• Loading stock data...
Thursday, August 7, 2025
Tuned In returns to NYC on September 16. Hear from the biggest names in sports media. Click here to get your spot

Will the House v. NCAA Settlement Actually End ‘Pay-for-Play’ NIL Deals?

A memo obtained by FOS sheds new light on how the approval process will work for NIL collective deals. Industry experts are skeptical it will work.

Oct 5, 2024; Fayetteville, Arkansas, USA; Tennessee Volunteers quarte rback Nico Iamaleava (8) scrambles out of the pocket in the second quarter against the Arkansas Razorbacks at Donald W. Reynolds Razorback Stadium.
Nelson Chenault/Imagn Images

The House v. NCAA settlement would implement a new NIL (name, image, and likeness) deal approval process to eliminate “pay-for-play” booster and collective NIL deals. But the NCAA and power conferences have released few details about how the system, a clearinghouse run through software created by Deloitte, would actually work—until now.

A new three-page memo, distributed to schools by officials involved in the settlement and obtained by Front Office Sports, sheds new light on the clearinghouse, which would be called “NIL Go.” Some of the biggest revelations: The clearinghouse itself wouldn’t be able to block certain deals—instead, it would just flag them. Schools will be in charge of determining the difference between a booster and collective versus a non-affiliated brand. And Deloitte will potentially charge hefty fees, anywhere from $5,000 to $500,000 per school.

But plenty of questions remain, including whether it’s legal for the NCAA and conferences to determine “fair-market value”; what penalties athletes will face if they refuse to participate in the process or go forward with deals regardless; or whether the rules are enforceable. Several industry experts tell FOS they see myriad issues with the plan—including those that could be fodder for more lawsuits.

“The proposed settlement does not create stability in college athletics,” Russell White, head of an organization representing NIL collectives called The Collective Association, tells FOS. “It actually creates new chaos.” 

The confusion comes just a week before the settlement could receive final approval (or denial) by Northern District of California judge Claudia Wilken. If approved, the terms, including the requirement for all NIL deals to run through the clearinghouse, would begin July 1. 

In the new process, athletes would submit the deal information to their athletic department, which would have to determine the “status” of the entity paying them—whether they’re boosters or collectives. The criteria suggested include not just whether the payor was created to support an athletic department (like a collective) or has contributed more than $50,000 to the school (like a booster). It could also be a company with “employment or ownership roles tied to the institution or associated entities.” Schools will each appoint an employee, dubbed a “change champion,” to facilitate and oversee this process at the campus level.

A recent draft of the settlement suggested that only deals considered to be from boosters or collectives (or companies that could theoretically be considered boosters) would go through this analysis. A deal in this category would run through Deloitte’s system to determine whether it offers a fair-market value payment to a player for NIL activities—like an endorsement, autograph signing—or whether it’s pay-for-play disguised as NIL. 

One of the biggest legal and logistical questions has been how fair-market value would be determined. According to the memo, Deloitte’s software will use a 12-point analysis comparing the deal with “similarly situated deals,” looking at “social media presence, local and institutional market size, and brand influence.” Even though the deals aren’t supposed to be pay-for-play, the criteria will include on-field performance and roster value.

If the deal is “not cleared,” players have several options: They can cancel the deal, renegotiate it for less money and resubmit it to the clearinghouse, request “neutral arbitration,” or “proceed at risk of eligibility consequences.” The memo did not name who would run the arbitration, nor did it outline specific consequences athletes could face if they went forward with deals.

Deloitte won’t oversee the enforcement process, however—that’s up to an “enforcement entity” to be created by the NCAA and power conferences.

Nov 16, 2024; Annapolis, Maryland, USA; Tulane Green Wave quarterback Darian Mensah (10) rushes during the second half  against the Navy Midshipmen at Navy-Marine Corps Memorial Stadium.
Tommy Gilligan/Imagn Images

The outlined process has raised a long list of questions with industry experts, including lawyers and collective operators. “I had a good laugh,” White says of his first read of the memo.

The biggest question: Will the criteria used to determine fair-market value hold up in court? If a player is told they can’t go forward with a deal because it pays too much, the player or the collective/booster could sue. “There’s no formula for what someone is ‘worth’ in this space,” White says. “The market decides that. It’s what someone’s willing to pay, not what an algorithm says they should be worth.”

NIL attorney Darren Heitner tells FOS, “The framework is a major legal issue. Determining ‘fair market value’ for NIL deals is subjective and could lead to disputes between athletes, businesses, and the clearinghouse.” 

The required submission to the clearinghouse could even violate the terms of athletes’ NIL contracts, since many include confidentiality clauses that could be broken if a player submits them to a school or allows them to go through Deloitte’s software. 

