WASHINGTON, D.C. — President Donald Trump on Thursday signed a wide-ranging executive order that aims to overhaul how college athletes are compensated, banning so-called “third-party, pay-for-play” arrangements while continuing to allow legitimate endorsements under name, image, and likeness (NIL) agreements.
The order, titled Saving College Sports, is the latest move to rein in a rapidly evolving college athletics landscape. It seeks to curb the rise of bidding wars for top athletes, often fueled by booster-backed NIL collectives, while ensuring that student-athletes can still benefit from fair-market-value deals.
What the Order Does:
- Bans Pay-for-Play Deals: Athletes and universities are prohibited from accepting compensation from third parties when the payments are meant to influence recruiting decisions or on-field performance, even if disguised as NIL contracts.
- Protects Legitimate NIL Opportunities: The order affirms the right of student-athletes to earn money through genuine endorsements tied to their name, image, and likeness—provided those deals reflect market value and aren’t tied to performance incentives.
- Supports Smaller Sports and Women’s Programs: It directs the creation of revenue-sharing and oversight mechanisms to shield non-revenue and women’s sports from financial harm amid the NIL boom.
- Clarifies Student-Athlete Status: Federal departments, including Labor and Education, are tasked with ensuring student-athletes are not reclassified as employees, reinforcing the educational nature of college athletics.
Context:
The executive order comes after a transformative few years in college sports, sparked by state laws passed in 2021 and landmark court rulings in favor of athlete compensation. These changes weakened the NCAA’s regulatory grip and opened the door to large, often unregulated payments from boosters under the guise of NIL deals.
In June, the NCAA and major athletic conferences agreed to an antitrust settlement allowing schools to distribute up to $20.5 million annually to athletes, officially as endorsements—but in practice, often functioning like salaries.
Trump administration officials argue the executive order is necessary to preserve the academic and developmental focus of college athletics and to prevent smaller programs from being left behind.
Reactions:
The move drew immediate pushback from advocates for athletes’ rights. Steve Berman, co-lead counsel in the recent NCAA antitrust settlement, criticized Trump’s order.
“Plain and simple, college athletes don’t need Trump’s help, and he shouldn’t be aiding the NCAA at the expense of athletes,” Berman said. “As a result of our case, college athletes are now free to make their own deals. For Trump to want to put his foot on their deal-making abilities is unwarranted and flouts his own philosophy on the supposed ‘art of the deal.’”
On the other side, NCAA President Charlie Baker praised the administration’s involvement.
“The Association appreciates the Trump Administration’s focus on the life-changing opportunities college sports provide millions of young people,” Baker said. “We look forward to working with student-athletes, a bipartisan coalition in Congress, and the Trump Administration to enhance college sports for years to come.”
What’s Next:
The full implementation of the order remains to be seen. Trump has directed federal agencies to develop enforcement mechanisms within 30 days, which may include conditioning federal funding on compliance with the order’s guidelines.
With legislative momentum in Congress stalled over how to address NIL and athlete compensation, the White House appears determined to act alone—for now.
