NIL Collectives Are Bypassing the Clearinghouse — What It Means for Athletes
The NIL era was supposed to open doors for college athletes. A chance to finally monetize name, image, and likeness without fear of penalty. But just a few years in, and in the case of NIL Go – months in, the system built to regulate those deals is already cracking. Collectives, frustrated with delays and red tape, are deciding to bypass the NCAA’s NIL Go clearinghouse altogether — and that has huge implications for athletes and their futures.
After the House v. NCAA settlement, Division I athletes were told any NIL deal worth more than $600 had to be filed through a system called NIL Go. The pitch was simple: create transparency, ensure deals are legitimate (not hidden pay-for-play), and protect athletes from exploitation.
On paper, it’s a safeguard. In practice, it’s a bottleneck.
According to Front Office Sports, the NIL Go system is already showing serious cracks:
Deals submitted are taking weeks — sometimes months — to clear.
Some collectives have been paying athletes before approval just to keep things moving.
Other deals are not submitted at all because athletes do not trust the process or do not know how to use the software.
The College Sports Commission (CSC), which enforces compliance, has just four full-time staff members trying to review thousands of deals. Deloitte and outside law firms are stepping in, but it is too little too late and not nearly enough.
One insider put it bluntly: “We’re literally looking at a system collapsing within the first five months of it being launched.”
On forums like Reddit’s CFB community, fans and insiders are sharing what is happening in real time:
Collectives are skipping NIL Go altogether.
Athletes who wait for approval risk losing leverage compared to those who just take the money off the books.
Compliance is being rewarded with frustration, while those who bypass rules seem to benefit.
That is regulatory arbitrage in action — when rules create too much friction, players in the system find ways around them.
This might sound like inside baseball, but for collegiate athletes all of this is serious business:
Eligibility Risks – If you accept money for a deal that is not approved, you could put your eligibility in jeopardy.
Uneven Playing Field – Bigger collectives with resources may push around the rules, while smaller programs get stuck waiting.
Market Distortion – Delays incentivize deals under $600 just to avoid NIL Go, which undervalues what athletes are actually worth.
Trust Issues – If athletes do not believe in the system, compliance collapses — and chaos takes over.
The current NIL Go framework is flawed, but perhaps it is not beyond saving. Possible solutions include:
Tiered Review – Fast-track small-dollar deals, reserve deep review for large or complex contracts.
Provisional Approval – Let deals go live while they are pending review, instead of making athletes wait months.
Better Tech & Training – Make NIL Go easier to use and educate athletes on the submission process.
Audit System – Allow self-reporting with random audits to keep collectives honest.
More Resources – Four staffers cannot oversee thousands of deals. Real enforcement needs real investment. It is time to hire more staff – period.
The big question: will the NCAA and CSC crack down, or will collectives force a rewrite of the rules? If athletes start facing penalties for unapproved deals, it could trigger lawsuits and bigger battles about whether the clearinghouse is even workable.
For now, the message to athletes is clear: be smart, be cautious, and do not assume everyone playing fast and loose with NIL rules will escape the consequences.
At Ball ’N Play Sports Agency, we track these developments daily because they directly impact the athletes we represent. NIL is opportunity, but it is also a minefield. Knowing the rules — and where the cracks are — can make the difference between getting paid and getting burned.
If you would like more more insights on NIL, recruiting, and athlete advocacy, then check out our Triple-A Ball ’N Play Podcast and the Chalk Talk Book Club at BNPSportsAgency.com.
