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Trump’s order limits eligibility, transfers, and payments, addressing fraudulent NIL schemes in college sports compensation and restoring balance in college athletics.
The new executive order was issued by President Donald Trump, who aims at transforming how college sports operations are conducted through regulation of player eligibility, transfers, and compensation, along with changes to NCCA rules. This decision has come after criticisms about the effect of money in college sports in recent times, specifically through name, image, and likeness (NIL) transactions. Student-athletes are going to have an opportunity to play for not more than five years, according to the new ruling. Additionally, it bars the athletes from transferring once during their undergraduate education period without having to face suspension in that process. Such measures are expected to create some stability among players.
Payment of the athletes is going to be regulated by the ruling, particularly targeting fraudulent NIL schemes in college sports compensation. According to the ruling, such schemes involve payments being done to athletes who do not deserve the extra amount of money that is being paid. The ruling further suggests the creation of a national register of all student-athletes and their contracts. There will be no leniency in terms of compliance with the new policies, because colleges can lose government funding due to violations, which can result in severe financial consequences for many colleges.
The president is clearly dissatisfied with the current situation in this regard, considering it unfair and chaotic. The measures taken by Trump occurred following several legislative amendments made recently, such as the Supreme Court decision in 2021 and a settlement agreement in 2025, permitting the sharing of revenue among athletes. They all led to the situation known as the out-of-control college sports NIL arms race impact on universities.
Even though some people think that this decision will restore harmony within college sports, others are sure that there will be court cases regarding whether the federal government has jurisdiction to make these laws mandatory. This statement was made shortly before the NCAA Final Four tournament, putting even more emphasis on the topic. According to Business Honor, this content clearly shows how the government is trying to regulate the fast-growing world of college sports.
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