Greg Byrne clarifies plan for punishments under new NIL deal vetting process

One of the key terms in the House v. NCAA settlement, an NIL clearinghouse is rolling out. Called NIL Go, it will vet deals worth more than $600, and there are questions about what potential punishments would look like.

Now that the settlement received final approval, Alabama athletics director Greg Byrne clarified that plan. Speaking on McElroy and Cubelic in the Morning, he pointed out the process if a deal is flagged.

NIL Go – maintained by Deloitte – will fall under the purview of the newly formed College Sports Commission, headed by former MLB executive Bryan Seeley. The goal is for a quick process, Byrne said, and “checks and balances” will take place with regard to consequences.

“If there’s a deal that is flagged saying it’s not legitimate or it’s above range of compensation, fair market value – the terms that are being used – then the student-athlete has an opportunity to re-negotiate the deal, then re-submit it,” Byrne said. “If they don’t think that’s right, then there’s an arbitration that can happen with that. The goal is to have it be handled very, very quickly and efficiently. And we need that to happen. If they go ahead and play the young man or woman when it has been deemed not a legitimate deal, there will be consequences. Anything from eligibility to – there’s differing levels.

“To be honest, I’m learning about how all that works right now. I’ll have a better answer for you in six months from now. But there are checks and balances from a consequence standpoint that, hopefully, we’ll have some teeth to it to where people will say, ‘Hey, I’ve got to live within the rules that have been created.'”

According to the College Sports Commission website, deals fall into one of three categories – “Cleared,” “Not Cleared” or “Flagged for Additional Review” – through NIL Go. Loss of eligibility is also listed as a punishment. The clearinghouse was one of the key terms of the House v. NCAA settlement, and it is in the early stages of its rollout.

As the settlement went through the approval process, though, schools were bracing for the clearinghouse to go into place. In the meantime, programs front-loaded deals during the transfer portal windows.

However, the sense is the price of top positions – such as quarterbacks – likely will not go down thanks to of revenue-sharing funds and third-party NIL deals. Sources have told On3’s Pete Nakos that combination is leading to top budgets that could touch $25 to $30 million.