The landscape of college athletics has seen a seismic shift with the NCAA’s decision to let student-athletes monetize their names, images, and likenesses (NIL). This change has upended old notions of amateurism and brought in a brand new set of challenges.
The College Sports Commission (CSC) now oversees NIL compliance. Its early efforts, though, have been rocky at best.
This blog pokes into the NCAA’s NIL policy, the CSC’s role, and the hurdles everyone’s facing as the dust settles.
The Evolution of NCAA Amateurism
The NCAA’s move to let athletes profit from their NIL is a dramatic break from its old model of amateurism. This shift really took off after the class settlement in House v. NCAA, which challenged how student-athletes were blocked from earning money.
The settlement didn’t just open the door for NIL deals. It also brought in revenue sharing, which has changed the financial game in college sports.
Revenue Sharing and Its Implications
The House settlement set up a damages fund for NIL backpay and future compensation through revenue sharing. Schools that chose to be part of the settlement have to share revenue, starting at $20.5 million in the first year, with a percentage increase in later years.
The typical split looks like this:
- 75% to football
- 15% to men’s basketball
- 5% to women’s basketball
- 5% to other sports
This breakdown matches the damages model in the settlement. Unlike revenue sharing, NIL payments can come from all sorts of sources—schools, collectives, or outside businesses.
The Role of the College Sports Commission
The CSC is a new enforcement entity handling NIL compliance. It uses NIL Go, a clearinghouse, to review and approve NIL deals.
That said, the CSC’s early days have already drawn plenty of criticism.
NIL Go: The Clearinghouse
NIL Go is supposed to make sure NIL deals are tied to real business purposes, like promoting goods or services. The CSC reviews deals to weed out pay-for-play setups and tries to keep payments in line with market rates.
They look at a bunch of factors, including:
- Deal deliverables
- Athletic performance
- Social media reach
- Local market reach
- Institution or program market reach
- External benchmarks
But using athletic performance as a metric? That’s raised eyebrows, since it could clash with the CSC’s whole mission to avoid performance-based payouts.
Early Enforcement Challenges
The CSC’s first report on NIL deals was riddled with errors. On Sept. 4, they reported clearing 8,359 deals worth over $80 million.
The next day, those numbers were walked back to just 6,090 approved deals totaling $35.42 million. That’s a pretty big swing, and it’s left folks doubting the CSC’s grip on things.
Timeliness is another headache. Delays have caused athletes to miss deadlines or lose out on deals entirely.
Word is, over $10 million in deals are still waiting for approval—some for weeks. To get around the slowdowns, some collectives have started paying athletes before deals get CSC approval, which just muddies the waters even more.
Legal and Operational Concerns
The CSC’s power to decide what counts as a valid business purpose in private deals has stirred up legal worries, especially around labor and antitrust laws. Some critics argue the CSC’s methods could repeat the very mistakes that led to the House case in the first place.
Staffing and Resource Constraints
With just seven employees, plus help from Deloitte and outside lawyers, the CSC is stretched thin. This lack of manpower slows down deal reviews and weakens enforcement.
To make up for it, the CSC has set up a tip line for anonymous reports and leans heavily on the threat of postseason bans to scare folks straight.
Emergency Legislation and Compliance
Trying to plug the leaks, the NCAA Division I Board of Directors passed an emergency bylaw amendment on Oct. 28. Now, schools have to report any failures to the CSC within two business days.
If they miss that window, the athlete is ruled ineligible until the deal gets reported. It’s supposed to keep everyone on their toes, but it’s also made the NIL landscape even more stressful and confusing.
Looking Ahead: Preparing for the Future
The CSC is still finding its footing as the new top cop for NIL. Stakeholders should brace for tighter enforcement and more rules.
The NCAA seems ready to back the CSC with emergency legislation. Down the line, penalties could mean postseason bans, eligibility problems, transfer restrictions, or even fines.
It’s clear that following compliance guidelines matters, even if the definition of “compliant” is still a moving target.
Long-Term Risks and Strategic Considerations
Professionals representing players, schools, or collectives need to think carefully about long-term risks. Taking quick chances might seem tempting, but it can backfire down the road.
The NIL landscape keeps shifting. Staying compliant isn’t just about following rules today—it’s also about avoiding headaches tomorrow.
For more detailed insights, you can read the full article on the NCAA student-athlete pay deal.
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