President Trump Signs Order To Clarify College Athletes’ Employment Status

WASHINGTON (AP) — President Trump has signed an executive order directing federal authorities to clarify whether college athletes can be considered employees of their schools.

The move aims to establish clearer national standards in the NCAA’s name, image, and likeness era.

The executive order states that endorsement deals from third parties should continue to be permitted so long as they reflect a “fair market value.”

Full story: https://t.co/iaXWRyRiNH pic.twitter.com/BUkVpJaf3l

— ESPN (@espn) July 24, 2025

The order seeks to address the chaotic landscape of college sports, where athletes can now earn income from endorsements and schools can pay them directly.

Trump’s order also calls for preserving scholarships and roster spots for non-revenue sports and asks the Justice Department to protect athletes’ rights.

On the White House website, details of the executive order are outlined.

• The Order requires the preservation and, where possible, expansion of opportunities for scholarships and collegiate athletic competition in women’s and non-revenue sports.
• The Order prohibits third-party, pay-for-play payments to collegiate athletes.  This does not apply to legitimate, fair-market-value compensation that a third party provides to an athlete, such as for a brand endorsement.
• The Order provides that any revenue-sharing permitted between universities and collegiate athletes should be implemented in a manner that protects women’s and non-revenue sports.
• The Order directs the Secretary of Labor and the National Labor Relations Board to clarify the status of student-athletes in order to preserve non-revenue sports and the irreplaceable educational and developmental opportunities that college sports provide.
• The Order directs the Attorney General and the Federal Trade Commission to take appropriate actions to protect student-athletes’ rights and safeguard the long-term stability of college athletics from endless, debilitating antitrust and other legal challenges.
• 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 U.S. Olympic and Paralympic Teams and other organizations to protect the role of college athletics in developing world-class American athletes.

Federal Judge Approves $2.8B Settlement, Opening Door For College Athlete Compensation

In June, Federal Judge Claudia Wilken, who has presided over multiple landmark NCAA cases in the past, approved an NCAA settlement, giving it the legal weight needed to move forward.

With the House v. NCAA settlement approved, here is what the timeline looks like in the next few months, per the new College Sports Commission: https://t.co/aNV6udOuCK pic.twitter.com/qdI9sXP3TU

— Pete Nakos (@PeteNakos_) June 7, 2025

The deal can be broken into three parts: reimbursing former student-athletes who narrowly missed out on the NIL era, compensating future student-athletes directly from school revenue, and implementing a laundry list of new roster and enforcement rules.

$2.77 billion in back payments will be sent to former athletes. Athletes who competed in college sports since at least 2016 are eligible for compensation. Going forward, athletic departments can share up to $20.5 million annually in revenue with their athletes, starting in the first year of the 10-year agreement. That number is expected to rise over time.

The deal resolved three major antitrust lawsuits — House v. NCAA, Hubbard v. NCAA, and Carter v. NCAA — which challenged the organization’s historic limits on athlete compensation.

Take us with you, wherever you go.

Download the new & improved KSL Sports app from Utah’s sports leader. You can stream live radio, video and stay up to date on all of your favorite teams.