College Sports Settlement Faces Early Crisis Over NIL ‘Valid Business Purpose’ Definition

Just days after a multibillion-dollar college sports settlement promised new freedom for athletes to monetize their name, image, and likeness (NIL), bureaucratic red tape is already choking that promise. The newly formed College Sports Commission (CSC) has drawn a line in the sand, rejecting deals from NIL collectives whose only function is to pay players — declaring these arrangements lack a “valid business purpose.” This move is more than a mere technicality; it strikes at the heart of how young athletes are allowed to benefit from their own hard work. According to the CSC’s recent letter to athletic directors, collectives...