On January 8, the College Sports Commission (CSC) issued guidance in direct response to a recent news report from Yahoo Sports that examined college football student-athletes being offered third-party NIL deals that violate the terms of the House settlement — making promises of third-party NIL money that does not yet exist — designed to induce transfers or retain players.

As discussed in prior blog posts and podcast episodes, the House settlement expanded NIL opportunities for all Division I student-athletes by creating a revenue share/benefits pool where schools could directly pay their student-athletes. However, as we approach the end of the first Division I college football season and opening of the transfer portal, there are reports that many schools, student-athletes, and athletics departments are taking advantage of some ambiguities within the House settlement rules.

This blog post will explain the recent CSC guidance on third-party NIL deals, including deals with a school’s multimedia rights (MMR) partners, and the likelihood of enforcement actions as a result.

CSC’s Warning on Third-Party and MMR Deals

The CSC issued guidance expressing concern that student-athletes are being offered third-party NIL deals that do not comply with the rules arising from the House settlement.[1] While the CSC framed this issue within the context of recruiting or retention inducements — which may also run afoul of the NCAA’s tampering rules — the CSC expressed “serious concern” with the deals being reportedly offered and the consequences (i.e., loss of eligibility) for the parties involved, especially student-athletes.

At the heart of the CSC’s guidance is a focus on substance over form or labels in evaluating third-party NIL deals. Notably, the CSC offered the following “warning”:

A contract between a student-athlete and an MMR partner (or anyone else) to pay the student-athlete for their NIL is an NIL contract and must be reported, even if the MMR partner plans to find other sponsors to pay for and activate the NIL.

Thus, regardless of how the contract is labeled — “agency agreement,” “services agreement,” or otherwise — if an entity agrees to pay a student‑athlete for their NIL, the agreement is an NIL contract and must be reported to NIL Go within the reporting deadline. In clarifying that MMR partners and similar entities are not exempt from reporting requirements, the CSC underscored that the form and labeling of a contract cannot serve as a workaround to NIL rules.

The CSC also clarified that MMR or other partners are considered associated entities or individuals, and any deal between these entities/individuals and a student-athlete requires “direct activation” of their NIL rights. Specifically, acquiring these NIL rights requires a “reasonable specificity of activation” — i.e., these deals require, but are not limited to, a description of the specific group licensing categories, the student-athlete’s obligations related to the activation, and timing and ultimate use of the student-athlete’s NIL. Without this “reasonable specificity,” these NIL deals may not satisfy the requirements for payments by associated entities or individuals under NCAA Bylaw 22.1.3.

Enforcement on the Horizon

In a sign that NIL oversight is intensifying, the CSC cautioned schools that investigations into unreported third‑party NIL arrangements are underway and that certain institutions will soon receive notice of potential concerns. Although not directly stated, enforcement will likely focus on correcting the perceived exploitation and inducement of student-athletes via third-party NIL deals. In short, schools and athletics departments should consider auditing all MMR or associated-entity agreements to ensure clear NIL activation plans as the CSC suggests.

The nature and scope of future enforcement and penalties remain to be seen, as the CSC has not yet imposed any penalties. However, interested stakeholders should take its warnings seriously, considering its recent hiring of notable former prosecutors.

[1] The CSC letter issued a reminder to interested stakeholders that all third-party NIL contracts or payment terms with a total value of $600 or more must be reported to NIL Go within five days of execution. This deadline is extended to 14 days for high-school and incoming Division I transfer student-athletes.