President Trump's executive order on college sports: Here's what it actually means

Yahoo

a day ago

WASHINGTON, D.C. — On Thursday morning in the nation's capital, NCAA president Charlie Baker spoke to a few dozen members and guests of the National Press Club — an operation located in Washington's downtown, just a short walk to the White House.
Just hours later, the association's years-long fight for federal intervention in college sports received, perhaps, a boost from the man living just a few blocks away.
President Donald Trump released his long-awaited executive order related to college athletics, announcing in a five-page order titled 'SAVING COLLEGE SPORTS' that he is directing members of his cabinet to create policy around several aspects of the industry that protect the NCAA and conferences from enforcing and creating rules to govern it.
But what exactly does Trump's executive order mean? What will it change, if anything, about college sports' athlete compensation and transfer environment?
The short answer, at least for now, is not very much.
The longer answer is … well … there are still questions.
What are the most important items in the order?
Trump's executive order has been a long time coming. In fact, just last week Yahoo Sports obtained a copy of a draft of the order, which isn't wholly different to the one he signed and released on Thursday.
Above anything else, the order's preamble describes the college athletics landscape as having been subject to unfair court rulings that 'created an out-of-control, rudderless system' which is 'under unprecedented threat.'
'Waves of recent litigation against collegiate athletics governing rules have eliminated limits on athlete compensation, pay-for-play recruiting inducements, and transfers between universities, unleashing a sea change that threatens the viability of college sports,' Trump writes in the order.
He goes on to write critically that some schools are paying their athletes as much as $50 million this year from a combination of House settlement-related revenue share and third-party NIL. 'A national solution is urgently needed to prevent this situation from deteriorating beyond repair and to protect non-revenue sports, including many women's sports,' he writes.
How he plans to do this is to direct various members of his cabinet — the attorney general, secretary of labor, secretary of education, etc. — to create policy around several concepts that the NCAA and conferences have been requesting help on from Congress for years. Among those:
Protecting scholarships for non-revenue sports: The executive order, most notably, requires schools to maintain or even increase the number of scholarships they provide to non-revenue sports. This is geared to protect Olympic and women's sports that are at risk of elimination as schools direct more funding away from those and to the sports that generate the revenue like football and men's basketball. Those with $125 million or budgets (most of the power league schools) must provide more scholarship opportunities than they did last year, for instance. Those with budgets of $50 million must provide at least the same, as seen in a screen shot of the section here.
Prohibit third-party, 'pay-for-play': You might call this the prohibition of booster collective pay to athletes, which, in a way, codifies the House settlement terms that prohibit collective pay to athletes if they are not deemed to be for legitimate endorsement or commercial opportunities. This issue is at the heart of negotiations among attorneys that is expected to result in a resolution soon that permits collectives to operate in a more open capacity than first thought. The executive order reinforces that provision in the House settlement.
How does Trump plan to enforce these parameters? Well, that remains a bit murky, but he suggests in the order that members of his cabinet, as well as the Federal Trade Commission, have 30 days to create a plan on the enforcement of such, including potentially withholding federal funding for violators, opening up Title IX investigations, etc.
Athlete employment: Trump directs the Secretary of Labor and the National Labor Relations Board to 'clarify the status of college athletes' — an obvious gesture toward the ongoing debate over courts potentially deeming college athletes as employees. As stated in the order preamble, Trump is against college athletes becoming employees and is clearly, with this directive, ordering cabinet members and the NLRB — he appoints the board — to rule that college athletes are students. Ironically enough, while many college leaders fight against employment, some of them believe collective bargaining is the only solution for the industry.
Limited liability protection: This is another issue the NCAA and conferences have spent millions of dollars and six years lobbying for. They want to be protected from legal challenges so they can enforce their rules over things such as transfers, roster limits, booster pay — many of which have been deemed illegal by courts. Trump clearly disagrees with these court rulings, as he notes in the preamble.
The order directs the attorney general and the chairman of the Federal Trade Commission to create policies to protect the 'long-term availability of college athletic scholarship and opportunities' when such is 'unreasonably challenged under antitrust' law. The attorney general and the FTC have 60 days to create such a plan, the order says.
What are the immediate impacts of the executive order?
The answer here is potentially … nothing.
Trump's cabinet members — many of whom are quite busy with other more pressing matters — will need to make policy around these subjects. The specifics of that policy will dictate exactly how pivotal, if at all, this order is.
What is a certainty is that whatever policies are created are not law and will likely be subject to legal scrutiny. Congressional action and court rulings are law in this country — not executive orders, legal experts tell Yahoo Sports.
Baker even suggested this during his talk Thursday morning.
'You can't fix this stuff from executive order,' he said. 'Our focus for now really needs to be trying to get stuff dealt with through the legislative process.'
As it turns out, Wednesday was a historic day for college sports with regard to congressional legislation. An all-encompassing federal college sports bill made its way out of committee for the first time since the NCAA's lobbying efforts began nearly six years ago. The SCORE Act, bipartisan but pro-Republican and NCAA-friendly legislation that many Democrats are against, received the necessary votes to advance out of committees and is eligible for debate on the House floor when members return in September from their traditional summer break.
In many ways, the Score Act grants the NCAA and conferences similar protections as Trump's order. Above anything, Trump's executive order may get Congress to more urgently and swiftly push the bill across the goal line. However, if it does advance out of the House, the SCORE Act faces stiff pushback in a divided U.S. Senate, where at least seven Democrats are needed to overcome the filibuster and reach the 60-vote margin for any bill passage.
The Senate, though, has been working toward the introduction of its own legislation, led by Sen. Ted Cruz, who, much like Trump, has made college sports regulation a priority. He's been in negotiations now for months with several Democrats, most notably Chris Coons, Richard Blumenthal and Cory Booker. No agreement has been reached despite more than a year of intense talks.
Will Trump's executive order change that?
It's one of many questions on the topic that remains a mystery.