ESPN: NIL clearinghouse has rejected $90M in deals

[TideFans Reporter]

From ESPN College Football:

NIL clearinghouse has rejected $90M in deals​

The clearinghouse charged with analyzing NIL deals has rejected $90 million worth of those submitted.
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[NoNC4Tubs]

From ESPN College Football:

From the Article:
"The most common reasons for a deal not to clear are (1) the deal is not for a valid business purpose as that term is defined by the settlement and NCAA bylaws, (2) the compensation is not at rates and terms commensurate with similarly situated student-athletes, and/or (3) the deal does not include direction activation of the student-athlete's NIL," a CSC spokesperson said in a statement to ESPN.

In its report, the CSC said it has made a final ruling on nearly 90 NIL deals per day over the last year.

The report follows months of contention with schools and their leadership over proper NIL deals.

Through a January memo sent to athletic directors, the CSC addressed "serious concerns" about some of the NIL deals that had been submitted, especially those that did not appear to have a valid business purpose, held a player's rights in the future and failed to match the standard of fair market value.

"Without prejudging any particular deal, the CSC has serious concerns about some of the deal terms being contemplated and the consequences of those deals for the parties involved," the CSC's memo said then.

At the time, the six-month mark of NIL Go's inception, deals worth $15 million had been rejected and deals worth $127 million had been approved, meaning the CSC has rejected nearly $75 million in NIL proposals and cleared more than $200 million in NIL deals over the last six months alone.

In recent months, schools have sought ways to pay players through revenue share rules -- outside the scope of the CSC -- and separate NIL deals. Kentucky, Ohio State, Utah and other major institutions have reorganized their athletic departments or created separate entities to facilitate school-related NIL opportunities.

The latter have faced the most scrutiny as schools search for loopholes to exceed the rev-share cap of $20.5 million. In May, the CSC won an arbitration case after denying millions of dollars in NIL deals that 18 Nebraska football players had arranged with Playfly Sports, a sponsorship and marketing firm that works with schools and athletes across the country.