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Return of the bag man: NIL clearinghouse could revive paying college athletes under table

A few weeks ago, as the House settlement was dragging its feet through the final approval process, I was chatting with a power conference athletic director about whether it would actually work as intended. Athletic departments throughout the country have been gearing up for the $20.5 million in annual revenue sharing, which is the most […]

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A few weeks ago, as the House settlement was dragging its feet through the final approval process, I was chatting with a power conference athletic director about whether it would actually work as intended.

Athletic departments throughout the country have been gearing up for the $20.5 million in annual revenue sharing, which is the most notable piece of the $2.8 billion agreement. But among coaches and administrators, there is particular interest in the settlement’s newly created enforcement arm intended to stamp out the pay-for-play deals that have dominated the name, image and likeness era of college sports.

It’s a critical piece of the settlement for the NCAA and power conferences, considering the NCAA’s inability to enforce its own NIL rules, yet there remains a deep skepticism among many in the industry that this new enforcement will be any more effective.

One reason? A familiar character in college sports could return to the forefront: the bag man.

The new enforcement terms under the House settlement instruct college athletes to declare any third-party NIL deals worth at least $600 into a clearinghouse database. The idea is that the clearinghouse, dubbed “NIL Go” and managed by the accounting firm Deloitte, will serve as a restrictor plate on NIL collectives and pay-for-play, flagging deals that do not reflect a valid business purpose or fall within a reasonable range of compensation. Yahoo Sports reported that at the recent ACC spring meetings, Deloitte officials shared that 70 percent of past deals from NIL collectives would be denied under the new clearinghouse.

But in candid conversations, coaches and recruiting staffers have serious doubts that athletes will declare those deals, or do so accurately. Some have suggested that players are being encouraged not to declare deals at all, but to simply take the money and keep quiet rather than risk the clearinghouse flagging it. And if that’s the case, where do we suspect that money might be coming from?

“I guess it would just be the same as the way things used to work,” lamented the athletic director, frustrated by those already angling to undermine the settlement. “We’d be right back where we started.”

Before NIL, “bag men” were the not-so-invisible hands of big-time college sports, boosters who secretly funneled cash to top players and recruits. It was cheating in the same way that driving over the speed limit is a crime: If it wasn’t flagrant or egregious, you probably weren’t getting caught.

“Though of course not every player at every level is paid for, this is the arrangement in high-stakes college football,” is how writer Steven Godfrey described it in his 2014 deep dive into the clandestine world of bag men. “Providing cash and benefits to players is not a scandal or a scheme, merely a function. And when you start listening to the stories, you understand the function can never be stopped.”

It’s true. The bag man didn’t disappear in the NIL era — he was legitimized. The emergence of NIL collectives expanded the pool of bag men (and bag women!) by allowing boosters and even everyday fans to fund their favorite team’s roster without fear of ignominy or recruiting violations. It was a modern-day Frank Abagnale story, the bag man coming out of the shadows, from delinquent to deputy.

Without guardrails or the threat of punishment, NIL spending mushroomed. Ohio State football won a national championship last season with a $20 million roster. Top players in football and basketball command seven-figure payments. And as the House settlement loomed, the richest collectives front-loaded their deals in recent months to pre-empt the clearinghouse, which is how you have reports of Texas football spending as much as $40 million on its 2025 roster, including forthcoming revenue sharing.

The settlement is designed to rein in that Wild West culture of NIL, with annual caps on revenue share and constraints on third-party NIL meant to instill some competitive balance. In theory. But $20.5 million won’t be enough for the schools at the top of the power conferences, especially when those funds are spread across an entire athletic department. We’ve already had $20 million rosters in football and $10 million in men’s basketball, and some in the industry believe $40 million-$50 million football rosters are inevitable.

The oversight and enforcement arm, named the College Sports Commission, is supposed to combat that, armed with more efficiency and punitive power than the NCAA currently wields. But history suggests that power-thirsty boosters paying athletes under the table is a tough thing to police — particularly after collectives spent the past few years streamlining the art of bag dropping.

