Key Takeaways
- President Donald Trump’s executive order declares that NIL endorsement deals between third parties and student athletes should be permitted only for fair market value, and third party pay-for-play payments should be prohibited.
- The executive order implores colleges and universities to “preserve or expand” scholarships and athletic opportunities in women’s and nonrevenue sports as school begin to share revenue with student athletes.
- The newly outlined White House NIL policy largely mirrors the terms of the House v. NCAA settlement reached in June.
- President Trump issued several directives to federal agencies and actors with orders to use all mechanisms available to further the White House’s NIL policies, including federal funding decisions.
In the immediate aftermath of the House v. NCAA settlement,[1] President Donald Trump issued an executive order addressing the future of name, image and likeness (NIL) payments and the distribution of scholarships to college athletes under the NCAA’s new rules. In the executive order, titled “Saving College Sports,” the White House calls for “reasonable rules and guardrails” around athlete compensation in college athletics.
The executive order notes that the NCAA’s recent changes to its NIL rules have resulted in several states passing NIL-friendly legislation intended to provide a competitive advantage for schools in their state.[2] The executive order further states that Trump intends to end “bidding wars” between schools for the nation’s best players in revenue-producing sports and funding cuts to nonrevenue and women’s sports. Most significantly, the Trump administration declared the following:
- Revenue-sharing between schools and college athletes should be done in a manner that “preserves or expands” scholarships and athletic opportunities in women’s and nonrevenue sports.
- Third-party pay-for-play payments should be prohibited.
- Endorsement deals between third parties and student athletes should be permitted only for fair market value.
Directives to Athletic Departments and Federal Agencies
Following these policy declarations, Trump issued several directives to school athletic departments for the upcoming 2025-2026 athletic year. The executive order states that athletic departments that generated greater than $125 million in revenue from their prior athletic season should provide more scholarship opportunities to nonrevenue sports than they did during the previous season and provide the maximum number of roster spots for nonrevenue sports permitted under NCAA rules. It further states that athletic departments that generated greater than $50 million in revenue during the prior season should provide at least as many scholarship opportunities in nonrevenue sports as they did during the previous season and the maximum number of roster spots for nonrevenue sports. Finally, the executive order asserts that college athletic departments that generated $50 million or less in revenue during the prior season, or that do not have any revenue-generating sports, should not disproportionately reduce scholarships or roster spots for sports based on the revenue that the sports generate.
Trump then ordered multiple federal agencies and actors to take action to advance the White House’s policies and directives. The executive order calls for the attorney general and the chairman of the Federal Trade Commission to work to stabilize and preserve college athletics through litigation, guidelines and policies. The Department of Health and Human Services and Department of Education have been ordered to use all regulatory, enforcement and litigation mechanisms to advance the policies set out in the executive order – including federal funding decisions and the enforcement of Title IX. Additionally, the secretary of labor and the National Labor Relations Board have been ordered to clarify the status of college athletes in an effort to maximize educational benefits provided by higher education institutions through athletics.
Future Federal NIL Legislation
The executive order has no legal effect on the terms of the House settlement, but federal legislation that standardizes NIL through a national framework appears to be the Trump administration’s ultimate goal. In fact, the Student Collegiate Opportunities, Resources, and Education Act (SCORE Act) is a college sports reform bill that is expected to go to the House floor for a vote as soon as September.[3] The SCORE Act advances the policies and directives outlined in the executive order.
As schools, athletes, advertisers and collectives continue to adjust to the changes announced in the House settlement, the White House executive order adds a new layer to the future of NIL and scholarship rules for college athletes.
[1] https://www.bakerlaw.com/insights/house-v-ncaa-settlement-sparks-new-age-of-student-athlete-compensation/
[2] https://www.on3.com/nil/news/michigan-introduces-bill-to-ban-reporting-nil-deals-to-ncaa-stop-schools-from-assisting-in-investigations/
[3] https://energycommerce.house.gov/posts/cmt-subcommittee-advances-score-act-to-standardize-nil-for-student-athletes-to-full-committee
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