Saturday, October 10, 2026
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds

The House v. NCAA Settlement Probably Won’t Kill NIL Collectives

  • The House v. NCAA settlement proposal would put unprecedented restrictions on name, image, and likeness collective deals.
  • Industry stakeholders tell FOS they believe the restrictions themselves would lead to more lawsuits.
Tennessee's Christian Moore (1) doesn't like the strike call while batting during a NCAA College World Series game between Tennessee and Florida State at Charles Schwab Field in Omaha, Neb., on Wednesday, June 19, 2024.
Brianna Paciorka/News Sentinel

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

The biggest headline coming out of the settlement proposal for the House v. NCAA class action lawsuit over name, image, and likeness rights is the potential for a revenue-sharing agreement between schools and players. 

But the 300-page proposal also includes an entire section that would hand unprecedented control over name, image, and likeness deals to the NCAA. The goal: to weed out NIL deals considered “pay-for-play,” where NIL collectives and boosters offer astronomical sums in exchange for miniscule marketing activities. 

Experts and industry stakeholders, however, tell Front Office Sports they don’t believe the settlement’s new NIL restrictions will hold up. 

Here’s what the settlement is proposing:

  • Boosters and collectives would be able to only offer deals to athletes that reflect an athlete’s “fair market value.” The definition: “a valid business purpose related to the promotion or endorsement of goods or services provided to the general public for profit, with compensation at rates and terms commensurate with compensation paid to similarly situated individuals with comparable NIL value who are not current or prospective student-athletes at the Member Institution.”
  • To police this, the NCAA would set up a third-party clearinghouse, the NCAA would require every Division I athlete to submit potential NIL deals that are more than $600 for approval.
  • Athletic departments would also be allowed to bring their NIL collectives in-house, to act as athletic department employees procuring deals for players. In this scenario, departments could more strictly control the actions of their collectives—and they could be subject to more regulations, like the Title IX gender equity statute.

But experts and industry stakeholders tell FOS they’re doubtful the NCAA would be as successful as it hopes in stunting collectives—or killing them altogether. Some collective operators have said they expect some of these terms to be changed during the court of the settlement approval process. 

But even if those terms stay the same, the NCAA may not get the control it seeks.

The clearinghouse, for one, may create more problems than solutions. Who will be tapped to oversee it? Which entities could legitimately decide the “fair market value” of an athlete? Will this create a new set of legal scrutiny for the NCAA, which has been attacked in court for trying to police NIL deals?

“The NCAA is again restricting an athlete’s ability to fully monetize himself,” James Clawson, cofounder of Tennessee NIL collective The Volunteer Club, tells FOS. “I think that’s just going to open up more lawsuits.”

Lawyers seem to agree. The terms of the settlement—especially the ones that look like they would normally be negotiated through a collective bargaining agreement—could be challenged in court, according to sports attorney and New York Law School professor Dan Lust. “Short of players having representation at the table, as much as [the House settlement] might be an endeavor that’s a step in the right direction … you’re still acting in some way that could be viewed as anticompetitive.” 

Technically, the athletes who sign on to the settlement won’t be able to sue, according to sports attorney Mit Winter. But the brands and collectives offering most of the deals could. They’re not signing on to any of the NCAA’s NIL restrictions. “If you’re a third party, this settlement has zero binding effect on you at all,” he says.

The clearinghouse isn’t just a problem for athletes and collectives. Lust also agrees brands could have concerns about handing over their contracts, which often include confidential terms, to a third-party arbitrator. After all, there’s no clearinghouse for NBA, NFL, or MLB player sponsorships.

It’s unlikely the NCAA will be able to police collectives by enticing them to join athletic departments, either. Collectives want the freedom to to work with the departments they support, rather than under them. And schools don’t want the liabilities that come with bringing a collective into an athletic department, subjecting it to all the rules and regulations already complicating college sports. “I have not spoken to any athletic director or any deputy athletic director that wants an ‘in-house’ solution,” Russell White, president of The Collective Association, tells FOS.

Either way, the NCAA still faces an uphill battle in taking control of the landscape. “There are some positive things in the settlement that would be a great thing if they happen,” White says. “But by and large, I dont think it’s a great deal.”

