Collectives Using Lawsuits To Fight Back Against New NIL Rules In College Athletics

It seems like every week there's a new, massive change to the world of collegiate athletics. The introduction of name, image and likeness created a new paradigm in recruiting and program development. The transfer portal. Conference realignment. 

Then the House settlement was released in June, paving the way for schools to pay players directly. Though it also created the College Sports Commission, which might lead to even bigger changes. Already, the Commission announced they were denying a number of NIL deals between players and collectives as being without a legitimate business interest.

And several major athletic directors are convinced that the changes are only starting. With some collective leaders saying lawsuits challenging the entire model are a near inevitability. 

RELATED: NIL Deals Getting Rejected Already By New College Sports Commission

"Collectives in the form they’ve been going for the last three years, paying athletes directly with donor contributions, is going to be a thing of the past," Utah athletic director Mark Harlan told The Athletic. "’True’ NIL is still being allowed, but just like in pro sports, where there is a hard (salary) cap."

A view of LSU Tiger Stadium at night after the LSU Tigers 31-0 win over the Southeastern Louisiana Lions on September 08, 2018, at Tiger Stadium in Baton Rouge, Louisiana.  (Photo by Andy Altenburger/Icon Sportswire via Getty Images)

College Sports Commission Going to Create NIL-Related Lawsuits

Another top collective leader said that every deal is coming under scrutiny, even small ones.

"All of their (athletes’) deals are getting shut down by NIL Go," the source said. "Even deals of $5,000 or less."

And while some collectives have shut down or gone in-house, the expectation of those who refuse to give up is that NIL Go is going to create lawsuits.

"They said the quiet part out loud: We hate collectives and pay-for-play, and our sole purpose is to restrict that money and regain control," said one collective head. "Now they have provided direct evidence for the lawsuits that will start flying."

Several lawsuits already have, with the underlying argument that the current language of the College Sports Commission could be viewed as an unreasonable restriction of the rights of young athletes. As well as the rights of the collectives. With collectives being told that their NIL deals are preemptively invalid, it's understandable they'd be upset. And litigious.

Sounds like this whole mess is far from settled.