Monday, October 19, 2026

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

Oct 15, 2026; Los Angeles, California, USA; Milwaukee Brewers players celebrate after winning the NLCS for the 2026 MLB Playoffs against the Los Angeles Dodgers at Uniqlo Field at Dodger Stadium.

World Series Game 1 Tickets Reach Super Bowl Level Prices

Get-in pricing for Friday’s Game 1 is nearing $3,000 per ticket.

WNBA Finals Goes Hollywood With ‘Orange Carpet’ Show

E! is bringing red carpet coverage to Game 2 of the Finals.
podcast thumbnail mobile
Front Office Sports Today

10/19/26 – NBA Limits Prop Bets, Michigan Benches Underwood, Upsets Shake CFB

0:00

Featured Today

College Flag Football Is Outgrowing Its DIY Era

Women have been building the college game themselves at the club level.
Oct 5, 2026; Pittsburgh, Pennsylvania, USA; Pittsburgh Penguins general manager Kyle Dubas arrives at the arena before the Penguins host the Winnipeg Jets at PPG Paints Arena
October 12, 2026

NHL’s New Wave of GMs Is Built Different

“I am in the prediction business,” Devils GM Sunny Mehta tells FOS.
Action Images/Peter Cziborra
October 9, 2026

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.

Big-Money Upsets Shake Up College Football

Half of the AP Poll top 10 lost in a single day.
October 17, 2026

CFP Expansion Could Raise Stakes for Coaches, Buyout Costs

Nick Saban warns more playoff spots could mean more firings.
October 17, 2026

Michigan Benches Its Multimillion-Dollar Quarterback

Underwood’s benching comes after two first-half interceptions.
Sponsored

Why Brands Are Betting On Major League Soccer

Discover why brands are investing in MLS as the league builds on World Cup momentum to drive fan engagement and sponsorship growth.
Ohio Gov. Mike DeWine delivers a statement condemning the death penalty during a news conference at his office in Columbus on June 16, 2026.
October 16, 2026

NCAA Sues Ohio Governor Over Fifth-Year Eligibility Order

Ohio Gov. Mike DeWine signed the executive order Tuesday.
Oct 9, 2026; Provo, Utah, USA; BYU Cougars head coach Kalani Sitake walks off the field after a win over the Iowa State Cyclones at LaVell Edwards Stadium. Mandatory Credit: Aaron Baker-Imagn Images
October 15, 2026

BYU Outperforming Its Budget As Notre Dame Showdown Arrives

Cougars coach Kalani Sitake has openly pushed for more resources.
Head Coach Curt Cignetti heads in during The Walk before the Indiana versus North Texas football game at Memorial Stadium on Saturday, Sept. 5, 2026. Brian and Amy were the hosts, middle two in frame.
October 15, 2026

Indiana’s Title Windfall Meets Its Biggest Home Game in History

A new jersey patch extends Indiana’s run of sponsorship deals.
October 15, 2026

Matthew Mayich’s Family Rips Coach Exit as ‘Negotiated Agreement’

Arizona State and Greg Powers “reached a mutual agreement to part ways.”