Now, instead of an envelope of cash in a player’s locker, it’s a direct deposit into their bank account. (The IRS might complicate that process under the House settlement, but that’s what payment apps are for.)

“If some donor wants to wire a player $25,000 a month, who’s keeping track of that?” one power conference administrator said.

Money wires aside, the system of boosters paying players is much more sophisticated and far less frowned upon, and it’s going to be impossible to put that infrastructure back into the tube.

One of the main objectives of the House settlement for the NCAA and power conference defendants was to neutralize NIL collectives. But those collectives aren’t going away. Several states have NIL laws that contradict the settlement and could provide legal workarounds. And if not, collectives can just go back into the shadows, out of sight but still pulling the strings.

Maybe the enforcement piece of the settlement will work, or at least be a more effective deterrent than previously existed. Maybe the scrutiny and punishments will be unpleasant enough to curb bag dropping or strike fear in coaches beyond their plausible deniability. Maybe the clearinghouse, over time, will force collectives to wither and players to sign legitimate NIL deals that pass muster.

But for as long as college sports have existed, there have always been folks looking for an edge, a way to beat the system. And the best ones have always found it.

“Maybe you’re trying to do it the right way, but there are always going to be those schools and actors that are trying to do something else,” another power conference administrator said.

The House settlement is going to change the future of college sports. It might revive a bit of its past, too.

 (Photo: Sam Hodde / Getty Images)



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WATCH: $4.1M NIL Star AJ Dybantsa Honors His Roots With Heartfelt Nike Giveaway in Utah

AJ Dybantsa may originally be from Brockton, Massachusetts, but he now calls Utah home, as he went to Utah Prep in his senior year of high school, and will be going to BYU in Provo for college. He has an NIL partnership deal with Nike, and is now giving back to his new community by […]

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June 22, 2025

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AJ Dybantsa may originally be from Brockton, Massachusetts, but he now calls Utah home, as he went to Utah Prep in his senior year of high school, and will be going to BYU in Provo for college. He has an NIL partnership deal with Nike, and is now giving back to his new community by giving away Nikes in Utah.

The No. 1-ranked prospect from the Class of 2025 per ESPN and On3 arrived at the Boys’ and Girls’ Club of America in Provo to give away the free Nikes to kids in need. AJ Dybantsa, whose NIL is valued at $4.1 million per On3, documented the trip in his YouTube channel, as he gave away not just shoes, but also bags, balls, and other Nike merchandise. Here is the video:

The kids made a special sign for the incoming BYU freshman and were chanting his name as he addressed them and their families.

“Thank you y’all, I’m AJ Dybantsa, a freshman at BYU,” the No. 1-ranked recruit introduced himself. “I’m here with Richie Saunders who’s a senior, Dawson Baker and Brody. We have a special delivery.”

This was when Dybantsa revealed that he was a member of the Boys’ and Girls’ Club of America when he was younger too.

“I used to be a Club kid, when I was five, six, I used to do the summer program, My dad used to drop me off and I used to just, you know, play basketball, hang with kids and just, you know, have a good time,” he said.

Dybantsa also revealed that he previously donated to the Boy’s and Girls’ Club in Brockton, as well as the one in Boston, and now, as this is his newest community, he has donated to the one in Provo as well.

Dybantsa will be entering his freshman year in BYU, though he is not expected to stay for long, as he has been honest about wanting to get to the NBA as soon as possible.

AJ Dybantsa to Return to the International Stage for the FIBA U19 World Cup

Before he begins his freshman year at Provo, however, the top-ranked BYU recruit will be suiting up for the red, white and blue as he heads to Switzerland as part of USA Basketball’s U19 national team. He will participate in the FIBA U19 World Cup, alongside former teammates JJ Mandaquit and Tyran Stokes.

Dybantsa has plenty of national team experience, giving the US gold medals in the FIBA Americas U16 tournament and the FIBA U17 World Cup. He also represented Team USA during last April’s Nike Hoop Summit, but represented Jamaica and Congo for Team World last year. His mother is an immigrant from Jamaica, while his father is an immigrant from Congo.

