Loopholes and A**holes: Working Around the Clearinghouse

Well, this isn’t necessarily unexpected.

Earlier this week, Yahoo! Sports reported that 18 Nebraska football players were challenging more than $1 million in third-party NIL deals rejected by the College Sports Commission (CSC), the new enforcement arm of college sports. The 18 athletes are the first group to go through the arbitration process.

The Cornhuskers are not afraid to challenge the CSC, becoming the first university to publicly enter arbitration. But sources across college sports tell On3 that Nebraska will not be the last. At least half a dozen schools across the Big Ten and SEC received notable deal denials last week, which could ultimately land in arbitration, sources tell On3.

The CSC rejected Nebraska’s deals because they violated a policy dubbed “warehousing,” when a multimedia rights partner purchases athletes’ NIL rights. Sources have told On3 that the CSC is pinning too many deals on the “associated entity” term, which is used to describe deals facilitated by NIL collectives or schools’ boosters.

In a new data release by the CSC this week, associated contracts tied to schools’ sponsors and booster-operated companies made up 63% of all NIL agreements in the last two months. In total, the CSC said 711 deals worth $29.3 million have been reviewed and not cleared.

“Frustrations are starting to boil over,” one SEC NIL collective told On3. “The CSC is taking some extreme liberties in their judgment on deals.”

And, of course, when folks get frustrated, the lawyers get involved and, eventually, the path is paved to let them do whatever the hell they want to do.

What the fuck?

And to think, Gurley and Green had to sit out games for what amounted to less than 1% of what they’re arguing about now.

7 thoughts on “Loopholes and A**holes: Working Around the Clearinghouse

  1. Sad but true from JP: “And, of course, when folks get frustrated, the lawyers get involved and, eventually, the path is paved to let them do whatever the hell they want to do.” Just make them employees and set a wage ffs.

  2. NCAA’s Law Firm newest junior partner: “So we haven’t won a single lawsuit this century but still keep billing them?”

    Senior partner: “That’s right…our pensions are fully funded. Now get busy and find more ways we can pretend to protect the children and still lose in court.”

    • When the Ga colony was established in 1773, lawyers were banned a d referred to as pest and scourge of mankind.

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