LOUISVILLE, Ky. (WDRB) -- The alarm clock just went off in college athletics. And it's ringing at a very specific volume: $20.5 million.

That's the new number keeping athletic directors up at night — the amount schools can now pay athletes annually in direct compensation under the NCAA's House settlement, beginning July 1. It's not mandatory. But if you want to compete, it's not really optional, either.

And the sun is rising on that challenge — with schools you might not expect already projecting deficits.

Michigan , for instance, saw a $27 million shortfall coming and trimmed athletic department staff by 10%, slashing other expenses to bring that number down to $15 million.

Last week, Kentucky — a program that has been self-sufficient for more than a decade — announced an expected $31 million deficit over the next two years. The university will cover the shortfall while committing $110 million to revenue-generating ventures in athletics.

And these are schools in the most lucrative conferences: the Big Ten and Southeastern Conference.

In the Big 12, Kansas said its athletic department may no longer be able to cover tuition or housing costs for athletes — reversing a long-standing practice. Elsewhere in the Kansas system, Wichita State passed a 3.5% tuition increase, with athlete pay listed as one reason for the hike.

In Florida , where state law prohibits general fund money from being used for athletics, lawmakers are working on a resolution to let schools tap into auxiliary revenue — things like bookstores and parking — to cover the new expenses.

Virginia has been aggressively building scholarship endowments to prepare for this moment.

And in Louisville ? We should get more light this week.

What's most remarkable about all this isn't that college athletes are finally being paid — it's how different the approaches are from one school to the next.

No two schools are taking the same path. But they're all moving in the same direction: toward a world where athletes are compensated directly, and where old revenue models don't come close to covering the cost of doing business.

This isn't just a burden for the so-called "have-nots." Even top-tier programs — schools with $200 million budgets, massive TV deals, and sold-out stadiums — are recalculating what they can afford.

And it's not just about money.

The House settlement replaces scholarship caps with roster limits, opens the door to new lawsuits, and hands off enforcement to a new College Sports Commission. Starting July 1, NIL deals over $600 must be vetted by Deloitte, not the NCAA, for "fair market value."

For all the talk of clarity, most athletic directors seem to be operating with a half-finished playbook.

But there's no turning back. July 1 is coming. Checks are being written. Athletes are becoming employees in all but name. And universities are learning that the price of progress is steep, messy — and very, very real.

Quick Sips

Louisville baseball advances in the College World Series, with a bit of inspiration from Muhammad Ali. Read my column here .

Congrats to all the teams in last weekend's state championship games in Lexington. Assumption captured the school's first state softball title , while Trinity knocked off defending champion PRP to win the state baseball crown .

And yes, Rick Bozich is retiring . The news broke last Friday, but some of us are still getting used to the reality — me more than most. I've worked with Rick for the past 25 years and known him for 35. Here's my story from last week, and we'll have more to say, I'm sure, as the days tick down.

The Last Drop

"I can bring the Saban out of me with the best of them. As a coach my age, that's just who I grew up watching and admiring — the Krzyzewskis and Sabans and Parcells — so I definitely have a little bit of old school in me. I love on the kids. … But when I'm not happy, they're going to know."