Less than two weeks after terms of a multibillion-dollar college sports settlement went into effect, friction erupted over the definition of a “valid business purpose” that collectives making name, image and likeness payments to players are supposed to have.

The new College Sports Commission sent a letter to athletic directors last week saying it was rejecting deals in which players were receiving money from collectives that were created solely to pay them and don’t provide goods or services to the general public for profit.

A lead attorney for the players responded by saying those instructions went against settlement terms and asking the CSC to rescind the guidance.

“This process is undermined when the CSC goes off the reservation and issues directions to the schools that are not consistent with the Settlement Agreement terms,” attorney Jeffrey Kessler wrote to NCAA outside counsel Rakesh Kilaru in a letter obtained by The Associated Press.

Yahoo Sports first reported details of the letter, in which Kessler threatens to take the issue to a judge assigned with resolving disputes involved in the settlement.

Kessler told the AP that his firm was not commenting on the contents of the letter, and Kilaru did not immediately respond to the AP’s request for comment.

Yahoo quoted a CSC spokesman as saying the parties are working to resolve differences and that “the guidance issued by the College Sports Commission … is entirely consistent with the House settlement and the rules that have been agreed upon with class counsel.”

When NIL payments became allowed in 2021, boosters formed so-called collectives that were closely tied to universities to work out contracts with the players, who still weren’t allowed to be paid directly by the schools.

Terms of the House settlement allow schools to make the payments now but keep the idea of outside payments from collectives, which have to be approved by the CSC if they are worth $600 or more.

The CSC, in its letter last week, explained that if a collective reaches a deal, for instance, for an athlete to appear on behalf of the collective, which charges an admission fee, that collective does not have a “valid business purpose” because the purpose of the event is to raise money to pay athletes, not to provide goods or services available to the general public for profit.

Another example of a disallowed deal was one an athlete makes to sell merchandise to raise money to pay that player because, the CSC guidance said, the purpose of “selling merchandise is to raise money to pay that student-athlete and potentially other student-athletes at a particular school or schools, which is not a valid business purpose.”

Kessler’s letter notes that the “valid business purpose” rule was designed to ensure athletes were not simply being paid to play, and did not prohibit NIL collectives from paying athletes for the type of deals described above.

To prevent those payments “would be to create a new prohibition on payments by a NIL collective that is not provided for or contemplated by the Settlement Agreement, causing injury to the class members who should be free to receive those payments,” Kessler wrote.

MANY WASHINGTON STATE FANS have heard of the Cougar Collective but in the world of NIL, a crimson entity called the Crimson Champions Club is on the rise and it’s favorable to your taxes because it’s a 501(c)(3) nonprofit organization.

“NIL Is Not Optional,” the organization said in an executive summary distributed earlier this year. “The Name, Image, and Likeness era has redefined college sports. Success now demands more than performance, it requires brand building, community impact, and professional growth. NIL gives student-athletes the platform to grow, give back, and gain real value.”

The CCC is taking a unique approach to how it supports WSU athletes, writing, “Crimson Champions Club is non-profit reshaping the NIL landscape at WSU. CCC connects Cougar student-athletes with charitable organizations across the Pacific Northwest, blending athletic excellence with meaningful community service.

“We empower athletes to create impact beyond the field, promoting leadership, personal growth, and a culture of giving back. Our mission is rooted in service and lasting community engagement.”

Unlike the Cougar Collective, whose motto — “mighty by the many” — is reflected in its minimum monthly membership fee of $18.90, the Crimson Champions Club begins its solicitations at a $5,000 per year minimum (or $416.67 per month).

The CCC was launched last year by long-time WSU partisan John Glass of Spokane and others. The organization so far has kept a fairly low profile — so much so that repeated attempts by Cougfan.com to land an interview have been unsuccessful.

“WSU doesn’t need to be among the nation’s elite in NIL,” the CCC writes, “But it absolutely must lead the way in NIL for the new Pac-12.”

The organization is bullish on the Cougs. But there is a window and Cougar Nation must act before it closes.

