The College Sports Commission has circulated a memo to Division I athletic directors clarifying how the NCAA’s valid-business-purpose standard applies to name, image and likeness arrangements. The guidance, referencing NCAA rule 22.1.3, says most NIL agreements submitted for review—and particularly those proposed by donor-funded collectives—fail to qualify as having a legitimate business purpose because they are primarily designed to compensate athletes rather than offer goods or services for profit to the general public. While the CSC’s memo criticizes conventional collective structures, it also states that payments to athletes can continue if the sponsoring activity demonstrably meets the valid-business-purpose test. The clarification places renewed scrutiny on hundreds of existing and planned collective agreements and may force athletic departments and boosters to restructure deals to remain compliant with NCAA rules.