Hey, athletes and families…got an NIL deal over $600? You might want to read this.
Welcome to the new age of college sports, where talent meets dollar signs…and compliance meets structure. Thanks to a big move tied to the House v. NCAA settlement, all NIL deals valued over $600 will now go through a national clearinghouse, managed by none other than Deloitte.
Yes, the same folks that consult Fortune 500 companies will now be helping to oversee how student-athletes get paid. Here’s what you need to know:
What Is the Clearinghouse?
Think of it as the TSA of NIL deals. Before any NIL deal can “take off,” it has to go through a review process. This centralized system is designed to:
- Ensure compliance with Title IX, NCAA rules, and federal laws
- Protect athletes from exploitative or bad-faith deals
- Provide transparency to schools and regulators
Who's Running It?
Deloitte has been tasked with building and operating the clearinghouse, and their reputation for data security and compliance makes them a solid pick. The goal is to bring order to the Wild West that NIL has become.
What Triggers Clearinghouse Review?
- Any NIL deal valued over $600
- Both school-facilitated and third-party/private deals
Yes, that means even your TikTok sponsorship or endorsement deal with a local gym counts if it crosses the $600 mark.
Why This Matters to Athletes and Families
- No More Backdoor Deals: Everything gets tracked and reviewed, which protects student-athletes from fraud and contractual traps.
- Fewer Eligibility Risks: Mistakes in NIL compliance have cost athletes playing time. This aims to fix that.
- Streamlined Taxes and Paperwork: A central hub helps with reporting income, reducing year-end chaos.
But beware: the clearinghouse also means more oversight, less privacy, and potential delays in finalizing deals. Athletes will need to be patient and informed.
The Bottom Line
NIL isn’t just about hustle anymore — it’s about paperwork. Athletes and families should start thinking about NIL deals like mini-business contracts. This new clearinghouse is meant to protect you, but it also comes with rules. Know them, play smart, and get paid right.
Stay tuned, because this new playbook is still being written.