President Donald Trump signed an executive order on July 24 that prohibits “third-party, pay-for-play” payments to college athletes to tackle “bidding wars” that have recently engulfed college sports.
The order, called “Saving College Sports,” highlights a 2021 antitrust ruling from the Supreme Court that struck down restrictions on the National Collegiate Athletic Association’s transfer and recruiting rules. Afterward, it updated its rules to allow players to be paid for their name, image, and likeness (NIL) from third parties.
The rule changes created a “chaotic environment that threatens the financial and structural viability of college athletics,” a White House fact sheet says.
“But guardrails designed to ensure that these were legitimate, market-value NIL payments for endorsements or similar services, rather than simply pay-for-play inducements, were eliminated through litigation,” the White House said. “Other limits on player transfers among schools were also taken down through litigation.”…