Ultimately, it’s unclear whether the clearinghouse will have any teeth. The NCAA has not said what penalties schools, athletes, or associated boosters would incur if they either refuse to participate in the clearinghouse or go ahead with deals that have been flagged. And that could be a major problem for the NCAA, given its track record of similar restrictions being struck down in court. As a result, the NCAA hasn’t punished a player for violating an NIL rule.

It’s possible that, because these are the terms of a settlement that schools and class counsel agreed to, the punishments could withstand litigation. But boosters, collectives, and other companies aren’t parties to the lawsuit, so there’s an expectation that they’ll sue if their deals are blocked.

“The settlement agreement allows the conferences and NCAA to make rules surrounding this, but the vagueness of that power might be an issue in any subsequent litigation,” Boise State law professor Sam Ehrlich tells FOS. “Yes, athletes released a lot of these potential claims, but will that apply to punishments here given how vague and open-ended the settlement agreement is on this point? We’ll see.”

The NCAA did not respond to requests for comment regarding what types of penalties it would invoke if players decided to accept deals flagged by the clearinghouse, or declined to submit their deal information altogether. A representative for the power conferences declined to comment given the settlement’s ongoing nature.

“A lot of [athletic directors] I talk to are really, really looking for the House settlement to come through because they believe it’s going to create normalcy—it’s going to expose cheaters and make everybody play by the rules,” one collective operator, who spoke under the condition of anonymity, tells FOS. “That’s not what’s gonna happen.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Apr 6, 2025; Miami, Florida, USA; Marc Leishman (center) celebrates with his teammates after winning the final round of the LIV Golf Miami golf tournament at Trump National Doral.

Trump Golf Courses Secure 2026 Stops on LIV, PGA

For the fifth consecutive year, LIV golf returns to a Trump course.
May 10, 2025; New York, New York, USA; Boston Celtics center Kristaps Porzingis (8), and forward Jayson Tatum (0) and New York Knicks forward OG Anunoby (8) during game three of the second round for the 2025 NBA Playoffs at Madison Square Garden.

Celtics Sale Set to Close in Next Two Weeks

The $6.1B deal has taken longer to close than other recent franchise sales.

More RedZones? 10 Burning Questions With ESPN’s Pitaro and NFL’s Schroeder

The execs behind the landmark ESPN-NFL deal sat down with FOS.

Featured Today

Inked Under Anesthesia: Athletes Getting $50,000 Tattoos

High-end studios, elite artist teams, and hours under anesthesia.
Coco Gauff at New York Liberty
August 2, 2025

How the New York Liberty Became the Hottest Ticket in Town

Once banished to the burbs, the Libs are now Brooklyn’s marquee attraction.
Las Vegas sign
July 29, 2025

College Sports Embracing Vegas After Years of Cold Shoulder

The Big Ten became the latest newcomer to Sin City.
2000, Jupiter, FL, USA; FILE PHOTO; Montreal Expos pitcher Hideki Irabu in action on the mound against the New York Mets at Roger Dean Stadium during Spring Training
July 28, 2025

Dead Sports Franchises Are Alive and Well on Twitter

The Expos, Sonics, and Whalers have active social media accounts.

March Madness Fields Will Stay Put at 68—at Least Until 2027

NCAA tournament expansion is still on the table for 2027.
Stanford
August 1, 2025

John Donahoe Taking Over Stanford Sports After Rocky Nike Tenure

John Donahoe will be Stanford’s AD after a four-year stint running Nike.
May 4, 2017; Columbus, OH, USA; The BYU Cougars against the Long Beach State 49ers at St. John Arena
August 4, 2025

Federal Judge Tells Stephen F. Austin to Reinstate Women’s Sports Teams

Schools may not be able to follow through on threats of cuts.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
NCAA Track
July 31, 2025

NIL Collectives Can Still Pay College Athletes, With Some Restrictions

NIL collectives will still play a pivotal role in recruiting.
Rutgers
July 28, 2025

Rutgers Finds New Athletic Director After Almost a Year

Rutgers’s previous athletic director, Pat Hobbs, resigned in August 2024.
Jan 20, 2025; Atlanta, GA, USA; Notre Dame Fighting Irish tight end Mitchell Evans (88) runs the ball against the Ohio State Buckeyes in the second half in the CFP National Championship college football game at Mercedes-Benz Stadium.
July 25, 2025

‘More Bark Than Bite’: What Trump’s Executive Order Means for College Sports

“This all comes down to Congress and the courts.”
July 24, 2025

UNC’s Bill Belichick Brings His NFL Swagger to ACC Media Days

UNC is becoming one of the most interesting stories in college football.