The newly formed College Sports Commision, better known as the CSC, has released a letter rejecting several Name, Image, and Likeness (NIL) deals between college athletes and donor-backed collectives loosely linked to several schools1. It’s a strong first step for the infant agency, which was created to police NIL deals following the landmark House settlement. In many ways, the action may signify an end to the Wild West days of NIL.
The memo in question, released July 10, argues that the deals involving these collectives, which are not officially connected to the schools they sponsor, have no “valid business purpose,” and do not signify a direct relationship between the employer (the universities that the athletes would be attending) and the employee (the athletes themselves). Furthermore, the letter claims that the invalidity of many of these deals stems from the fact that NIL deals must provide the general public with an opportunity for profit2. With a sort of salary cap soon to become a facet of the collegiate athletics landscape, the letter represents a strong effort to limit spending outside of this salary cap, and is one of the first actions that appears to be a true effort at policing college sports.
Already, the letter’s release has had significant ramifications. Collectives related to Notre Dame, Alabama, Colorado, and Georgia have agreed to shut down, and some schools, such as Ohio State and Illinois, have announced plans to partner with a professional licensing company to negotiate their NIL deals. Technically, despite these developments, deals between an outside party and a potential student-athlete are still acceptable, but the fact that any outside deals greater than $600 require review and vetting by the CSC may make it difficult for outside parties to operate with any real influence or gravitas (AP).
However, acceptance of the CSC’s proclamation has not been uniform. Attorneys representing students in the House settlement case have declared that collectives must be treated as valid businesses, or else it’s back to court. In some ways, it’s almost amusing: after months and months of grueling negotiations to determine how student athletes would be paid, disagreements that could fundamentally transform the House settlement have already erupted3. There is no reason not to believe that this memo’s release may just be the first of many disagreements that will truly determine the future of college of sports.
- Eddie Pells, The New College Sports Agency is Rejecting Some Athlete NIL Deals with Donor-backed Collectives, AP News (July 11, 2025, 02:34 PM EDT) ↩︎
- Id. ↩︎
- Dan Wolken, NCAA Settlement for College Sports Already Facing Challenges. Was this the Plan All Along?, USA Today (July 17, 2025, 02:59 PM ET) ↩︎
Henry Bartholomew is a guest author who periodically contributes to the UB Law Sports & Entertainment Forum. The views and opinions expressed in this article are those of the guest author and do not necessarily reflect the official policy or position of the University at Buffalo School of Law or the UB Center for the Advancement of Sport.
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