College Sports Network has you covered with the latest news, analysis, insights, and trending stories in football, men’s basketball, women’s basketball, and baseball!



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South Carolina Moves to Ban NIL Deals for High School Athletes Amid Growing Legal Debate

In response to legislative pressure, the South Carolina High School League (SCHSL) amended its bylaws this week to explicitly prohibit student-athletes from earning compensation for their athletic participation. The change, documented in a report by the South Carolina Daily Gazette, aims to comply with a newly passed state budget clause that bans public school districts […]

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June 22, 2025

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In response to legislative pressure, the South Carolina High School League (SCHSL) amended its bylaws this week to explicitly prohibit student-athletes from earning compensation for their athletic participation. The change, documented in a report by the South Carolina Daily Gazette, aims to comply with a newly passed state budget clause that bans public school districts from affiliating with any athletic association that “permits, allows or authorizes” NIL (Name, Image and Likeness) compensation.

Previously, the wording of SCHSL’s rules could have been interpreted as permitting athletes to earn compensation as long as it wasn’t tied to athletic performance or use of school property. League Commissioner Jerome Singleton clarified that the amendment doesn’t reflect a new policy but rather reinforces long-standing rules about maintaining amateur status.

“You can change the wording, but you can’t change the intent,” Singleton told the South Carolina Daily Gazette.

South Carolina State Senator Sean Bennett (R-Summerville), who authored the budget clause, said the policy was meant to protect the amateur nature of high school sports.

“These are extracurricular activities. They are no place for the ugliness or business activities ruining college athletics,” Bennett said.

The move comes as nearly 40 states and the District of Columbia have adopted NIL policies for high school athletes. South Carolina remains among the few actively pushing back.

Under the new bylaw language, the following penalties are in place:

Since the NCAA allowed NIL in 2021, the floodgates of compensation for athletes have opened — with minimal federal regulation. The SCHSL and its supporters fear those trends are now seeping into high school sports.

In March, the SCHSL also relaxed its transfer rule, allowing one penalty-free school transfer for athletes — mirroring the NCAA’s now-normalized transfer environment.

Bill Carter, a consultant who advises schools and athletic associations on NIL policy, called the South Carolina budget clause “pretty extreme” and warned it could prompt a lawsuit.

“The courts are never going to accept that there’s an impediment to a young person’s ability to earn income by way of their name, image and likeness,” Carter said to the South Carolina Daily Gazette.

Carter referenced court rulings in North Carolina and the landmark Supreme Court decision against the NCAA as strong indicators that legal challenges to South Carolina’s stance may be successful.

While many lawmakers support the crackdown, others—like Rep. Jackie “Coach” Hayes—emphasize concern over team cohesion.

“We got enough ‘me’ in this world,” Hayes said to the Gazette. “We need to get everybody working together for a common cause.”

Still, as of now, South Carolina stands firm — making it one of the few states not only to oppose NIL deals for high schoolers but to codify that opposition into law.



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Wisconsin, NIL collective file joint lawsuit on Miami for tampering | News, Sports, Jobs

Camp Randall Stadium is seen during a football game between Wisconsin and Miami of Ohio on Sept. 12, 2015, in Madison, Wis. Associated Press file photo The University of Wisconsin and its NIL collective VC Connect filed a joint lawsuit on Friday against the University of Miami alleging it knowingly induced one of the Badgers’ […]

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June 22, 2025

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Camp Randall Stadium is seen during a football game between Wisconsin and Miami of Ohio on Sept. 12, 2015, in Madison, Wis.

Associated Press file photo

The University of Wisconsin and its NIL collective VC Connect filed a joint lawsuit on Friday against the University of Miami alleging it knowingly induced one of the Badgers’ football players to abandon a lucrative name, image and likeness contract to play for the Florida team this upcoming season.

