President Donald Trump signed an executive order aimed at safeguarding student-athletes and ensuring opportunities related to collegiate athletic scholarships. The order serves to prohibit “third-party, pay-for-play payments” while allowing for “fair-market-value compensation” for endorsements from businesses with a legitimate interest in the partnership.
This executive order aligns closely with the efforts of the College Sports Commission (CSC), which was created to manage financial issues in the new revenue-sharing landscape of college athletics. The CSC, in collaboration with Deloitte, introduced the NIL Go portal to help student-athletes navigate the complexities of Name, Image, and Likeness (NIL) deals. This portal provides a mechanism for athletes to report third-party NIL agreements for compliance evaluation to maintain their eligibility.
Significantly, the order emphasizes the need to expand scholarship opportunities and protect non-revenue sports, including Olympic disciplines. It asserts that any revenue-sharing among universities and student-athletes should be structured in a way that safeguards women’s and non-revenue sports.
In a unified front, Congressmen Brett Guthrie, Tim Walberg, and Jim Jordan expressed their gratitude towards President Trump for his dedication to enhancing the collegiate athletic landscape. They highlighted the SCORE Act, which aims to complement the president’s executive order by fostering a robust environment for college sports.
The White House’s announcement calls for coherent federal action to address the scattered NIL laws existing across various states, asserting that certain universities are increasingly dependent on external supporters to maintain competitive athletics, particularly in football.
NCAA President Charlie Baker responded positively to the executive order, while also urging Congress to take action. He noted that while the NCAA is making strides in improving student-athlete welfare through health benefits and scholarship guarantees, federal legislation is necessary to address existing threats to college sports. Baker emphasized the transformative opportunities that college sports afford young people and expressed a desire to collaborate with student-athletes, legislators, and the Trump Administration to enhance the collegiate athletic experience moving forward.
The focus on fair compensation for student-athletes and the protection of non-revenue sports is a progressive step towards creating a more equitable environment in college athletics, fostering better opportunities for all involved.