In this week’s Film Room, we provide updates on:
- Recently published third-party NIL deal data
- Sports betting cases involving both college athletics and Major League Baseball
College Sports Commission NIL Deal Flow Report
On November 6, the College Sports Commission (CSC) published an NIL deal flow report that included data on third-party NIL deals through the end of October. According to the report, the CSC has cleared 12,175 deals totaling $87.5 million, an average of $7,187 per deal.
The report noted that 394 deals totaling $10.01 million, an average of $25,406 per deal, are “Not Cleared.” The release clarified that “Not Cleared” deals “do not include Not Cleared deals that have been resubmitted or for which the time period for revision remained open on October 31” and did not identify the number or dollar value of deals that remain subject to resubmission or revision.
As the CSC stated in a press release a few weeks ago, student-athlete ineligibility is a possible consequence of third-party NIL rule violations. While student-athletes are responsible for submitting third-party NIL deal information to the CSC, the NCAA Bylaws render institutions responsible for ensuring that student-athletes meet eligibility requirements in order to compete. A potential consequence to an institution for permitting a student-athlete to compete while ineligible is vacation of wins.
Notably, the report indicates that no deals are currently in arbitration. As a reminder, new NCAA Bylaw 23 provides a high-level framework for CSC dispute resolution via arbitration and contemplates measures for institutions to support student-athletes in that process.
Sports Betting Cases Involving NCAA Men’s Basketball and Major League Baseball
On November 7, the NCAA Committee on Infractions issued decisions in three separate sports betting cases, each involving men’s basketball. The cases highlight both the reach of sports betting risks—the cases involve programs in different conferences across Division I—and actions that entities in the industry are taking to monitor and quell those risks. The investigations benefited from bystander student-athletes, who recognized and reported violative conduct, and collaboration with an external integrity monitoring service.
On November 9, the US Attorney’s Office for the Eastern District of New York announced indictments charging two Major League Baseball pitchers with crimes in connection with allegedly throwing balls in certain situations, allowing bettors placing proposition (prop) bets to profit. The following statement from Major League Baseball is included in an ESPN report: “MLB contacted federal law enforcement at the outset of its investigation and has fully cooperated throughout the process. We are aware of the indictment and today’s arrest, and our investigation is ongoing.”
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