On July 24, 2025, President Trump issued an executive order aimed at addressing recent legal developments that have changed traditional college sports structures, particularly regarding athlete compensation, transfer rules, and the proliferation of state-level name, image, and likeness (NIL) laws.
The executive order includes six key policy directives:
1. Protection and Expansion of Women’s and Non-Revenue Sports
- Athletic departments with more than $125 million in revenue are directed to increase scholarship opportunities and maximize roster spots in non-revenue sports compared to the 2024-2025 season.
- Athletic departments with revenues between $50 million and $125 million must maintain at least the same level of scholarship opportunities and roster spots in non-revenue sports as the previous year.
- Athletic departments with revenue below $50 million, or without revenue-generating sports, are instructed not to disproportionately reduce opportunities based on a sport’s revenue.
2. Prohibition of Third-Party Pay-for-Play Payments
- The order states that third-party pay-for-play payments to collegiate athletes are improper and should not be permitted by universities. However, it allows for fair market value compensation for legitimate endorsements and services.
3. Federal Agency Action and Regulatory Enforcement
- The Secretary of Education, in consultation with other federal agencies, is tasked with developing a plan within 30 days to advance these policies through regulatory, enforcement, and litigation mechanisms. This may include leveraging federal funding, enforcing Title IX, and addressing unconstitutional state actions affecting interstate commerce.
4. Clarification of Student-Athlete Status
- The Secretary of Labor and the National Labor Relations Board are directed to clarify the employment status of collegiate athletes, with the goal of maximizing educational benefits and opportunities.
5. Legal Protections for College Athletics
- The Attorney General and the Federal Trade Commission are instructed to review and revise litigation positions and policies to help preserve the long-term availability of collegiate athletic scholarships and participation opportunities, particularly when challenged under antitrust or other legal frameworks.
6. Support for U.S. Olympic Development
- The order calls for consultation with the United States Olympic and Paralympic Committee to safeguard the role of collegiate athletics in developing athletes for international competition.
Impact and Outlook
It remains unclear how much practical change the executive order will bring to college athletics since it does not create enforceable rights for private parties. Key terms such as “fair market value” or “student-athlete status” remain undefined. Many open questions are likely to be addressed through subsequent agency action.
Interested parties should monitor developments across federal agencies in response to the executive order. However, lasting changes to the college sports regulatory landscape will likely require congressional legislation.
The college athletics environment continues to evolve rapidly. For questions or guidance, contact Varnum’s NIL Practice Team to ensure compliance with applicable rules and regulations.
