College Sports Commission informs schools that NIL collectives can pay athletes directly with limitations

In a revised memo sent to schools on Thursday, the College Sports Commission announced that booster-backed NIL collectives can, in fact, directly compensate athletes if the transactions meet certain “valid business purpose” benchmarks.

The one-page guidance replaces a memo sent to schools on July 10 where the CSC revealed that collectives would not be treated as valid businesses and denied many of their transactions with athletes. After weeklong negotiations with House plaintiff attorneys Jeffrey Kessler and Steve Berman, the College Sports Commission, operated by the power conferences, is adjusting its approach — an expected resolution that Yahoo Sports reported last week after the parties originally agreed on a joint statement that was finally released Thursday.