“The path to the College Football Playoff and NCAA Basketball Tournament has never been clearer for Washington State,” reads the executive summary. “With the right resources in place, success isn’t just possible — it’s inevitable. This is WSU’s time to shine. With dedicated alumni support, WSU is in a great position to lead the new Pac-12

“The next few years will determine WSU’s athletic legacy and national standing,” says the CCC.

THE CCC’S GOAL WITH WSU ATHLETES is to build lasting community engagement by connecting them with Pacific Northwest charities.  “We focus on building futures, not buying performance,” the organization says.

In addition, the CCC plans to offer athletes programs in financial literacy, leadership, and business skills, and is partnering with the Carson College of Business in that quest. “We’re building champions on the field and in life,” the CCC says.

THERE ARE SIX donation levels, all named after the stadiums and arenas on WSU’s campus.

• Mooberry – $416.67 per month or $5,000 per year
• Fieldhouse – $833.33 per month or $10,000 per year
• Bohler – $2,083.33 per month or $25,000 per year
• Bailey-Brayton -$4,166.67 per month or $50,000 per year
• Beasley – $6,250 per month or $75,000 per year
• Martin – $8,333.33 per month or $100,00 per year

Donations can be made HERE and also via checks sent to 8030 Bracken Pl SE, Snoqualmie, WA 98065, and also via the 1890 Foundation on Benevity and through a bank deposit via QuickBooks. More information is available on the CCC website HERE.

CLICK THIS IMAGE TO GET YOUR WSU SEASON TICKETS TODAY!

NORMAN — The University of Oklahoma Athletics Department and Learfield announced Tuesday that Sooner Sports Properties will now be the exclusive, centralized Name, Image and Likeness (NIL) marketing partner for Oklahoma Athletics. Sooner Sports Properties, Learfield’s local team managing multimedia rights for Oklahoma Athletics, and 1Oklahoma, OU’s current NIL partner, are merging all OU NIL operations into a single entity backed by Learfield.

This combined team will continue under the 1Oklahoma brand and builds upon the momentum that Sooner Sports Properties, 1Oklahoma and OU Athletics have realized with innovative Learfield Impact NIL programs. Streamlining NIL operations into one organization will allow Oklahoma Athletics to maximize NIL dealmaking efforts for its student-athletes.

“As the landscape and rules governing college athletics continue to evolve, we are constantly looking for innovative ways to stay ahead of the curve and create significant NIL growth opportunities to our student-athletes,” said University of Oklahoma Vice President and Athletics Director Joe Castiglione. “Centralizing efforts through our trusted partner, Learfield/Sooner Sports Properties, allows us to immediately expand what we already have in place and deliver pioneering NIL opportunities that build long-term value for our athletes and our program.”

Consolidating NIL operations will deliver organizational efficiencies for all involved. The integrated team will enable streamlined marketing and communications efforts and standardized processes for NIL partners, fans and athletes. All the highly successful 1Oklahoma initiatives, including the membership program and Inspiring Champions Fund events hosted in partnership with OU’s Sooner Club, will continue to support OU Athletics through the merged organization.

Under the leadership of Kelly Collyar, Vice President and General Manager of Sooner Sports Properties, Oklahoma Athletics has experienced significant NIL momentum, including groundbreaking programs with Fowler Automotive, State Farm, Devon and Planet Fitness. Sooner Sports Properties helps brand partners integrate student-athlete storytelling with school intellectual property, including OU marks and logos, leading to next-level brand engagement with Sooners fans.

Sooner Sports Properties will leverage Learfield Impact NIL services centered around three foundational pillars: people, content and technology. The culmination of these pillars delivers Oklahoma Athletics the greatest NIL opportunities for its organization and athletes. Sooner Sports Properties will further tap into extensive existing partnerships and leverage Learfield’s Compass NIL platform to facilitate NIL dealmaking with brand partners.

“Oklahoma Athletics and Sooner Sports Properties have implemented best-in-class NIL marketing campaigns over the past four years with Fowler Automotive, State Farm, Devon Energy and many other brand partners positively impacting hundreds of Sooner student-athletes,” said Solly Fulp, Executive Vice President, NIL Growth and Development at Learfield. “Our new centralized partnership with Joe and his team will allow Oklahoma to maximize student-athlete marketing opportunities through our industry-leading people, content and technology solutions.”

