The College Sports Commission has once again adjusted its guidelines on NIL deal values. In April, the governing body increased the minimum NIL deal value necessary for review from $600 to $2,500, with a maximum total earning of $15,000. Now, deals valued between $600 and $15,000 will avoid RoC review, unless an athlete has exceeded $50,000 within a single academic year.
According to Lexology, the new policy is effective July 1, and it gives both student-athletes and their partners greater flexibility in contracting NIL agreements.
Related: CSC Increases Minimum NIL Deal Value Necessary for Review From $600 to $2,500
Regardless of value, the CSC maintains that all NIL deals must be “for a valid business purpose related to the promotion or endorsement of goods or services provided to the general public for profit.”
Along with the new guidelines on minimum deal values, the CSC is also making a change to its evaluation process. Also effective July 1, the CSC will use prediction intervals to gauge market variability and up to date data. The prediction intervals, rather than confidence intervals, “account for the natural range in compensation among similarly situated student-athletes,” making the process more flexible for single deals.
While the CSC updated its minimum NIL deal value guidelines, AP News reported it also had a major win in court as a federal magistrate ruled last week that multimedia rights companies working with college athletics departments are subject to the same rules as third-party companies seeking NIL deals with student-athletes.
“This ruling affirms that the CSC has been correctly applying the language of the settlement as written,” commission CEO Bryan Seeley said in a statement. “Our enforcement of the rules has been, and will continue to be, fact-based and consistent with the settlement that plaintiffs’ lawyers negotiated and was agreed to by all parties.”
Both the new legal confirmation and the updated review guidelines will take center stage as student-athletes and partnering entities prepare for the new academic year and athletics season to begin.
