President Donald Trump signed a new executive order on July 24 that aims to restore fairness and stability to college athletics by banning what he calls “third-party, pay-for-play” payments to student-athletes. The move is part of a broader effort to stop what the administration describes as a growing crisis in the world of college sports, where bidding wars, rapid transfers, and commercial interests have taken control of player recruitment.
What the Executive Order Does
The order, titled Saving College Sports, prohibits colleges and universities from participating in or allowing third-party “pay-for-play” arrangements. These are deals where athletes receive money or other compensation from outside entities—not tied to legitimate sponsorships or endorsements, but simply as payment for joining a specific team.
“The future of college sports is under unprecedented threat,” the order reads. “A national solution is urgently needed to prevent this situation from deteriorating beyond repair.”
The White House made it clear that athletes can still earn money through fair-market NIL (name, image, and likeness) deals that are tied to actual endorsements or services. However, it draws a firm line against payments that function as disguised salaries for student-athletes.
“To preserve the critical educational and developmental benefits of collegiate athletics for our Nation,” the White House stated, “third-party, pay-for-play payments to collegiate athletes are improper and should not be permitted by universities.”
Why This Matters
Since a 2021 Supreme Court ruling struck down NCAA restrictions, student-athletes have been allowed to profit from their NIL rights. While many of these deals are legitimate, the rule changes also opened the door to unregulated bidding wars.
Trump’s order says this created an “out-of-control, rudderless system in which competing university donors engage in bidding wars for the best players, who can change teams each season.” Without proper limits, many athletes now choose schools based on the size of the NIL offers rather than academics or athletic fit.
According to the White House fact sheet, “Guardrails designed to ensure that these were legitimate, market-value NIL payments for endorsements or similar services, rather than simply pay-for-play inducements, were eliminated through litigation.”
Real-World Examples of Abuse
Examples of abuse have become widespread. One report from Brooklyn Law School noted that some high-profile athletes have accepted multimillion-dollar deals from third-party entities with little to no connection to real marketing efforts. In one case, a star quarterback was reportedly offered $2 million before even playing a single college game. Other athletes have accepted money through “marketing agencies” that are loosely affiliated with wealthy alumni or athletic boosters.
These deals have caused concern about fairness and the long-term survival of non-revenue sports. As more resources get funneled into football and men’s basketball, women’s and Olympic sports risk being cut or underfunded.
Scholarship Protections for Non-Revenue Sports
Trump’s executive order includes measures to protect non-revenue sports like swimming, track, gymnastics, and women’s athletics. Schools that earn over $125 million from athletics must increase scholarship offerings for these sports beyond what they provided in the 2024–2025 academic year. Schools that earn between $50 million and $125 million must maintain their current level of support.
“The executive branch will ensure that schools do not cut scholarships or roster spots for athletes in sports that do not bring in revenue,” the White House said. “We are making it clear that every student-athlete deserves a fair shot, regardless of the sport they play.”
The order also directs the Secretary of Education, Linda McMahon, to work with Attorney General Pam Bondi, Secretary of Health and Human Services Robert F. Kennedy Jr., and Federal Trade Commission Chairman Andrew Ferguson to develop an implementation plan within 30 days.
Reactions from Supporters
The NCAA praised the move. President Charlie Baker said, “The Association appreciates the Trump Administration’s focus on the life-changing opportunities college sports provides to millions of young people and we look forward to working with student-athletes, a bipartisan coalition in Congress, and the Trump Administration to enhance college sports for years to come.”
Leaders of the five major college sports conferences—the SEC, Big Ten, ACC, Big 12, and Pac-12—also issued a joint statement supporting the order. “We hope Congress sends federal legislation to President Trump’s desk as soon as possible,” they said.
Support also came from lawmakers. Reps. Jim Jordan, Brett Guthrie, and Tim Walberg, who helped pass the SCORE Act through a House committee earlier this month, said the order would help stabilize the NIL system and protect student-athletes. “We thank President Trump for his commitment to supporting student-athletes and strengthening college athletics in the NIL era,” the lawmakers wrote.
Criticism and Legal Questions
Not everyone supports the order. Critics say the executive branch may not have the legal authority to enforce these rules, especially since the current NIL system was shaped by court rulings.
Sam Ehrlich, a professor at Boise State University who studies college sports law, questioned how enforceable the order would be. “Is this just a threat or something that is actually going to lead to something?” he asked. “Will the executive branch actually insert themselves into these situations to enforce this? And what will be the unintended consequences if it does get followed up on?”
Noah Henderson, a professor at Loyola University Chicago, added, “This may not be a binding legal framework—but it’s absolutely a signal: that the federal government, and now presidential politics, are increasingly willing to intervene in the future of college sports.”
Others worry that the order could deepen political divides. “Without real bipartisan cooperation, this could make it harder, not easier, to pass comprehensive reform,” Henderson said.
A Desperate Move to Save a Broken System?
To some observers, the order is a welcome step—but it may be too little, too late. The NIL system has already changed the landscape of college sports so dramatically that simply banning third-party payments may not be enough to fix the damage.
“Absent guardrails to stop the madness and ensure a reasonable, balanced use of resources,” the executive order warns, “many college sports will soon cease to exist.”
Still, President Trump appears determined to act before the system collapses completely. “My administration will provide the stability, fairness, and balance necessary to protect student-athletes, collegiate athletic scholarships and opportunities, and the special American institution of college sports,” the order says.
The real test will be whether this order can hold up legally and whether schools, donors, and sponsors will actually change their behavior. College sports may never go back to what they were—but this could be the start of a new chapter.
FAM Editor: College sports has become corrupted beyond repair. These are athletes will little to no connection to the academic setting of which they are a part, they are merely highly lucrative farm teams for the professional leagues, drawing audiences from the Universities they supposedly represent (which they don’t really). College sports will spiral downward as students and alumni experience the failure of the facade of connection more and more – it is a feeling of doom on my part. If I actually gave a crap about college sports anymore, I might even be angry about it.
