Trump Steps In As College Sports Turn Into A Money-Driven Free-For-All

President Donald Trump recently signed an executive order to reshape college sports, targeting what the White House described as “an out-of-control financial arms race” driven by Name, Image, and Likeness (NIL) rules.

Trump’s order, signed last week, places new limits on eligibility and transfers, allowing collegiate athletes five years of eligibility and restricting most to one transfer, with an additional transfer permitted after earning a four-year degree. The order seeks to “ensure that the transfer window does not incentivize interference with athletic seasons or the academic year, or otherwise undermine the integrity of participation and competition in college athletics.”

“Fair competition cannot occur without a consistent set of rules concerning pay-for-play or player eligibility that cannot be endlessly relitigated in court,” Trump’s order states.

The policy is set to take effect on August 1 and threatens to withhold federal funding from universities that do not comply.

The order follows a series of court rulings, including a Supreme Court decision, that weakened the NCAA’s ability to restrict athletes’ compensation, fueling the rapid expansion of NIL deals and a more fluid transfer portal. Under the current NIL system, athletes can move freely between programs while negotiating compensation.

The shift has increased financial pressure on universities, which the order says is “driving universities into debt, threatening to siphon resources from other sports, and damaging student-athletes’ educational and graduation opportunities.”

Trump’s order also prohibits professional athletes from returning to collegiate competition, closing a loophole that allowed some players who had played professionally in Europe or in the NBA’s G League to join college teams.

The White House argues that the current system is straining universities and could jeopardize non-revenue sports.

“Absent a comprehensive national solution, therefore, the escalating financial demands to succeed in football and basketball combined with the significantly loosened rules governing eligibility, transfers, and pay-for-play schemes may force curtailment of women’s and Olympics sports, and may even jeopardize the overall financial well-being of universities with which the Federal Government has important financial relationships,” the order continues.

College sports fans and many coaches have criticized the apparent lack of structure for the transfer portal after the introduction of NIL. Since college football and basketball players have begun receiving compensation, with some athletes negotiating massive contracts, many fans argue that major college sports have turned into semi-professional leagues.

Coaches, meanwhile, have complained that NIL paired with a wide-open transfer portal hurts player and program development. With college athletes now eligible to sign contracts, players effectively become free agents immediately after the season as they or their agents shop for more favorable contracts.

The order, which will likely face a flurry of lawsuits, urges Congress to codify the president’s policies into law and protect college sports in the long term. Courts have consistently ruled in favor of athletes on NIL matters, making it nearly impossible for the NCAA to impose restrictions on transfers and eligibility.

The “Power 4” college sports conferences lauded Trump’s action last week and renewed their calls for Congress to pass legislation addressing the issue. A piece of legislation, called the SCORE Act, was introduced in the House last summer to address some of the issues around NIL and college athlete eligibility. The bill has bipartisan support but faces scrutiny from lawmakers and has stalled in committee.

Hall-of-fame former Alabama football coach Nick Saban also praised Trump for leading the effort to enact “regulation that would help us manage and fund all sports, so that we can continue to create opportunities for young people.”

Former University of Michigan quarterback David Cone, the co-host of On3’s sports talk show “Crain & Cone,” told The Daily Wire that Congress ultimately needs to act for anything to change with the current college sports structure, otherwise Trump’s order could be overturned by the courts. Still, he added that he’s skeptical Congress will take up the issue anytime soon.

“I haven’t seen anything from Congress over the last few years that tells me they’re all going to get their act together and, pun intended, pass one of these acts. I think this was a great showing by President Trump to attempt to solve some of the problems that will ultimately end up going nowhere.”