Well, it’s neither. The NCAA rules say that UT cannot communicate with Spyre to use them as an inducement in recruiting. However, there is nothing that prevents them or the collective for any other school from making an offer to any person, recruit or otherwise. The loophole is very simply that all of these deals will require personal appearances in a specific city. That’s how they are getting around these deals being tied to enrollment in a school or participation on a team, which is not allowed. There’s no regulation over deals that require a person to make appearances in a specific place. And since NIL is legal for high school students in most states as well, the NCAA cannot prohibit collectives from talking to high school students, as long as it is allowed by state law we are applicable.
In case I’m not being clear, a collective or a business itself can’t tell a kid that if they sign with Tennessee they will get X number of dollars every year. They can tell them that if they live in Knoxville, there will be the opportunity for them to make X number of public appearances for X number of dollars. That’s legal, as long as the school itself is not using it as part of their recruiting pitch. But the collectives are very specific in wording the agreements to require those appearances or autograph sessions or whatever to occur at a time that a person must be in the city where they would be participating in a sport. It’s all in the margins, but the reality is that the NCAA cannot regulate who can talk to people, that’s just not legal. They can limit what coaches and other representatives of their member schools can do, but they can’t stop you and I from doing it and expect for it to stand up in court.