President Donald Trump signed an executive order on Thursday that prohibits "third party, pay-for-play" payments to college athletes. The White House aims to address the "bidding wars" that have recently impacted college sports.
The order, as detailed in a fact sheet shared by a White House official, points out that court rulings have weakened the NCAA's transfer and recruiting regulations. This has led to a challenging environment that threatens the financial stability of college athletics.
This order has the potential to significantly impact college football and men's basketball. The transfer portal has transformed player recruitment into a multimillion-dollar market, with top teams investing heavily in their rosters.
The executive order will not affect fair-market compensation for athletes who participate in brand endorsements, according to the White House.
The order also aims to safeguard women's and nonrevenue sports. It mandates that revenue sharing between universities and college athletes be structured to protect these programs.
The president's order also highlights that the varying laws in 30 states have contributed to competitive imbalances in sports.
The specifics of enforcement and the mechanisms for ensuring equitable revenue sharing between different sports were not immediately clear.
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