🏅The College Sports Commission vs. Collectives

Hi everyone,

It was a very busy week in college sports. (Somebody find me the last non-busy week in college sports. I’ll wait.) Collectives are mad, AJ Dybantsa’s a multimillionaire, and Congresspeople are making college sports their business. There’s a ton to catch up on.

And speaking of catching up: Make sure you’re up to speed with everything that published on NIL Wire this week. Our premium content is free for the time being, meaning there’s no excuse not to read, read, read. On Monday, we published a piece on the creative accounting that could college sports in the age of revenue sharing, and on Thursday we looked at the NIL courses popping up on college curricula across the country.

Let’s jump in and take a look at today’s headlines and links.

— Joan

The Big 3

Collectives come under fire

It didn’t take the College Sports Commission long to make news. Created as an independent governing body to oversee Division I athletics, the CSC has jurisdiction over all kinds of things: revenue sharing, enforcement of the House settlement, NIL compliance and more. And on Thursday, it issued guidance that appeared to target collectives.

Backing up for a second: In the wake of House, and with the creation of the NIL Go clearinghouse, third-party NIL deals are now held to a stricter standard. Per the settlement, they must have a “valid business purpose” and be within a fair-market “range of compensation.” Essentially, the rules are attempting to bar schools from funneling money through collectives to circumvent the $20.5 million revenue-sharing cap.

The CSC’s guidance makes it clear the governing body is skeptical that collectives fall into the “valid business purpose” category. “An entity with a business purpose of providing payments or benefits to student-athletes or institutions, rather than providing goods or services to the general public for profit, does not satisfy the valid business purpose requirement,” the CSC wrote.

Reactions have been predictable. Collective leaders are upset. Those who have been saying for years that collective deals can essentially come down to pay-for-play inducements are shrugging. And some legal minds think that in the long run, any attempt to restrict how much college athletes are paid will be ruled an antitrust violation.

AJ Dybantsa signed a huge NIL deal with Fanatics

According to Sportico, the future BYU forward signed a deal worth a whopping eight figures — which extends beyond Dybantsa’s college career.

The presumed No. 1 pick in the 2026 NBA draft will debut for BYU in the fall. His Fanatics partnership will focus on autographed cards, game-worn jerseys and marketing campaigns.

A college sports bill hits Congress

Last month, the Washington Post broke the news that Congress was likely to introduce an NCAA-friendly college sports bill — and this week, a version of that bill arrived. The bipartisan Student Compensation and Opportunity through Rights and Endorsements (SCORE) Act would prevent college athletes from becoming employees, but it’s also a step toward a bill of rights for college athletes.

“College athletics are a vital part of American culture, and it’s clear — from both student-athletes and universities — that a national framework is long overdue,” Rep. Gus Bilirakis (R-Florida), one of the bill’s lead sponsors, wrote in a statement.

NIL BLITZ

♦️ The Athletic explored how NIL and the transfer portal have changed the way college hoops coaches lead.

♦️ Livvy Dunne made a cash offer to buy Babe Ruth’s former apartment — but the co-op board denied her.

♦️ The Washington Post told the story of twin divers who lost their roster spots, putting faces to some of the post-House settlement roster limit news.

♦️ The Michigan NIL bill is still making its way through the state legislature.

♦️ Deion Sanders opted out of EA College Football 26.

♦️ The top football recruit in Texas signed with the state’s fifth-best program … for a ton of money.

♦️ Mike Gundy won’t hire a general manager.

♦️ In Arkansas, NIL deals are no longer subject to state taxes or FOIA requests.

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

Will the House settlement curb booster spending?

• Yes - 43%

• No - 57%