Under the terms of the agreement, each Division I school will be allowed to directly distribute up to $20.5 million annually to student-athletes starting in 2025, with that figure expected to increase over the next decade. The payments are in addition to scholarships and other benefits athletes already receive.

While schools are not required to spend the full amount, USC plans to reach the maximum in its first year, positioning it firmly among the top-tier programs that have committed early to the new structure.

To offset the added costs, USC has pursued expanded revenue streams, including a recently announced 15-year multimedia rights partnership with Learfield and an advertising deal with DirecTV that placed signage in the Los Angeles Memorial Coliseum.

Nov 30, 2024; Los Angeles, California, USA; Southern California Trojans wide receiver Kyle Ford (81) carries the ball against Notre Dame Fighting Irish safety Jordan Clark (1) in the second half at United Airlines Field at Los Angeles Memorial Coliseum. Mandatory Credit: Kirby Lee-Imagn Images | Kirby Lee-Imagn Images

The contrast between USC’s groundbreaking NIL deal for Mark Bowman, and the recent job cuts within the athletic department underscore the complex financial balancing act the program faces. While USC is investing heavily to attract elite talent like Bowman, these commitments come amid significant cost-cutting measures behind the scenes.

Eliminating a dozen staff positions signals serious budget pressures, even as the Trojans allocate millions to player compensation. This tension reflects the broader challenges facing college programs as they adapt to the new era of athlete payments, where recruiting success requires sizable investments.

However, sustaining a full athletic operation demands tough financial decisions. USC’s leadership must now navigate these competing priorities while maintaining competitiveness and supporting its entire range of sports programs.