With this expanded partnership, Sooner Sports Properties will add more dedicated NIL resources to its award-winning team. Bobby Nash, an accomplished college athletics executive, will join the Norman operation as Director of NIL Revenue and Activation, cultivating new partnerships and generating incremental NIL opportunities for the Sooners. Nash earned his undergraduate and master’s degrees at the University of Oklahoma and held various, external positions at OU and the University of Colorado, and most recently served as Deputy Athletic Director of External Engagement at Utah State University. The centralized team will continue delivering powerful student-athlete storytelling campaigns through on-campus Learfield Studios personnel who develop custom NIL content with brand partners. Creating these original content campaigns for OU student-athletes helps to build their brands by connecting them with more fans through social media and digital channels.

“It’s an incredible honor to return home to the University of Oklahoma with Sooner Sports Properties,” said Nash. “OU has played a deeply meaningful role in my life and career, and I’m thrilled to contribute to the unified NIL strategy that will create long-term value, for our student-athletes, brand partners and the university. Oklahoma’s tradition of excellence is unmatched, and I look forward to building impactful, authentic partnerships that elevate the NIL experience.”

FILE – LSU quarterback Garrett Nussmeier (13) passes in the first half of an NCAA college football game against Vanderbilt in Baton Rouge, La., Saturday, Nov. 23, 2024. (AP Photo/Gerald Herbert, File)
(AP Photo/Gerald Herbert, File)

Less than two weeks after terms of a multibillion-dollar college sports settlement went into effect, friction erupted over the definition of a “valid business purpose” that collectives making name, image likeness payments to players are supposed to have.

The new College Sports Commission sent a letter to athletic directors last week saying it was rejecting deals in which players were receiving money from collectives that were created solely to pay them and don’t provide goods or services to the general public for profit.

A lead attorney for the players responded by saying those instructions went against settlement terms and asking the CSC to rescind the guidance.

“This process is undermined when the CSC goes off the reservation and issues directions to the schools that are not consistent with the Settlement Agreement terms,” attorney Jeffrey Kessler wrote to NCAA outside counsel Rakesh Kilaru in a letter obtained by The Associated Press.

Yahoo Sports first reported details of the letter, in which Kessler threatens to take the issue to a judge assigned with resolving disputes involved in the settlement.

Kessler told AP his firm was not commenting on the contents of the letter, and Kilaru did not immediately respond to AP’s request for a comment.

Yahoo quoted a CSC spokesman as saying the parties are working to resolve differences and that “the guidance issued by the College Sports Commission … is entirely consistent with the House settlement and the rules that have been agreed upon with class counsel.”

When NIL payments became allowed in 2021, boosters formed so-called “collectives” that were closely tied to universities to work out contracts with the players, who still weren’t allowed to be paid directly by the schools.

Terms of the House settlement allow schools to make the payments now, but keep the idea of outside payments from collectives, which have to be approved by the CSC if they are worth $600 or more.

The CSC, in its letter last week, explained that if a collective reaches a deal, for instance, for an athlete to appear on behalf of the collective, which charges an admission fee, that collective does not have a “valid business purpose” because the purpose of the event is to raise money to pay athletes, not to provide goods or services available to the general public for profit.

Another example of a disallowed deal was one an athlete makes to sell merchandise to raise money to pay that player because, the CSC guidance said, the purpose of “selling merchandise is to raise money to pay that student-athlete and potentially other student-athletes at a particular school or schools, which is not a valid business purpose.”

Kessler’s letter notes that the “valid business purpose” rule was designed to ensure athletes were not simply being paid to play, and did not prohibit NIL collectives from paying athletes for the type of deals described above.

To prevent those payments “would be to create a new prohibition on payments by a NIL collective that is not provided for or contemplated by the Settlement Agreement, causing injury to the class members who should be free to receive those payments,” Kessler wrote.

___

AP college sports: https://apnews.com/hub/college-sports

FILE – Tennessee pitcher Liam Doyle (12) throws to a batter during an NCAA regional baseball game against Miami on May 30, 2025, in Knoxville, Tenn. (AP Photo/Wade Payne, File)
(AP Photo/Wade Payne, File)