A new college sports agency has rejected certain NIL deals involving donor-backed collectives. These collectives, formed to funnel money to athletes or schools, fail to meet NCAA rules requiring deals to serve a valid business purpose.

It officially ends any administrative restrictions to athletes’ NIL compensation within limits, but it allows schools and conferences to establish what is — and isn’t — permissible. Should the federal legislation pass, it would override current state NIL laws, which vary from border to border.

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 to funnel money to athletes or their schools.