US EditionDeal on ‘Valid Business Purpose’ Avoids Threat of College NIL Settlement Heading Back to Court
UNITED STATES COLLEGE SPORTS ENVIRONMENT, JUL 31 – The College Sports Commission eased restrictions on third-party NIL collectives to recognize valid business purposes and avoid further litigation, affecting thousands of athlete deals.
- On Thursday, the College Sports Commission revised its guidance to ease restrictions on deals between players and external NIL collectives, aiming to resolve ongoing legal disputes without returning to court.
- This update follows the June House settlement that allows schools to pay players directly up to a $20.5 million cap and introduced scrutiny on NIL collectives' valid business purposes.
- The CSC now permits collectives to pay athletes if the deal involves promoting goods or services sold for profit and requires documentation proving efforts to profit from these deals.
- CSC CEO Bryan Seeley emphasized that payments exchanged for athletic participation are not allowed, stressing that all NIL agreements with student-athletes need to be genuine endorsements rather than disguised compensation for playing.
- The guidance eased blocking collectives but left case-by-case evaluation in place, with attorneys warning the issue could return to court if disputes arise over valid business purpose compliance.
69 Articles
69 Articles
Deal avoids threat of sending NIL issue back to court
The new agency vetting name, image and likeness deals in college sports reached an agreement Thursday that relaxes standards on player agreements with third-party collectives and avoids taking the issue back to court after years of legal wrangling.
TimesDaily
Decatur DailyNIL resolution prevents more legal squabbles
The new agency vetting name, image and likeness deals in college sports reached an agreement Thursday that relaxes standards on player agreements with third-party collectives and avoids taking the issue back to court after years of legal wrangling.
Deal on ‘valid business purpose’ avoids threat NIL deal could return to court
The new agency vetting name, image and likeness deals in college sports reached an agreement Thursday that relaxes standards on player agreements with third-party collectives and avoids taking the issue back to court after years of legal wrangling.
Helena Independent Record
Deal on 'valid business purpose' avoids threat NIL deal could return to court
The new agency vetting name, image and likeness deals in college sports reached an agreement Thursday that relaxes standards on player agreements with third-party collectives and avoids taking the issue back to court after years of legal wrangling.
Lodinews.com
Statement from Class Counsel Jeffrey Kessler and Steve Berman Regarding Revised CSC Guidance for NIL Collectives
SAN FRANCISCO, July 31, 2025 /PRNewswire/ -- Today, the College Sports Commission (CSC) issued revised guidance on establishing a valid business purpose for names, images, and likenesses (NIL) payments to conform with the terms of the class action settlement on…
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