President
Trump’s order asks federal agencies to work toward preserving scholarships for athletes in women’s and non-revenue sports, including by asking the
The order also seeks to prohibit third parties from directly paying students for their athletic performance, though does not address brands who pay for endorsements.
The president also directed the
College athletes are able to profit from their name, image and likeness after a 2021 US Supreme Court ruling eased previous restrictions on their ability to accept brand deals or endorsements, leading to a $1 billion enterprise that has seen students leverage their athletic prowess to secure lucrative payouts.
While the changes finally helped athletes tap into the monetary rewards of the multi-billion dollar college sports industry, the new landscape has also drawn criticism from prominent stakeholders. Athletes now frequently transfer universities to obtain bigger paydays, leaving coaches and fans facing roster turnover and pulling schools into a fierce contest to draw the most prominent stars under rules that vary from state to state.
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Trump’s efforts to limit the reach of payments and deals that athletes can obtain reflects the lobbying of some of college sports’ most prominent figures, including former Alabama head football coach
Saban has been vocal about his concerns over NIL, calling the current system “unsustainable.” Saban and others have warned that the rise in NIL — and in particular larger universities’ rush to form so-called collectives that enable rich donors and alumni to flood programs with cash — will create a lopsided system that reduces competitive balance among schools.
The former coach met with Trump in May. Trump also spoke to Alabama Senator
The Trump administration reportedly was also considering creating a presidential commission on college athletics that would have been led by Saban and Texas energy executive Cody Campbell, but plans for that stalled in hopes of Congress pursuing legislation that could help address issues in college sports.
Legislation would create national standards for NIL deals while also crafting antitrust exemptions for athletic conferences and the NCAA. Critics say that bill would give too much authority to the NCAA at the expense of student-athletes.
Proponents of the system argue that major universities are profiting off of ticket sales and television revenue thanks to the exploits of their athletes — many of whom are unable to work jobs or internships due to their athletic and academic commitments. NIL has disproportionately benefited male football and basketball players, while female athletes tend to bring in smaller sums from such deals.
The NIL order is the president’s latest foray into sports and yet another example of how Trump has sought to put his imprint on higher education in the US. Trump targeted the University of Pennsylvania by freezing about $175 million in federal funding in a clash over school policies that allowed transgender athletes in women’s sports. The school eventually reached a deal with the Trump administration.
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Meghashyam Mali, Michelle Jamrisko
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