this is a good read on this topic and how they operate legally. Interesting comment how the ones who are setup as non-profits might survive IRS audits. The IRS actually is supposed to be aggressive in its audits of non-profits who have documentation problems. I am on a non-profit board, and the IRS often checks the organization out with audits.
NIL Collectives Are the Latest Patchwork Solution for College Athlete Pay
NIL collectives sprouted up at just about every university in the U.S. over the past two years, but insiders doubt their longevity.
globalsportmatters.com