College Sports Commission raises serious concerns about transfer portal deals

The College Sports Commission sent athletic directors a memo saying it has "serious concerns" about some multimillion-dollar third-party NIL contracts as transfer activity rises, and reminded schools that such deals must be reported and are evaluated through the NIL Go portal at the time of entry.

The College Sports Commission issued a memo to athletic directors expressing concern about large third-party name, image and likeness (NIL) deals amid a surge in transfer portal activity. The note was circulated shortly before a College Football Playoff semifinal and referenced the commission's role in reviewing NIL arrangements. Under the settlement that set current NIL rules, schools can share revenue from a $20.5 million pool and the CSC uses the NIL Go portal to evaluate third-party agreements. The memo warned that some deal terms could leave student-athletes vulnerable and affect eligibility. Key points: - The CSC told athletic directors it has "serious concerns" about some multimillion-dollar third-party NIL contracts and reminded them that deals are evaluated when entered in NIL Go. - The House settlement allows schools to share revenue with players from a $20.5 million pool; some third-party arrangements are being used as workarounds to that framework. - The commission emphasized two rules: agreements that pay a student-athlete for NIL must be reported regardless of their label, and payments with associated entities must include direct activation of the athlete's NIL rights (a response to so-called "warehousing"). Summary: The commission's memo reports worry that certain third-party deals could leave student-athletes vulnerable and risk eligibility while prompting closer scrutiny of how agreements are structured. CSC will continue evaluating deals through NIL Go as entries are submitted; the next formal steps or outcomes were undetermined at this time.