On Thursday, President Trump entered the discussion surrounding payments for university athletes by signing an executive order that prohibits “wage payment” arrangements.
This order bars college athletes from receiving payments via third parties, although it does not apply to compensation from brand endorsements or similar transactions.
Additionally, the order directs the Secretary of Labor and the National Labor Relations Commission to safeguard non-debt sports. It also calls on the Attorney General and the Federal Trade Commission to implement measures that protect the rights of student-athletes and ensure the long-term stability of university athletics against potential antitrust challenges.
The landscape of college sports has transformed significantly in recent years, with schools investing millions to attract athletes, particularly in football and men’s basketball. Since 2021, university athletes have been allowed to profit from their names, images, and likenesses (NIL).
However, a mix of university policies and state regulations has created confusion around NIL transactions, prompting calls for a uniform federal standard.
“The policy of my administration is to preserve and expand university sports whenever possible,” Trump’s executive order stated. “It aims to create the stability, fairness, and balance essential for safeguarding student-athletes, athletic scholarships, and opportunities.
Earlier this month, a House Subcommittee passed a bill that would set national standards for NIL sponsorships.
Trump has shown interest in various sports issues during his second term, recently urging the Washington Commanders to revert back to their previous name, the Redskins.
Shortly after taking office, he signed an executive order aimed at banning transgender women from competing in men’s sports.
He has also hosted championship teams from hockey and baseball at the White House, participated in major events like the Daytona 500 and the Super Bowl, and attended the College Wrestling Championship as well as the Ultimate Fighting Championship Event and the FIFA Club World Cup Championship.