Allegations of tampering rarely get to this level and the 23-page lawsuit, which was filed in state court in Wisconsin and obtained by The Associated Press, is unusual. Depending on its resolution, it could have a wider impact on future NIL deals across college athletics.

The player in question in the filing is referred to only as “Student-Athlete A.” But the case summary describes facts that line up with the situation involving cornerback Xavier Lucas, who last December announced his plans to enter the transfer portal.

Shortly afterward, Darren Heitner, who has been representing Lucas, indicated that Wisconsin was refusing to put Lucas’ name in the portal and that it was hindering his ability to talk with other schools. In January, Heitner announced that Lucas would be playing for Miami this fall.

The situation is fallout from the rapid changes engulfing college athletics, specifically a combination of two things: Athletes went to court and won the ability to transfer with much more freedom and the 2021 NCAA decision clearing the way for them to strike NIL endorsement deals now worth millions of dollars. That has changed the recruiting landscape and forced the issue of contracts and signed commitments to the fore.



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Miami coach J.D. Arteaga discusses NIL, House settlement impact

When Miami Hurricanes fans hear about NIL or the House settlement, they most likely think about its impact on the football team. But there are other sports at UM that need plenty of money, including basketball and baseball plus Olympic sports. With the baseball season recently concluded with an oh-so-close run at Omaha, CaneSport caught […]

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June 22, 2025

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When Miami Hurricanes fans hear about NIL or the House settlement, they most likely think about its impact on the football team. But there are other sports at UM that need plenty of money, including basketball and baseball plus Olympic sports.

With the baseball season recently concluded with an oh-so-close run at Omaha, CaneSport caught up with J.D. Arteaga to discuss where things stand in this oh-so-important area.

From Rock Bottom to Oh-So-Close To Omaha: Miami Hurricane Baseball’s 2025 Resilience Story … What’s Next for Miami Hurricanes Baseball? Coach J.D. Arteaga Breaks Down 2026 Returners, Needs

It wasn’t in the too distant past that Arteaga bemoaned how the Miami baseball program was at a disadvantage financially because the pre-NIL system had scholarships divvied up among teams with a 50 percent baseball scholarship considered a lot. But when you take a 50 percent scholarship at a school vs. Miami vs. a state school like Florida, an in-state baseball player was paying tens of thousands of dollars less a year in UF vs. UM tuition for that same half scholarship.

NIL has, to some extent, balanced that out, although Miami still has to overpay to make up the difference between tuitions and living expenses at the different schools.

That’s because while the NCAA is allowing up to 34 scholarships for baseball programs, many programs are in the 20s because it’s cost prohibitive for departments to give that many scholarships. Miami, per Arteaga, has landed at 21 baseball scholarships for now. Again, any differences money-wise can be addressed through NIL.

“It definitely helps Miami for sure (with NIL available vs. the old system),” Arteaga said. “They [Miami administration] are raising us to 21 (scholarships), a lot better than the old 11.7. I’m not complaining. But it’s still going to be more expensive to come to Miami than anywhere else. Kids that live off campus, real estate getting a two-bedroom apartment in the Gables area is going to be a lot more expensive than getting that same apartment in Gainesville or Tallahassee or anywhere else. So it’s a factor, but I’m a big believer in you get what you pay for, and this place is special.”

With the ability to pay more via NIL if necessary to land a prospect, Arteaga sums up that finances at UM are “less of a problem now.”

“The administration has helped out quite a bit, and if we can’t make up the difference in scholarship that’s where NIL comes in,” Arteaga said. “At other schools that NIL is going directly to a player’s pockets because they don’t have to pay (as much) for the school. That’s where the disadvantage always comes.”

The scholarship percentages aren’t always so obvious, either. For instance, former star Yohandy Morales had need-based aid at Miami and never was on a baseball scholarship. And current star Daniel Cuvet’s father works at UM, so that covers most of his tuition cost.

With that said, “If you have an absolute need for somebody, you have to overpay,” Arteaga says.

As it pertains to the House settlement, Arteaga said there’s no camping out in front of Athletic Director Dan Radakovich’s office asking for a decent piece of the pie for his players.

