Round 1 Goes to the Collectives

As we approach week 1 of the 2025 football season, the fight for control of billions of dollars of NIL money has really heated up. It started when the College Sports Commission (CSC), the new entity established by the power conferences to oversee and regulate NIL revenue, issued a ruling that collectives cannot serve a “valid business purpose”. As that is the bedrock of a valid NIL deal, it was safe to assume that any deal submitted to the clearing house (NIL Go) from a collective would be denied.

Attorneys representing the House settlement and Collectives responded with exactly as you would expect, and shortly after the new policy was announced, both sides shared that conversations to reach an agreement had begun.

Last month both sides made a deal. According to recent reports, NIL collectives will be classified the same as other “valid” businesses by the NIL Go clearinghouse. That’s a big win for the collectives. It also calls into question the idea that the $20.5 million revenue-sharing cap will have an impact on the NIL spending free for all over the past four years. The deals from collectives will still be subject to the “range of compensation” limit that was set by the CSC, but it does clear the way for collectives to use their money to increase spending above the revenue-sharing cap.

One reason the CSC was needed was to manage and eliminate “pay for play” NIL deals where large amounts of money were paid to athletes simply for showing up at events, shaking hands, or signing autographs. By classifying collectives the same as Nike, Adidas, or the local pizza shop, it really takes the teeth out of the policy. If a private business wants to pay an athlete $100,000 to post about them on social media, it’s their right to do it. Based on that logic, if a collective wants to pay a player $1,000,000 to go to a golf outing, sign autographs, and pose for pictures, in theory, that’s perfectly acceptable.

It also creates the likelihood that the inequity in athlete compensation will widen even more. Collective deals tend to focus on the highly marketable, big-name talent: which translates into football, men’s basketball, and women’s basketball.

This battle is far from over. It will take time to determine the impact of House and the new world order it created. Until then, the value of NIL deals is still growing, with no end in sight.

CSC & NIL Go are struggling to approve deals quickly

NIL Go, the software tool developed by Deloitte, designed to facilitate the submission and approval of NIL deals for all of D1 athletics, is not meeting the very low expectations that were set after the House settlement was approved.

The CSC and NIL Go are mostly under the control of the Power Four Conferences, so at first glance one would think they would be very focused on moving deals quickly through the process. But according to multiple outlets, it is taking days, if not weeks for deals get approved.

These delays can cost athletes potential NIL revenue. If the athlete does not receive approval by the time an event takes place, the student loses out on the offer. One of the biggest challenges is the sheer volume of deals. For D1 schools who opted-in to revenue-sharing, any deal over $600 must be submitted for approval. The CSC and NIL Go have already approved thousands of deals, but there are plenty of stories about deals stuck in limbo for weeks. If the athletes can delay activity until they have approval it may not be a big deal. But if you have a deal that needs quick approval, like a viral moment from a game that a player wants to capitalize on, or has a short deadline, they may lose out in income.

There is a chance this is simply growing pains, and the CSC and NIL Go will learn as time passes and become more efficient. As the guidelines and rules for NIL become ingrained in the culture of college sports, it will be critical that there is a transparent, efficient process to vet and approve the deals.

NCAA Considering Adding Reporting for HS and JC Athletes

Now that over 80% of states allow high school athletes to receive NIL compensation in some form, the NCAA is taking a look at requiring high school athletes to submit deals over $600 to the NIL Go clearinghouse.

High school athletes would have to report all deals dating from the first day of their junior year. Juco athletes would have to report deals made after their first day of enrollment at a two-year college.

There are a lot of moving parts to this proposal. Apart from the fact that these athletes are not governed by the NCAA, there is little clarity on what kind of disciplinary action would take place for violations. It’s not hard to imagine the myriad of lawsuits that would be filed if the NCAA started pulling eligibility for high school athletes because of compensation they legally received in high school.

The biggest challenge for the NCAA at all levels is preventing “pay for play” deals that do not provide any real value to the individual or business. They are simply trying to buy the best talent for their school or program. With House going into effect and the CSC and NIL Go vetting deals, it has put a squeeze on collectives and boosters who were doling out millions of dollars for very little in return.

This change has pushed the focus downstream. It’s now easier to pay high school and Juco athletes before they sign with D1 schools, as the rules governing NIL are managed by state legislatures and state athletics organizations. NCAA rules do not allow direct contact with high school athletes prior to the beginning of their junior year, but there is no restrictions on boosters or collectives from making deals. It may seem ridiculous to think that sixteen year olds may start to get paid hundreds of thousands of dollars, but with the ranking and prospect databases, it’s not that hard to figure out who will be the top talent in a couple of years. Don’t forget these athletes are under eighteen, so the offers will go to their parents rather than directly to the athlete.

There is still a lot of work to do before the NCAA can seriously consider trying to regulate NIL outside of D1. The CSC and NIL Go are struggling to approve deals quickly, just with D1 schools. As much as it may make sense to try to regulate high school NIL, it may be too much, too fast to do it now.

Back to School 101

No matter if it’s Day 1 or your senior year, follow these tips to be ready:

As an athlete returning to school or an incoming freshman just getting started, these fundamentals will serve you well both on and off the playing field.

Be Prepared. As an athlete, show up in shape and ready to work. As a student, show up ready to learn.

Be Coachable. Feedback from your coaches and your professors are critical to success in college. Stay open to feedback and pay attention! The expectations are higher and the demands are greater.

Grow as a Person. Every year is different. You will be uncomfortable, so get used to it. Growth comes from broadening and learning from the changes happening around you.

NIL & Personal Brand. It’s never too early or too late to build your brand and sign NIL deals. It doesn’t matter if your are in a power conference or D3, NIL is available to everyone, but you have to make it happen!

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