U.S. authorities on Friday issued an executive order aimed at reinforcing regulatory guardrails governing college athletics, seeking to shore up the finances of collegiate sports programs and secure their long-term viability.
The order instructs federal agencies to take steps to increase the effectiveness of critical rules that regulate transfers, eligibility and pay-for-play arrangements. It directs agencies to evaluate whether breaches of those rules should disqualify a university from receiving federal grants and contracts.
Specifically, the order calls on the relevant governing bodies to update their rulebooks by creating clear eligibility limits, establishing defined transfer rules and banning what it labels "improper" financial arrangements. The prohibition is aimed at pay-for-play agreements facilitated by collectives and organizations that operate in similar ways.
Alongside the executive actions, the order urges Congress to move quickly to pass legislation addressing these matters.
The move is the latest in a series of initiatives intended to limit third-party financial influence on recruiting in high-revenue college sports. In July, an earlier executive order sought to block some recruiting payments made by third parties to college athletes competing in big-money sports such as football and men’s basketball, with the stated objective of preserving funds for women’s and other non-revenue sports.
Administration officials have publicly argued that the rising costs of big-time college football programs are exerting pressure on college athletic budgets more broadly. At a White House event a month ago, that concern was reiterated and a commitment was made to issue a more comprehensive executive order to address the issue.
The order highlights the increasing value of name, image and likeness, or NIL, agreements, noting that NIL contracts have been growing in value, particularly for football players. Those rising NIL costs are cited as creating a financial burden for some colleges, with the result that a number of institutions are being forced to eliminate other sports programs.
The order also recalls changes in NCAA policy over the past several years. Until five years ago, the NCAA prohibited college athletes from receiving compensation for the use of their name, image and likeness. Following a 2021 Supreme Court decision, the NCAA altered its rules to permit college athletes to be paid for NIL opportunities.
While football and basketball draw the most attention among college sports, the order points out that many non-football college athletes play a critical role in supporting Olympic programs. College athletics currently support over half a million student-athletes and provide nearly $4 billion in scholarships annually, and produced 75% of the 2024 U.S. Olympic Team.
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