Overview
On July 24, 2025, the White House released an executive order (EO) entitled "Saving College Sports." The following analysis provides a brief overview of the EO, including its potential impact on universities, NIL collectives, private investors, and other stakeholders in the college sports ecosystem.
Background
Since 2021, college athletes have been able to receive compensation for their name, image, and likeness (NIL), after the Supreme Court held that the National Collegiate Athletic Association's rules limiting education-related compensation violated federal antitrust law (NCAA v. Alston). Since Alston, college athletes have begun to receive compensation via third parties, and over 30 states have enacted their own NIL laws. This EO comes only a month after Judge Wilken in the Northern District of California approved a settlement in NCAA v. House, the terms for which have opened the door for college athletic departments to pay players directly, ousting longstanding NCAA rules prohibiting such payments.
The "Saving College Sports" EO
The impetus behind the EO is articulated as follows:
Waves of recent litigation against collegiate athletics governing rules have eliminated limits on athlete compensation, pay-for-play recruiting inducements, and transfers between universities, unleashing a sea change that threatens the viability of college sports. While changes providing some increased benefits and flexibility to student-athletes were overdue and should be maintained, the inability to maintain reasonable rules and guardrails is a mortal threat to most college sports.
The EO is intended to provide a framework to federal regulators, setting forth guiding principles and a mandate for further regulation. The EO proceeds in six sections:
Section 1 of the EO provides background and underscores the Trump administration's support of college sports as a uniquely American institution that provides transformative opportunities for student-athletes, contributes to local economies, and fosters national success, such as dominance at the Olympics. It further warns of perceived threats to collegiate athletics, including unrestricted NIL compensation, pay-for-play practices, and state-level NIL laws that undermine equity and stability as states attempt to compete with one another for top athletes. Section 1 advocates for preserving the educational and developmental benefits of college sports through national action, particularly to protect non-revenue sports and strike a balance in resource allocation.
Section 2, entitled "Protecting and Expanding Women's and Non-Revenue Sports and Prohibiting Third-party Pay-for-Play Payments," focuses on required actions by universities to preserve and expand financial and athletic opportunities in non-revenue and women’s sports, particularly for universities with high revenue. Section 2(a) creates a tiered system – potentially in tension with the House settlement – separating athletic departments into three revenue tiers. Those athletic departments exceeding $125 million must expand their scholarships and roster spots for non-revenue generating sports. The middle tier must maintain their scholarships and rosters for such sports, while the lowest tier must not "disproportionately reduce" such scholarships and roster spots. In further support of non-revenue generating sports, Section 2(b) broadly instructs that any revenue-sharing between universities and athletes should be conducted "in a manner that preserves or expands scholarships and collegiate athletic opportunities in women’s and non-revenue sports." Section 2(c) bans third-party, pay-for-play payments to athletes; however, it specifically creates an exception for compensation provided to athletes for third-party deals contracted at fair market value, such as brand endorsements. Lastly, Section 2(d) orders that within 30 days of the EO's issuance, the Secretary of Education, in consultation with other federal agencies, shall develop a plan to advance the policies outlined in Sections 2(a)-(c), utilizing "all available and appropriate regulatory, enforcement, and litigation mechanisms" to achieve these objectives.
Sections 3-5 are directed at various federal agencies and the steps each must take toward rulemaking and enforcement of the EO. Section 3 states that the Secretary of Labor and the National Labor Relations Board must clarify the employment status of collegiate athletes, with the goal of maintaining the educational and athletic opportunities offered by universities. Section 4 orders the Attorney General and the Federal Trade Commission (FTC) to create litigation guidelines and policies that protect the rights of student-athletes while safeguarding the availability of athletic scholarships. The EO also instructs the Attorney General and FTC to create a 60-day plan to revise current litigation stances and prepare future legal strategies to defend against challenges to collegiate athletics. Section 5 focuses on maintaining the pivotal role of collegiate athletics as the foundation for developing world-class athletes who represent the US in international competitions, particularly the Olympics. It requires collaboration with the US Olympic and Paralympic Committee to ensure that collegiate sports continue fostering athletic excellence.
Finally, Section 6 of the EO specifies that nothing therein can override existing statutory authority or create enforceable private rights. It also clarifies that implementation is subject to funding availability and ensures standard legal and administrative safeguards are in place to avoid unintended impacts.
Next Steps
At a time when the college athletics landscape was already in flux, particularly in the wake of the House settlement, this EO will inevitably have additional legal and compliance implications for all parties involved in college sports. Universities must consider the scholarship and roster directives outlined in Section 2, running afoul of which could lead to enforcement actions and enhanced federal scrutiny. Athletes, universities, NIL collectives, and third parties alike must also be mindful to develop compliance practices that avoid third-party pay-for-play, which is now prohibited under the EO. Finally, given that Sections 2(d) and 3-5 direct further rulemaking, all college athletics-related entities and individuals must be vigilant in monitoring additional rules and regulations as they emerge. Schools, agents, sponsors, and athletes should pay close attention to regulations and litigating positions proposed and adopted by the federal government in light of the new EO.
