The College Sports Commission’s NIL Go system is in a jam right now, mostly because there’s been a rush of a certain kind of Name, Image, and Likeness (NIL) deal. These deals are crafted to get around the House v. NCAA settlement rev-share cap, and, honestly, they’ve clogged up the system.
Since NIL Go launched last June, the Commission has signed off on $166.5 million in NIL deals. There’s still $29.3 million worth of deals waiting for approval.
The main culprit? An uptick in deals involving “associated entities.”
The Rise of Associated Entity Deals
Associated entities—think multimedia rightsholders, boosters, NIL collectives, and official school apparel sponsors—are taking over the NIL scene. They’re looking to give athletes bigger financial incentives than what schools can offer through revenue-sharing.
The idea is to sweeten the pot for recruits by offering real money for NIL activities. It’s all about getting that edge.
How Associated Entity Deals Work
Usually, a multimedia rightsholder teams up with an athletic department to lock down sponsorship and licensing deals. They also help land NIL deals for athletes at their school.
For example, maybe a rightsholder gets a player a sponsorship with Chipotle, and the player gets paid to hype the brand on social media. Collectives or apparel partners can broker similar arrangements.
Between November and December, 54% of deals submitted for NIL Go approval involved associated entities. That shot up to 78% between January and February, which lined up with the football transfer portal period.
No surprise, the NIL Go system’s feeling the strain. Approvals are taking longer than anyone would like.
Challenges Faced by the NIL Go System
The NIL Go system was built by Deloitte just last year, but it wasn’t really set up for this kind of volume. The folks who made it figured only about 10% of deals would involve collectives or associated entities.
Turns out, most deals now are coming from those groups, not from unaffiliated companies. So, the software needs some serious tweaks.
Scrutiny and Fair Market Value
Deals from associated entities get extra scrutiny to make sure they’re playing by the rules. Each deal has to spell out how much money the athlete gets and exactly what they’re expected to do for it.
The pay has to be fair market value—meaning, you can’t just throw cash at a player for vague promises. Everything’s supposed to be above board.
This extra layer of review has really slowed things down. Sometimes, players even miss out on deals because of the wait.
The CSC’s aware of the problem and says they’re working on it, but honestly, there’s no quick fix.
Impact on Players and Schools
All these delays are having a real impact. Athletes have lost time-sensitive opportunities, and schools are struggling to keep their NIL programs running smoothly.
The CSC has started several investigations into unreported NIL deals. They’ve reached out to schools like Nebraska to sort things out through conversations, not penalties—at least for now.
Future Investigations and Participant Agreements
The CSC wants to do deeper investigations down the line. But, if schools don’t sign participant agreements, that’s going to be tough.
These agreements mean schools have to cooperate with investigations and accept penalties without fighting them in court. The last versions got pushback from schools and state attorneys general, so the CSC’s drafting new ones.
Without signed agreements, enforcing NIL rules will be a slog. It’s not impossible, but it’s definitely slower and more frustrating for everyone involved.
The Role of House v. NCAA Settlement
The House v. NCAA settlement set a cap on revenue-sharing, but it didn’t put any limits on third-party NIL deals—so long as they’re fair market value and not just pay-for-play in disguise.
Most of these third-party deals are coming from associated entities, which is exactly what’s bogging down the NIL Go system right now.
Ensuring Compliance and Fairness
The CSC says they’re committed to making sure NIL deals follow the rules and pay athletes fairly. That means every associated entity deal gets a close look, which, yeah, slows everything down.
They’re trying to update the NIL Go system to handle the new workload and complexity. There’s a lot to fix, and it’s a work in progress.
Conclusion
The College Sports Commission’s NIL Go system is under a lot of pressure lately. There’s been a big spike in associated entity deals.
These deals are mostly set up to get around the House v. NCAA settlement rev-share cap. As a result, the system’s gotten a bit jammed up, and deal approvals are moving slower than usual.
The CSC is trying to fix things by tweaking the NIL Go system. They’re also focused on making sure everything lines up with NIL regulations, but it’s a work in progress.
If you want to dig deeper, check out the original article on Front Office Sports.
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