It’s a case of Arteaga trusting that the Miami administration will take care of baseball as it needs to.

“They decide, and I know football is king,” Arteaga said. “We’re able to charter and do a lot of things that we do because of football (money coming in), and I know that and it’s as it should be. Whatever they give us I have to go out and make up the difference (with fundraising for NIL, etc.), and whatever we have to do, we have to do it.”



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Xavier Lucas’ attorney denies Miami meeting alleged in Wisconsin lawsuit

The University of Wisconsin and its NIL collective filed a lawsuit Friday against the University of Miami, alleging tortious interference. While not mentioned in the suit, instead cited as “Student Athlete A,” the complaint centers around defensive back Xavier Lucas, who left Wisconsin for Miami this winter. Lucas never actually entered the transfer portal. A […]

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June 22, 2025

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The University of Wisconsin and its NIL collective filed a lawsuit Friday against the University of Miami, alleging tortious interference. While not mentioned in the suit, instead cited as “Student Athlete A,” the complaint centers around defensive back Xavier Lucas, who left Wisconsin for Miami this winter.

Lucas never actually entered the transfer portal. A standout freshman cornerback in 2024 for the Badgers, Lucas posted 18 tackles and an interception in seven games. Lucas withdrew from classes at Wisconsin and enrolled at Miami in January, circumventing the NCAA’s transfer portal.

Wisconsin is seeking financial damages and a judgment that Miami’s actions “wrongfully interfere with contractual commitments.” Lucas’ attorney, Darren Heitner, said in the winter that Wisconsin violated NCAA rules by refusing to place Lucas in the transfer portal.

In the complaint filed Friday, Wisconsin alleges that a Miami staff member and alumnus met Lucas and his family at a relative’s home in Florida in December 2024 after the defensive back signed a two-year, revenue-sharing deal with Wisconsin. That included a “compensation commitment” from Miami that was “more lucrative” than Wisconsin’s deal.

“Miami representatives communicated with Student-Athlete A and his family members, including an in-person December 2024 visit from a Miami coach and a prominent Miami alumnus to the Florida home of a relative of Student-Athlete A,” Wisconsin’s complaint states. “The information related to the in-home visit was communicated to UW-Madison by a relative of Student-Athlete A on December 18, 2024.”

Heitner denied the allegations, telling On3 on Saturday that Lucas never met with a Miami coach and prominent alumnus in December 2024. Heitner previously threatened to file an antitrust lawsuit against Wisconsin if Lucas was not able to play at Miami.

“Wisconsin’s allegations that my client, Xavier Lucas, met with a Miami coach and prominent alumnus in December 2024 are false,” Lucas’ attorney Darren Heitner told On3.

Heitner is an adjunct professor of NIL at the University of Miami School of Law.

In the lawsuit, Wisconsin alleges that Miami communicated with Lucas, “knowingly inducing” him to do so despite being under contract with the Badgers. Wisconsin wrote in the filing that it hopes the lawsuit “will advance the overall integrity of the game by holding programs legally accountable when they wrongfully interfere with contractual commitments.”

The University of Miami has yet to respond to a request for comment. The Big Ten is supporting Wisconsin, telling On3 in a statement that “The University of Miami’s actions are irreconcilable with a sustainable college sports framework and is supportive of UW-Madison’s efforts to preserve.”

It’s an unprecedented moment in college football, with one university accusing another of tampering and it will put the NCAA transfer portal rules to the test.

“These are the type of tampering allegations that are typically fought behind closed doors at the professional sports level based on the leagues’ collective bargaining agreement,” sports lawyer and professor Dan Lust told On3 on Friday. “Here, in the absence of any type of similar mechanism at the collegiate level, this dispute is going to be fought in open court for the world to see the complex interplay of forces in and around the transfer portal. This is truly an unprecedented case and one that commands the attention of the college sports world.”



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College football: Wisconsin NIL collective sues Miami, allege tampering | Ap

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