On April 23, Judge Claudia Wilken tentatively found that she could grant final approval of the landmark settlement in the House litigation, with the exception of certain proposed roster-limit provisions. While the parties work to address the remaining roster-limit issues, universities, conferences and athletes are otherwise continuing to prepare for final approval of the settlement, including the much-discussed provisions that will permit schools for the first time to share revenue directly with student athletes up to a “cap,” initially set at $20.5 million per school, for the 2025-26 season. The settlement terms also include new rules that will govern NIL deals that college athletes may enter.

Specifically, under the proposed settlement, college athletes can continue entering NIL deals both with entities (or individuals) affiliated with their universities and with unaffiliated third parties. Any NIL deal worth more than $600 must be reported to a third-party clearinghouse, which Deloitte will operate. Further, under the settlement, any NIL deal with an affiliated entity must be “for a valid business purpose” with “compensation at rates and terms commensurate with compensation paid to similarly situated individuals with comparable NIL value.” If it is determined that an affiliated NIL deal does not comply with this standard (which some have referred to as the “fair-market-value test”), an athlete may challenge the determination in arbitration.

The purpose and intent behind the........

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