Trump Takes on College Sports Pay-for-Play Chaos in New EO, Putting Federal Money Behind It – RedState

President Donald Trump signed an executive order Friday targeting the pay-to-play chaos in college sports, using federal influence to pressure universities over payments, transfers and eligibility rules (NIL).

The order says money poured into football and basketball has fueled an “arms race” that pushes schools to spend aggressively, simply to keep up. Schools accumulate debt as NIL and transfer rules ease, threatening women’s, Olympic and already strained sports sports budgets.

“The convergence of enormous pressures to win in football and basketball…has created an out-of-control financial arms race…pushing universities into debt…and harming the educational and graduation opportunities of student-athletes.”

Schools that fail to follow governing body rules on eligibility, transfers and compensation could now put federal grants and contracts at risk. The order requires federal agencies to evaluate whether schools are complying with athletic rules, and those that don’t could lose their federal funding.

The order targets NIL agreements as disguised payment schemes, particularly compensation that exceeds fair market value and is directly linked to sports participation.

“NIL Fraudulent Scheme” means compensation in excess of fair market value related to a student-athlete’s participation in intercollegiate sports.

It also prohibits the use of federal funds for zero payments, revenue sharing, or compensation related to coaching and recruiting roles.

The order cites major athletic programs carrying hundreds of millions of dollars in athletics-related debt, as well as growing deficits related to recruiting and competition. The executive order also imposes a five-year eligibility limit, a ban on professional athletes returning to college sports and stricter transfer rules related to graduation.

“These financial perils will inevitably siphon off funds intended for the teaching and research objectives of universities…”

On Friday, NCAA President Charlie Baker responded positively to Trump’s decision, but said a permanent solution still required Congress to act.

“Stabilizing college sports…still requires a permanent bipartisan federal legislative solution,” Baker said, adding that congressional action is needed to “seal the deal” on many of the issues raised.

As my colleague Becca Lower previously wrote, Baker is a member of the White House’s “Saving College Sports Roundtable,” which held its first meeting in early March to find solutions to NIL and other problems in college sports.

Learn more: The WH roundtable hopes to answer a tricky question: How can Congress address issues surrounding college sports?

The order also targets state laws that have helped defeat any national standard and directs the attorney general to challenge policies that conflict with state rules or burden interstate commerce. Legal analysts say the order likely exceeds presidential authority, since executive orders must be based on existing law or constitutional authority.

Existing federal court decisions already protect broader transfer rights and limit restrictions on NIL collective corporations, putting this order on a likely collision course with the courts as enforcement begins.

“Regardless, we are likely to see litigation challenging the EO from athletes and third parties,” one lawyer said, noting conflicts between the order and existing legal regulations.

Court rulings and state laws have dismantled the NCAA’s previous restrictions. NIL agreements, freer transfers and third-party collectives followed, without any real national standards being left in place. The order urges Congress to act, but it also sets the effective date of key provisions for August 1, signaling that Trump is not waiting for Capitol Hill to resolve this issue.

Schools could end up choosing between federal funding requirements and court rulings protecting movement and compensation for athletes, a conflict that will likely manifest as enforcement begins and challenges move to court.

The next round will be played out in courtrooms and statehouses, but Trump just made it clear that the federal government is done standing on the sidelines while college sports spiral further out of control.

Editor’s note: President Trump is leading America toward the “Gilded Age” while Democrats are desperately trying to stop him.

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