College Athletics Authority Overestimates Name, Image, and Likeness (NIL) Contracts by $44.4 million

The College Sports Commission (CSC) has announced corrections to the value of name, image, and likeness (NIL) deals it has cleared, following a clerical reporting error discovered by Deloitte, the developer of the NIL Go platform.

In a statement, the CSC acknowledged an overstatement of over $40 million in the initial reporting of NIL deals cleared. The corrected total value of deals approved by the CSC now stands at $35.42 million, not $79.8 million as previously announced.

The CSC is responsible for approving contracts worth $600 or more between college athletes and third-party companies. The most common clearance issues for NIL deals have been delays in providing required information, deals not satisfying a valid business purpose requirement, and contradictory deal terms.

The CSC launched the NIL Go portal on June 11 following the House v. NCAA settlement. The platform allows schools to directly pay athletes for their NIL and offers them an opportunity to make money from outside groups.

Despite the initial errors, the CSC stated that most deals are being cleared within a week. However, they acknowledged "frustration" in the time it takes to process certain NIL deals. The company involved in the development of the platform, Deloitte, admitted responsibility for the reporting error and has taken additional measures to prevent future recurrences.

The CSC is taking steps to publicly clarify the data and is working diligently to speed up wait times for NIL deal processing. The corrected data will be reflected in the CSC's "deal flow reports," which will be updated on a regular basis for schools and collegiate athletes.

The total amount of all deals in the system, including those that are still pending, remains at $79.8 million. The initial report of 8,359 deals cleared by the CSC has been revised to 6,090 deals. The values of the deals on NIL Go range as high as $1.8 million.

The CSC regrets the initial delays and growing pains with the NIL Go system. They are committed to ensuring a smooth and efficient process for both schools and athletes as they navigate the new world of NIL deals. The CSC's "deal flow reports" will provide valuable insights into the evolving landscape of NIL deals in college sports.

College Athletics Authority Overestimates Name, Image, and Likeness (NIL) Contracts by $44.4 million