High-level college athletics put an end to its longstanding amateurism policies last week, leaving administrators at schools like Ole Miss and Mississippi State to find a way forward under the new order.

The NCAA, Power Five conferences and lawyers representing plaintiffs in three antitrust cases agreed to a settlement that will obligate the NCAA to backpay nearly $2.8 billion in damages for current and former college athletes. The same agreement, which still requires the approval of a judge, will require universities to begin sharing revenue with their athletes ‒ with fall of 2025 reportedly targeted as a start date.

What do these changes mean for Ole Miss and Mississippi State? Here's a look at three big questions facing both schools.

How will Mississippi State, Ole Miss handle the additional expense?

The athletic departments at both Ole Miss and Mississippi State operated at deficits in the most recent reporting year. The Rebels lost more than $8 million, with the Bulldogs' revenue report outlining a loss in excess of $5 million.

Now, the NCAA will be reducing its distributions to schools to help pay the $2.8 billion in damages it owes as a result of the settlement. It says 24% of that $2.8 billion will be made up for by distribution reductions to schools like Ole Miss and Mississippi State.

The initial revenue distribution cap is expected to be at least $20 million, increasing in proportion to athletic department revenues over time. For context, Mississippi State spent roughly $121 million total in the most recent fiscal year. Ole Miss spent about $150 million.

Both institutions face a challenge when it comes to balancing the budget with the sizable new costs.

Ole Miss athletics director Keith Carter outlined the approach he'll take during an interview with The Clarion Ledger in January.

"Are you asking your development staff to raise money in a different way?" Carter said. "We're always looking for new revenue sources. Obviously, a worst-case scenario is you have to downsize your sports. You have to figure out what makes sense. If the industry of college athletics becomes more businesslike, you may have to start running it more like a profit-loss business.

"That is a worst-case scenario. Nobody in college athletics wants to do that, take opportunities away from college athletes. As we go through this model, everything's on the table."

How does this change impact Ole Miss, Mississippi State NIL?

The college football roster construction economy has been driven by name, image and likeness payments since they were made legal in the summer of 2021. Some NIL payments are endorsement deals, with athletes receiving compensation in exchange for advertising a product. Others more closely resemble outsourced pay-for-play, with outside collectives affiliated with each school paying players to join their program.

With a settlement reached and a revenue-sharing cap proposed, there are questions as to whether the NCAA can restrict supplemental NIL payments as a means to circumvent a salary cap.

At Ole Miss, in particular, an aggressive collective has helped drive unprecedented football success. The Rebels won 11 games in 2023 for the first time ever.

"College athletics is evolving and some much needed balance is coming," Walker Jones, who runs the Rebels' collective, posted on social media last week. "Ole Miss athletics and (The Grove Collective) will be at the forefront of this evolution and are well positioned to lead and compete at the highest level."

At Mississippi State, second-year athletic director Zac Selmon took charge amid an NIL surge sparked by the departure of former AD John Cohen.

“We’ve put ourselves in a position to be successful," Selmon told The Clarion Ledger after 2023 football season. "Successful doesn’t mean reckless, too. Some schools, I think – or some collectives, some NIL boosters, however you want to define them – have been reckless. And a lot of times reckless without any backing.”

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How do Rebels, Bulldogs prioritize their revenue-sharing budget?

Though the future of NIL is unclear, it seems certain that college athletics is headed toward a salary cap.

If each university can distribute around $20 million to its athletes annually, how much of that is spent on football? Men's and women's basketball? Baseball?

It's a challenging question, particularly for Mississippi State and Ole Miss, which have priorities that might not align with their peers. The Bulldogs and Rebels are two of the proudest baseball programs in the country. Do they take money out of football's budget to spend on baseball? Or do they invest everything they can in football, which is likely to remain the most financially competitive space?

Revenue sharing and women's sports at Ole Miss, Mississippi State

And what say will Title IX have in how the money gets allocated?

The federal gender equity law adds another factor for athletic departments to consider as they slice up the pie.

Women’s basketball operates at a deficit at both Ole Miss and Mississippi State, though the NCAA could soon begin distributing unit payouts which could change that picture.

The Rebels have won three NCAA Tournament games in the last two seasons, and pay their coach, Yolett McPhee-McCuin, over $1 million annually. Mississippi State has been to the Final Four twice since 2017.

David Eckert covers Ole Miss for the Clarion Ledger. Email him at deckert@gannett.com or reach him on Twitter @davideckert98.

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This article originally appeared on Mississippi Clarion Ledger: What revenue sharing means for Ole Miss, Mississippi State football