
Trump Bans Third-Party Pay-for-Play Payments to College Athletes
The executive order aims to protect student-athletes and establish guidelines in alignment with the College Sports Commission's NIL initiatives.
President Donald Trump signed an executive order July 24, 2025, aimed at protecting “student-athletes and collegiate athletic scholarships and opportunities” while prohibiting “third-party, pay-for-play payments” to these athletes. The Fact Sheet of Trump’s EO shows a push that coincides with the objectives outlined by the College Sports Commission’s name, image and likeness clearinghouse.
Notably, the ban on third-party payments does not include “fair-market-value compensation” as long as the party has a legitimate business interest. In simpler terms, the executive order does not target brand endorsements with local and national companies.
The College Sports Commission was created to oversee financial matters during the era of revenue-sharing. In collaboration with financial consultancy Deloitte, it launched an NIL Go portal to guarantee fair market value and valid business purposes in genuine endorsements. The NIL Go portal allows student-athletes to report third-party NIL agreements for compliance evaluation before accepting offers, ensuring their eligibility remains unblemished.
Trump’s directive also highlights the need for more scholarship opportunities and protection for non-revenue sports, embracing Olympic sports. Notably, it states that revenue-sharing permitted between universities and collegiate athletes must be structured to preserve women’s and non-revenue sports.
Moreover, it directs both the Secretary of Labor and National Labor Relations Board (NLRB) to elucidate the status of student-athletes amid the revenue-sharing era.
“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 said in a joint statement. “The SCORE Act, spearheaded by our three committees, will complement the President’s executive order, and we look forward to collaborating with all of our colleagues in Congress to develop a resilient college sports environment.”
The White House announcement advocates federal initiatives to “restore order,” pointing to the varying NIL laws from state to state. It also claims that some universities depend on external supporters to maintain rosters valued at over $50 million, mainly in football.
NCAA President Charlier Baker has shown support for the executive order but has urged Congress to take action.
“The NCAA is making significant advancements for student-athletes and addressing the challenges confronting college sports by mandating health and wellness benefits and guaranteeing scholarships, but there are existing threats that federal legislation could effectively tackle. The association is advocating with student-athletes and their institutions for a bipartisan solution with Congress and the administration,” Baker stated. “The association appreciates the Trump Administration’s attention to the transformative opportunities college sports provide millions of young individuals, and we are eager to collaborate with student-athletes, a bipartisan coalition in Congress, and the Trump Administration to upgrade college sports in the years to follow.”