Leveling the Playing Field: What You Need to Know About the Sports Executive Order

By Ryan J. Regula, Charlene Anne Warner, and Lilly M. Harris

Against the backdrop of inconsistent state laws regulating college athletics, President Trump recently stepped onto the court with an executive order called “Saving College Sports.” The executive order declares a policy to preserve college sports by providing “the stability, fairness, and balance necessary to protect student-athletes, collegiate athletic scholarships and opportunities, and the special American institution of college sports.” The order directs federal regulators to achieve its purposes.

Background

Four years ago, the National Collegiate Athletic Association (NCAA) implemented a policy that allows students to profit from their name, image, and likeness (NIL) through brand deals.¹ In response, most states enacted legislation favorable to NIL deals in an attempt to assist their home teams with recruiting the best talent. Then, just a few months ago, the NCAA entered a settlement that permits universities to pay student athletes directly.² As a result, student athletes’ receipt of large scholarships and direct payments from universities and third parties have divided courts, regulatory agencies, and stakeholders over the question of whether student athletes should be classified as employees under the Fair Labor Standards Act.³ This sea change in NCAA policies and disparate state standards has created uncertainty about the future of college athletics.

Executive Order: Saving College Sports

Concern over the potential demise of amateurism and fragmented state policies related to college athletics have led many to call for a federal solution, but congressional efforts so far have ended in partisan stalemates. In response to this gridlock, on July 24, 2025, President Trump enacted an executive order that seeks to (1) preserve non-‍revenue producing sports, (2) curtail third-party, pay-for-play payments to collegiate athletes, (3) clarify the status of student athletes, (4) protect college athletics from lawsuits, and (5) protect the development of the U.S. Olympic team.

Protecting and Expanding Women’s and Non-Revenue Sports. The executive order states that collegiate athletic departments, depending on their revenue during the 2024 –‍ 2025 athletic season, should increase, maintain, or at least not disproportionately reduce scholarship opportunities and roster spots in non-revenue sports. Additionally, the order states revenue-sharing between colleges and student athletes should be implemented in a manner that, at minimum, preserves scholarships and opportunities in women’s and non-revenue sports. Accordingly, the order directs the Secretary of Education to advance these policies through “all available and appropriate regulatory, enforcement, and litigation mechanisms,” including funding decisions, enforcement of federal constitutional and statutory protections, and collaboration with Congress and state governments.

Prohibiting Third-Party Pay-for-Play Payments. Furthermore, the executive order states “third-‍party, pay-for-play payments to collegiate athletes . . . should not be permitted by universities.” However, this policy “does not apply to compensation provided to an athlete for the fair market value that the athlete provides to a third party, such as for a brand endorsement.” Like with the non-revenue-sports provision, the order directs the Secretary of Education to prohibit third-party, pay-for-play through “all available and appropriate regulatory, enforcement, and litigation mechanisms.”

Determining Student-Athlete Status. Additionally, the executive order directs the Secretary of Labor and the National Labor Relations Board to clarify “the status of collegiate athletes, including through guidance, rules, or other appropriate actions, that will maximize the educational benefits and opportunities provided by higher education institutions through athletics.”

Protecting College Athletics from Lawsuits. The executive order also directs the Attorney General and the Federal Trade Commission to review, revise, and implement “litigation positions, guidelines, policies, or other actions” that will protect “the rights and interests of student-athletes and the long-‍term availability of collegiate athletic scholarships and opportunities when such elements are unreasonably challenged under antitrust or other legal theories.”

Protecting the Development of the U.S. Olympic Team. Finally, the order directs the Assistant to the President for Domestic Policy and the Director of the White House Office of Public Liaison to consult with the United States Olympic and Paralympic Committee “about safeguarding the integral role and competitive advantage that American collegiate athletics provide in developing athletes to represent our Nation in international athletic competitions.”

The Game Plan

Although the order itself is not enforceable against private entities, the regulations that follow will be. Agencies will flesh out much of the order’s real-world application, including the difference between “revenue” and “non-revenue” sports and the meaning of “pay-for-play.” Thus, stakeholders should promptly consider a strategy for contacting federal regulators, and participate in the notice and comment process where applicable. Additionally, universities should prepare to implement compliance measures when federal guidance and regulations are finalized. Such guidance is likely to impact both ongoing and future litigation related to the payment and treatment of collegiate athletes.

*Any opinions expressed are those of the authors and not of the firm or the authors’ colleagues.