NIL enforcement czar: Influx of third-party deals is not what many school leaders expected

College sports faces a new reality as football team rosters approach the $30 million mark, largely funded through third-party payments that have overwhelmed the regulatory system designed to manage them, according to the College Sports Commission’s latest update.

Bryan Seeley, who heads the CSC, reported Tuesday that the current landscape has diverged significantly from what many founders of the new compensation system envisioned. While the framework technically operates within established rules, the rapid proliferation of third-party deals has created unforeseen challenges for the commission’s oversight capabilities.

“I do get the sense that some schools had the belief that the settlement as implemented had not sort of matched what they expected,” Seeley acknowledged during his progress report. “I think that’s a fair thing to say.”

The CSC revealed a 65% increase in third-party payment arrangements over the past two months among Power Four conference schools. These “associated deals” allow universities to circumvent the $20.5 million salary cap imposed on direct player payments, creating a parallel compensation system that has quickly outpaced expectations.

These arrangements require schools to submit contracts to the CSC for review to ensure they serve a “valid business purpose” beyond simple pay-for-play scenarios and are fairly priced. However, the volume has significantly exceeded initial projections.

“There was a belief that perhaps up to 90% of deals flowing through the system would do so automatically that would not need any kind of human review,” Seeley explained. “It must have been based on an assumption that this would be a somewhat organic market with a lot of not associated deals. And that is turning out to be not the case.”

The surge in third-party agreements has generated increased scrutiny of the CSC’s operations, particularly regarding delays in contract approvals. More fundamentally, it has raised concerns about the sustainability of college athletics when competitive roster costs have escalated dramatically less than a year after the implementation of the House settlement, which allowed schools to share revenue directly with players while permitting supplementary third-party arrangements.

The issue has gained national attention, reaching as high as the White House. Last week, President Donald Trump convened a summit with sports industry leaders to address the spiraling costs. Trump characterized the financial situation as “astounding” and promised an executive order this week to address challenges facing universities.

“The amount of money being spent and lost by otherwise very successful schools is astounding, just in a short period of time. And it’s only going to get worse,” Trump stated.

Beyond the financial implications, the CSC faces additional challenges regarding its enforcement authority. A critical “participation agreement” that would empower the commission to enforce regulations remains unsigned by all 68 Power Four schools. Several institutions and states have expressed reluctance to sign, with some objecting to language prohibiting litigation against the commission.

Seeley emphasized the importance of this agreement during NCAA meetings in January, but progress has stalled. After nearly two months of negotiations and modifications, some of which Seeley believes have “weakened the document,” the agreement’s future remains uncertain.

“If we don’t have a participant agreement, we’re going to still try to do what we need to do,” Seeley said. “But I think those tools are really important.”

The situation highlights the complex transition collegiate athletics is experiencing as it adapts to a new compensation model. The rapid evolution of player payment structures has created a marketplace that differs substantially from what regulatory frameworks were designed to manage, raising questions about long-term sustainability and competitive balance across institutions with varying financial resources.

As universities navigate this new landscape, the CSC continues its efforts to establish effective oversight mechanisms while addressing the unexpected volume and complexity of third-party arrangements that have quickly become central to collegiate athletic recruitment and retention.