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Belichick, UNC Score Biggest Win Yet After Rocky Offseason

Belichick’s revamped UNC roster is beginning to show signs of progress.
Arizona State hockey head coach Greg Powers speaks during a ribbon cutting ceremony at Mullett Arena in Tempe on Oct. 14, 2022.

ASU Hockey Home Opener Marred by Player Collapse Fallout

ASU’s hockey home opener featured more absences amid an ongoing investigation.

Georgia-Alabama Braces for Hurricane, Trump Won’t Attend

Alabama banned tailgating and all outdoor activities on campus before noon.
Mar 29, 2026; New Orleans, Louisiana, USA; LSU Tigers mens basketball head coach Will Wade looks on against the Houston Rockets during the first half at Smoothie King Center. Mandatory Credit: Stephen Lew-Imagn Images

LSU Finally Reveals 10-Player Roster in Will Wade’s Exhibition Return

The game offered a glimpse into which LSU players are eligible.
podcast thumbnail mobile
Front Office Sports Today

10/9/26 – MLB’s 154-Game Pitch, NFL Bets on SCOTUS, Shaq Says Barkley Isn’t Leaving

0:00

Featured Today

Action Images/Peter Cziborra

Is Leicester City’s $264 Million Price Tag Too Rich for Hungry Investors?

After falling from grace, how much is a former top club worth?
Oct 3, 2026; Starkville, Mississippi, USA; Alabama Crimson Tide head coach Kalen DeBoer waits to run onto the field prior to the game against the Mississippi State Bulldogs at Davis Wade Stadium at Scott Field. Mandatory Credit: Petre Thomas-Imagn Images
October 7, 2026

Who Is Alabama Football in Year 3 Under Kalen DeBoer?

The No. 6 Crimson Tide host No. 2 Georgia on Saturday.
Cubs behind the scenes
October 6, 2026

Hollywood and TikTok: Sports Media’s New ‘Blueprint’

Teams and leagues are pouring money into the quest for fans.
October 2, 2026

How the Baseball Cap Became a ‘Behemoth’

The hat has become essential for athletes, fans, and the sports-agnostic.
Morishita-Sato-homerun-celebration-at-Meiji-Jingu-Baseball-Staidum-2025
September 28, 2026

Japanese Baseball Is Fighting Back Against MLB Talent Drain

Nippon Professional Baseball is reimagining how to be a global juggernaut.
Oregon head coach Dan Lanning talks to Oregon quarterback Dylan Raiola on the sideline as the Oregon Ducks face the Oklahoma State Cowboys on Sept. 12, 2026, at Boone Pickens Stadium in Stillwater, Oklahoma.

How Oregon Beat College Football’s ‘Impossible’ Backup QB Market

Dylan Raiola will get the first start of his Oregon career on Saturday.
Farah O’Keefe NCAA
October 8, 2026

No. 1 Women’s Amateur Golfer Discusses Life As an ‘Infant Pro’

Farah O’Keefe won her first NCAA title in June.
Jan 20, 2026; Miami, FL, USA; College Football Playoff executive director Rich Clark during the CFP host committee handoff press conference at Marriott Marquis Miami. Mandatory Credit: Kirby Lee-Imagn Images
First at FOS
October 8, 2026

CFP Director Supportive of 24 Teams, Endorses College Sports Bill

Rich Clark said a potential 24-team Playoff would be “spectacular.”
Sponsored

Beyond the Scorecard: How Dow Is Putting Purpose at the Center of Women’s Golf

Discover how Dow and the LPGA are building a partnership with lasting impact.
October 8, 2026

ICE Has Detained Another College Basketball Player

A Chinese player at Mississippi Valley State was detained Sept. 29.
October 7, 2026

LSU Still Lists Just Four Players on Eve of First Exhibition Game

LSU still doesn’t list enough players to fill out a starting five.
October 6, 2026

Judge Orders ICE to Release College Basketball Player

The government has 24 hours to appeal the ruling.
Oct 3, 2026; Boulder, Colorado, USA; Colorado Buffaloes head coach Deion Sanders following a touchdown scored in the first quarter against the Texas Tech Red Raiders at Folsom Field. Mandatory Credit: Ron Chenoy-Imagn Images
October 6, 2026

Colorado’s Skid Renews Questions About Deion Sanders’s Roster Model

Colorado enters its bye week on a three-game losing streak.