The “new-ish” framework governing Name, Image, and Likeness (NIL) compensation for student-athletes continues to mature after the NCAA-House settlement. Recent guidance from the College Sports Commission introduces new requirements for disclosure and compliance, centered on a critical concept: “valid business purpose.” For student athletes and potential sponsors, understanding this refined-but-still-tricky definition will be essential for structuring permissible and effective NIL agreements.
Today the College Sports Commission issued additional guidance to schools about the definition of “valid business purpose” and the importance of sharing information about entities involved in third-party NIL deals. More information is available here: https://t.