College watchdog eyeing possible NIL violations at between 5-10 Power Four schools, AP source says

The College Sports Commission is looking into possible rules violations at between five and 10 Power Four conference schools regarding payments to players.

According to CBS Sports, which first reported the existence of the queries, the questions involve potential violations of the $21.5 million per school spending cap that schools can share with players, along with third-party payments to players that allow them to circumvent the cap.

The CSC had asked questions at between five and 10 schools, though that does not confirm a full-scale investigation is taking place, a person familiar with the investigation process told The Associated Press on Friday. The person spoke on condition of anoymity because the cases have not been publicly disclosed.

Among the CSC's main functions is to monitor third-party deals with so-called “associated entities” — people and companies that do business with their respective schools — to make sure they are fairly valued and that they have a valid business purpose.

With athletic departments using third-party NIL to circumvent the cap, some schools are reported to be spending up to $50 million on their football rosters this year.

CBS Sports based its reporting on multiple unidentified sources, along with public records requests. It did not name the schools under investigation, nor did the person who spoke to AP.

The outlet published part of a memo sent to campus leaders in August stating the CSC’s investigations department was “actively conducting multiple, longer-term investigations into potential cap evasion and NIL-related violations by institutions, student-athletes, and certain third parties.”

Last month, the CSC reported it had cleared $227 million in deals between July 1 and Aug. 31 while rejecting deals worth $67 million. Deals the CSC rejects get sent back to the parties, who can rework them to make them conform, as happened at Nebraska earlier this year.

Though no case has reached this point yet, the CSC has the authority to deliver postseason bans on schools and restrict the amount they can spend on certain sports under the revenue-sharing cap. It can also declare players ineligible. All decisions are subject to arbitration.