❓WHAT HAPPENED: President Donald Trump signed an executive order aimed at protecting collegiate athletic scholarships and opportunities while regulating athlete compensation.
👤WHO WAS INVOLVED: President Trump, members of his Cabinet, and collegiate athletic departments.
📍WHEN & WHERE: The executive order was signed this week and applies to U.S. colleges and universities.
💬KEY QUOTE: “Opportunities for scholarships and collegiate athletic competition in women’s and non-revenue sports must be preserved and, where possible, expanded.” – Executive Order
🎯IMPACT: The order seeks to balance athlete compensation with the preservation of non-revenue sports and scholarships.
President Donald J. Trump signed an Executive Order this week aimed at possibly making substantial changes to the name, image, and likeness (NIL) policies that have rocked collegiate athletics. The Trump White House contends the presidential directive will “protect student-athletes, collegiate athletic scholarships and opportunities” by addressing the balance between colleges paying athletes and maintaining non-revenue generating athletic programs. However, critics contend that the order is unlikely to result in significant changes to the NIL as it is likely outside federal purview.
The order, released by the White House late Thursday, directs members of Trump’s Cabinet to devise a plan within 30 days to preserve college sporting opportunities based on the revenue generated by athletic departments. It explicitly prohibits “third-party, pay-for-play payments” but allows for “legitimate, fair-market-value compensation” for activities such as brand endorsements.
The executive order also calls for revenue sharing between colleges and athletes, emphasizing that “opportunities for scholarships and collegiate athletic competition in women’s and non-revenue sports must be preserved and, where possible, expanded.” This comes as the NCAA has loosened its restrictions on athlete compensation in recent years, raising concerns about the potential loss of scholarships and programs in sports that generate little revenue.
The order specifies that athletic departments earning over $125,000,000 in revenue during the 2024-2025 season should increase scholarship opportunities and maximize roster spots for non-revenue sports. For departments with revenues under $50,000,000, the order states that scholarships and roster spots should not be disproportionately reduced based on a sport’s revenue.
“Collegiate athletic departments with greater than $125,000,000 in revenue during the 2024-2025 athletic season should provide more scholarship opportunities in non-revenue sports than during the 2024-2025 athletic season and should provide the maximum number of roster spots for non-revenue sports permitted under the applicable collegiate athletic rules,” the order reads.
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