The new agency in charge of regulating NIL deals in college sports has rejected deals between players and donor-backed collectives.

The new agency in charge of regulating name, image, likeness deals in college sports sent a letter to schools Thursday saying it had rejected deals between players and donor-backed collectives formed over the past several years.

Those arrangements hold no “valid business purpose,” the memo said, and don’t adhere to rules that call for outside NIL deals to be between players and companies that provide goods or services to the general public for profit.