New NIL Clearinghouse to Use Arbitration in Evaluating Athlete Deals

With final approval being granted on Friday, the House settlement brings several new elements to the NCAA beginning next season, highlighted by the revenue sharing cap and the implementation of roster limits.

One of the controversial aspects of the settlement is the clearinghouse procedure for reviewing NIL deals that exceed $600.

The accounting firm Deloitte has established a clearinghouse, known as NIL Go,  that will audit and manage NIL deals, verifying whether or not agreements between athletes and boosters are for a valid business purpose rather than a recruiting incentive.

According to Sportico, “the clearinghouse will use a fair market algorithm to assess if an NIL deal has a plausible relationship to the value of the athlete’s right of publicity in the context of a proposed deal.”

The process of what happens once NIL Go evaluates a deal was recently reported by The Athletic‘s Chris Vannini:

Although there is a concern that the denial of NIL deals will lead athletes and businesses to file lawsuits against the clearinghouse, the presence of arbitration will likely “deter attorneys who would otherwise jump at the chance to bring a lawsuit that would attract media attention,” Sportico‘s Michael McCann reports.

Once a case is taken to arbitration, things are conducted outside of public view, and the arbiter’s decision is final.

The College Sports Commission, which is reportedly looking to hire a lead investigator who would be the arbiter of NIL deals, recently announced MLB executive Bryan Seeley as its CEO.

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One who watches
2 hours ago

Imagine being a star in a college sport like Cooper Flagg or Arch Manning or Rex Mauer and having your NIL valuation be determined by some Patagonia vest wearing, straight out of Bschool PE analyst spreadsheet jockey type with 2 years of experience to his/her name.

As Vannini in the linked tweet said “there will be lawsuits”

PowerPlay
Reply to  One who watches
1 hour ago

Maybe for Mauer, but commercially marketable athletes like Flagg and Manning will be done by Deloitte partners

IU Swammer
6 hours ago

This is the piece that may save Olympic sports. If it survives court challenges, donors won’t be able to throw money at recruits like they have the past few years, so I’m hopeful that a good chunk of that money will be donated to athletic departments that will share it with Olympic sports. I’m hopeful but not confident.

About James Sutherland

James Sutherland

James swam five years at Laurentian University in Sudbury, Ontario, specializing in the 200 free, back and IM. He finished up his collegiate swimming career in 2018, graduating with a bachelor's degree in economics. In 2019 he completed his graduate degree in sports journalism. Prior to going to Laurentian, James swam …

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