Donald Trump signs executive order banning ‘pay-for-play’ deals in college sports
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President Donald Trump has signed an executive order related to college sports.
The order has been long-rumored but was officially signed on Thursday afternoon. According to an official White House statement, the bill will restrict “pay-for-play” arrangements for student-athletes. However, the bill still allows for “legitimate, fair-market-value compensation” from third-parties.
With student-athletes now able to earn money from revenue-sharing as part of the House settlement agreement that was finalized earlier this year, attention has turned toward NIL agreements that have had very little oversight in recent years. NIL payments from collectives and other third-party institutions were expected to face increased scrutiny moving forward even prior to this executive order being signed. NIL deals worth more than $600 have to be approved by an NIL clearinghouse operated by Deloitte.
President Trump’s executive order also addressed women’s sports. Per the White House statement, the order “requires the preservation and, where possible, expansion of opportunities” in women’s and non-revenue sports. The statement also says the order will take steps to “protect” non-revenue and Olympic sports as it relates to revenue-sharing.
It remains to be seen whether this executive order will have a significant financial impact for college football players. Noted attorney Darren Heitner pointed out that “pay-for-play” deals have already been technically illegal since July 1, 2021.
Revenue-sharing for the 2024-25 season — not including external NIL agreements — is capped at approximately $20.5 million for each athletic department, per the terms of the House settlement. That number is expected to increase in future years.
Here is the full executive order obtained by Yahoo!’s Ross Dellenger:
Spenser is a news editor for Saturday Down South and covers college football across all Saturday Football brands.
