The NCAA settlement permits schools to provide college athletes with $20.5 million in direct compensation, all while implementing stricter rules on NIL deals. Schools must ensure NIL agreements have a valid business purpose to be approved. The College Sports Commission launched the NIL Go platform to evaluate these deals via an algorithm. Concerns arise regarding the enforcement of these restrictions, as previous practices by schools have utilized NIL collectives to enhance recruit offers without clear limitations.
The settlement gives schools $20.5 million to spend on player compensation while also putting tighter restrictions on what types of NIL deals will be allowed.
The settlement essentially handed schools a modest salary cap, and then asked them to practice some restraint when using NIL collectives.
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