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Schools Asked to Sign Strict New NIL Agreement That Will Prevent Them from Suing the CSC

November 20, 2025

Jack Huempfner

The College Sports Commission is asking all major college programs to sign a new participation agreement that could reshape NIL enforcement and the future of athlete compensation. The CSC launched earlier this year as the primary enforcement arm for rules created under the House settlement, including the spending cap on direct athlete payments.

What the CSC Is Proposing

The CSC has sent power conference schools a ten page agreement with several major requirements. The agreement would give the CSC stronger authority to investigate NIL violations, monitor direct athlete payments, and enforce spending limits. Schools would have to waive their right to challenge CSC rulings in court. Any disputes would be resolved through arbitration.

Schools would also agree not to encourage state officials or third parties to challenge CSC decisions. If a school violated this part of the agreement, it could lose conference revenue for at least one year and miss postseason play in the sport involved.

Another key requirement is increased cooperation. Schools must use best efforts to ensure their coaches and boosters participate in CSC investigations. If a coach or booster refuses to cooperate, the CSC can consider that lack of cooperation as evidence that supports a violation.

Why This Move Matters

Enforcement in the NIL era has been inconsistent. Differences in state laws, constant legal challenges, and the threat of lawsuits have made it difficult to regulate NIL deals and direct athlete compensation. The CSC is aiming to create a more unified system with rules that apply evenly to all participating schools.

The agreement would also strengthen enforcement of the spending cap that allows schools to pay athletes up to a set amount each year. Without a strong enforcement body, the richest programs could use their financial advantages to widen the competitive gap. The CSC wants to prevent schools from bypassing rules by challenging punishments in court.

Why Some Schools Might Hesitate

Not every institution may be ready to sign. Some states have laws that prevent public universities from using arbitration. Other states have passed NIL laws that conflict with CSC policies. Schools in those states may not be able to sign without changes to state law.

Some schools may also be uncomfortable giving up the right to defend themselves in court. Arbitration limits leverage and shifts control to the CSC. Programs with strong booster support may worry about being held responsible for booster actions they cannot entirely control.

Schools may also hesitate because the new system is still developing. Direct athlete payments, spending caps, and NIL deal reviews are all new processes, and some athletic departments may want more clarity before committing to strict enforcement rules.

What Comes Next

The agreement only goes into effect if every power conference school signs. If that happens, the CSC expects to begin active investigations soon. Schools would face stricter cooperation requirements, and NIL collectives would come under closer scrutiny to ensure deals have a valid business purpose.

This development signals a shift toward stronger and more consistent enforcement in college sports. As NIL and athlete compensation continue to evolve, the CSC is positioning itself as the central authority that will oversee compliance, spending, and fairness across programs. Schools, athletes, coaches, and collectives will all need to adjust to a more structured and closely monitored environment.

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