NIL clearinghouse rejects $90 million in deals over past year

The College Sports Commission's clearinghouse has rejected nearly $90 million in NIL deals since its launch a year ago. The group approved $355 million in deals during the same period, according to a report released Wednesday. During the 61-day period from May 1 through June 30, the clearinghouse rejected deals worth $34 million and cleared deals worth $113 million.

The average approved deal during that span was valued at $14,792, while the average rejected deal was valued at $51,593.

Review process The clearinghouse has issued final rulings on nearly 90 NIL deals per day over the past year. Only two deals remain in arbitration, the report stated. A CSC spokesperson said the most common reasons for rejection are that a deal lacks a valid business purpose, compensation does not match rates for similarly situated student-athletes, or the deal does not include direct activation of the student-athlete's NIL.

Earlier concerns In a January memo to athletic directors, the CSC raised concerns about deals that appeared to lack a valid business purpose, held future rights, or failed to meet fair market value standards. At the six-month mark, the clearinghouse had rejected $15 million and approved $127 million.

Schools have reorganized athletic departments or created separate entities to facilitate school-related NIL opportunities outside the clearinghouse's scope. Some institutions have sought ways to exceed the $20.5 million revenue-share cap through these arrangements.

In May, the CSC won an arbitration case after denying millions of dollars in NIL deals arranged by 18 Nebraska football players with Playfly Sports. CSC CEO Bryan Seeley said the process showed the system working as intended.