NIL as it exists today will go away if the House settlement is approved next month. According to the Sports Illustrated article linked below, the Power 4 conferences have agreed to create a separate entity that will serve the following functions:
“First, it will oversee a cap management system, ensuring schools stay within the $20.5 million annual revenue-sharing limit. It will additionally establish an NIL clearinghouse, run by Deloitte, to assess the fair market value of NIL deals and prevent schools from using booster-backed collectives to bypass the cap.
A new investigative and infractions unit will police violations, including tampering and salary cap circumvention. Penalties will include fines, revenue-share reductions, and suspensions for coaches and administrators. The power conferences believe this structure will prevent the chaos and unchecked spending wars that have defined the NIL era thus far.”
So, if the House settlement is approved next month, a person could pay NIL money to a player only if the person uses the player’s name, image or likeness, and the amount of the payment could not exceed the fair market value of the name, image or likeness, as determined by the clearinghouse. Collectives and big boosters could not fund “pay-for-play” NIL deals, as they do now. Theoretically, this would make the NIL playing field more level.
Power Conferences to Take Over NIL Oversight as NCAA Forfeits Control
