Trump signs executive order to limit the influence of big money in university sports

(Patria) - U.S. President Donald Trump signed an executive order that the White House claims aims to curb the influence of large payouts in university sports like American football and men's basketball, Reuters reported.

The White House said the order would block "third-party payments, pay-for-play" to university athletes, without affecting fair market compensation for brand endorsements.

It also directs U.S. officials to "clarify" the legal status of student-athletes, and the White House said the changes would help preserve scholarships and competition in women's and non-revenue sports.

The order could have implications for the multi-billion dollar market for U.S. university athletes.

The National Collegiate Athletic Association (NCAA), which governs U.S. university-level sports, has long prohibited student-athletes from receiving compensation for sports beyond scholarships in an effort to preserve the amateurism of university sports and maintain fair recruiting conditions.

But in June 2021, the organization approved a temporary policy allowing university athletes to earn money by selling their name, image, and likeness (NIL) rights.

The policy allowed student-athletes to earn through activities such as signing autographs, promoting products or businesses, and making personal appearances, as long as those activities were legal in the state where the school is located.
In March 2025, the NCAA agreed to permanently abolish its rule that prohibited student-athletes from negotiating NIL deals before enrolling in school.

The change came a day after a legal settlement between the NCAA and a group of state attorneys general who had sued the organization, alleging that the restriction violated federal antitrust law.

"President Trump recognizes the critical role of college sports in fostering leadership, education, and community pride," the White House said.
Changes in recent years regarding NIL payments, the White House said, have "created a chaotic environment that threatens the financial and structural sustainability of college sports."