College Sports Commission, power conferences finalize participation agreement

The College Sports Commission and power conferences finalized terms of the participation agreement on Wednesday. The agreement was distributed to schools, as well.

Per the agreement, a copy of which was obtained by On3’s Pete Nakos, schools are required to waive their right to sue the CSC. Additionally, schools are to agree to the rules in place following House settlement approval, including roster limits and other NIL compliance rules. The expectation is schools will have two weeks to agree.

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If a school violates any of the rules in place by the participation agreement, they “shall be subject to fines, penalties or other sanctions for these matters,” the 11-page document reads. While punishments are not yet finalized, schools could lose out on conference revenue or receive a limited postseason ban if they – or other associated entities – file suit against the CSC.

“Participant understands that full compliance with the Membership Rules is critical to the future success of college athletics,” the document reads. “Participant agrees to operate in good faith at all times and promote and direct compliance with the Membership Rules by its Representatives, student-athletes, and Associated Entities and Individuals.”

With regard violations of the participation agreement, schools will be able to present information to the College Sports Commission “in a timely manner and prior to any final decision” to mitigate its responsibility. The CSC will then consider arguments from schools with regard to violations in question.

News of the potential participation agreements with the CSC broke in May ahead of House settlement approval. That came in June when Judge Claudia Wilken issued final approval, ushering in the revenue-sharing era in college athletics.

Per terms of the 10-year agreement, revenue-sharing arrived in college sports as schools are now able to directly share up to $20.5 million with athletes. It also established the NIL Go clearinghouse, run by Deloitte, to vet NIL deals worth more than $600. Per the most recent report, NIL Go has cleared more than $87.5 million in deals.

Once the settlement went through, the CSC launched with former Major League Baseball executive Bryan Seeley as CEO. The organization then brought in former federal prosecutor Katie Medearis last month as its head of investigations.