Thing is, there is not such things as "fair market value" if there's NIL coming from 3rd parties. You can only determine what's fair value in a system that has upper bounds on it. If they truly are going on FMV, most of these deals should be either nixed or cut down severely. We shall see.
If you look at the list of activities where the Student Athlete can be paid, I do believe there is a fair market value established. Agents negotiate that value all the time, whether it be in sports or otherwise.
I think this gives us a sense of areas where the athletes can earn money:
What is NIL? NCAA Name, Image, Likeness Rule Explained
1> Autographs and memorabilia
2> Camps and Clinics
3> Personal Appearances
4> Merchandise
5> Affiliate/Ambassador roles
6> NFT’s
7> Blogging
8> Podcasting
9> Public Speaking
10> Music/art etc
A lot of that list allows for research into values for the work performed. Is there a range? Of course. But Penn State cannot have a booster pay Gavin McKenna $300,000 for a speaking appearance when the ex-President of the United States doesn’t get that. It would have to be matched against other similar athletes and their registered appearance fees.
Keep in mind that we are also talking about Canadians. A Canadian cannot perform an appearance fee in the USA. So, really, they are somewhat limited to Affiliate/Ambassador roles for Canadian companies, Podcasting, Blogging, and Merchandizing opportunities. They need to fulfill their commitment on Canadian soil.
I really don’t feel this is as difficult as many expect. If it looks like a duck, walks like a duck, and quacks like a duck, it’s usually a duck. The onus will be on the athlete to justify their income, not the other way around.
IMO, they will be paid an amount that is commensurate of their status in their sport and anything extra through NIL will be subject to justification. It will not be the auditor there to fight against it, it will be the athlete that will have to justify it as fair market value. When it looks odd, they will need to justify it as will the organization/company that is giving the fee.