LSU Faces New Investigation Over Secret NIL Deals

A major university faces the first high-profile test of new NIL enforcement rules as college sports' oversight era begins.

LSU Under CSC Investigation for Unreported NIL Deals - Football Not Involved

LSU is under the microscope as the College Sports Commission (CSC) investigates a potential violation tied to unreported name, image, and likeness (NIL) deals involving at least one athlete, according to a recently obtained email.

A source close to the situation clarified that this inquiry does not involve LSU’s football program. That’s a key distinction, especially considering the visibility and scrutiny surrounding football at powerhouse programs like LSU. Still, this marks a significant moment: it’s the first known case of a major athletic department being investigated under the CSC’s new enforcement protocols.

The CSC was formed last summer as part of the House settlement - a landmark agreement that reshaped the rules around athlete compensation. With it came a new level of oversight. The CSC’s role is to ensure schools and athletes are playing by the book when it comes to NIL deals, which now must be reported and verified for legitimacy.

In a Jan. 15 email to LSU athletic director Verge Ausberry, CSC head of investigations Katie B. Medearis wrote:

“The College Sports Commission is investigating whether a member of one of your institution’s sports teams failed to report one or more third-party Name, Image, and Likeness (NIL) deals in accordance with applicable rules.”

Medearis requested a phone call with Ausberry or someone from LSU’s compliance team within the week. While the email confirmed the inquiry, it didn’t include any details about the athlete or athletes involved. LSU’s response to the CSC wasn’t included either, so for now, the scope of the investigation remains unclear.

LSU, for its part, is keeping things close to the vest. In a statement, spokesperson Zach Greenwell said:

“We have been in regular communication with the CSC since the organization's formation and appreciate their ongoing collaboration and guidance. We anticipate this specific inquiry will be resolved shortly.

We will not comment further on regulatory matters.”

The CSC has already reached out to several schools across the country regarding similar concerns - specifically, athletes failing to report NIL agreements. Under the House settlement, any NIL deal worth more than $600 must go through a clearinghouse known as NIL Go, which vets each deal to ensure it has a legitimate business purpose and falls within a reasonable compensation range. Athletes or their representatives are responsible for reporting those deals.

LSU, like many Power Five programs, has leaned into the new NIL era. The school has fully funded its revenue-sharing program, which was capped at $20.5 million in the first year under the House agreement. Administrators have said they’re confident LSU can legally exceed that cap by facilitating valid third-party NIL deals - often in coordination with the school’s long-standing multimedia rights partner.

So what does this mean in the big picture? While the specific details are still under wraps, this inquiry signals that the CSC is ready to enforce the new rules with real teeth. NIL has changed the game in college sports - and now, the game is getting refereed.