President Donald Trump signed an executive order Thursday aimed at protecting “student-athletes and collegiate athletic scholarships and opportunities” while prohibiting “third-party, pay-for-play payments” to those athletes. The Fact Sheet of Trump’s EO reflects a push that is effectively in lockstep with the goals established by the College Sports Commission’s name, image and likeness clearinghouse.
Of note, the prohibition of third-party payments does not extend to “fair-market-value compensation” so long as that party has a legitimate business interest. Put another way, the executive order does not target brand endorsements with local and national companies, for instance.
The CSC was established to govern financial issues in the revenue-sharing era. In partnership with financial consulting firm Deloitte, it established an NIL Go portal to ensure fair market value and valid business purpose based on an actual endorsement. The NIL Go portal allows student-athletes a way to report third-party NIL deals to be evaluated for rules compliance. An athlete can do this before accepting a deal to ensure that their eligibility will not be impacted.
Trump’s order also contains several points emphasizing the expansion of scholarship opportunities and protection of non-revenue sports, including Olympic sports. Specifically, it “provides that any revenue-sharing permitted between universities and collegiate athletes should be implemented in a manner that protects women’s and non-revenue sports.”
It specifically directs the Secretary of Labor and the National Labor Relations Boards (NLRB) to clarify the status of student-athletes in the era of revenue sharing.
“We thank President Trump for his commitment to supporting student-athletes and strengthening college athletics in the NIL era,” Congressmen Brett Guthrie, Tim Walberg and Jim Jordan, who are joint chairmen on a committee trying to pass the SCORE Act through Congress, said in a statement. “The SCORE Act, led by our three committees, will complement the President’s executive order, and we look forward to working with all of our colleagues in Congress to build a stronger and more durable college sports environment.”
The White House’s announcement calls for federal action to “restore order,” citing the patchwork NIL laws in place in individual states. It also asserts that some universities are relying on outside supporters to field rosters worth more than $50 million, particularly in football.
NCAA president Charlier Baker endorsed the executive order, but also called on congress to act.
“The NCAA is making positive changes for student-athletes and confronting many challenges facing college sports by mandating health and wellness benefits and guaranteeing scholarships, but there are some threats to college sports that federal legislation can effectively address and the association is advocating with student-athletes and their schools for a bipartisan solution with Congress and the administration,” Baker wrote in a statement. “The association appreciates the Trump Administration’s focus on the life-changing opportunities college sports provides 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.”
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