·         Each Division I university may allocate up to $20.5 million annually to compensate its athletes, with the amount increasing over time.

·         Includes retroactive payments (2016–2024) and the creation of a “College Sports Commission” to oversee payments, along with a platform (managed by Deloitte) to review agreements over $600.

·         Proposes adjustments to roster management, scholarships, and transfers, with special attention to lower-revenue sports to maintain their viability.

Backlash: Trump’s executive order

On July 24, 2025, Trump signed an executive order aimed at curbing the excessive commercialization of college sports. It seeks to limit abuses in NIL and third-party payments related to “pay-for-play” (payments induced by boosters/sponsors for recruitment), while preserving the right to legitimate sponsorships, and aims to restore federal regulatory uniformity. In addition, it requires universities with high sports revenues to strengthen women’s sports and non-revenue sports in terms of scholarships and roster spots.

Tensions and future challenges

All this has sparked debate about the impact on non-revenue sports, the amateur–professional dilemma, the employment status of athletes, potential legislation (SCORE Act), and tax or legal risks.
Conflicts also need to be resolved that may favor direct institutional payments to elite, high-revenue sports over those less attractive to promoters, potentially disadvantaging disciplines such as gymnastics, swimming, or track and field. Trump’s response seeks to counter this imbalance by requiring high-revenue athletic departments to increase—or at least not reduce—scholarships for non-commercial sports.

As a result, a unified federal law - the Student Compensation and Opportunity through Rights and Endorsements (SCORE) Act)- has been proposed to standardize NIL regulations nationwide, prevent athletes from being considered employees by granting the NCAA antitrust immunity, regulate agents, health, and education, and create an “Athlete Bill of Rights.” This law was approved in congressional committees in July 2025, with a House vote pending. Other legislative alternatives include the College Athlete Economic Freedom Act, which protects NIL opportunities for international athletes without affecting their immigration status, and the College Athlete Right to Organize Act, which proposes recognizing athletes as employees, allowing them to unionize.

" ["conclusion"]=> string(1389) "

College sports in the United States are undergoing a historic transformation, shifting from a strictly amateur model controlled by the NCAA to a hybrid one in which athletes can receive direct financial compensation for their name, image, and likeness (NIL). Court rulings, state laws, and the recent antitrust settlement have broken the traditional paradigm, recognizing the economic value generated by athletes. However, this change brings deep tensions: the risk of inequality among disciplines, the impact on non-revenue sports, dilemmas regarding athletes’ employment status, and the need for unified regulation. Political responses, such as Trump’s executive order and federal legislative proposals, seek to balance the new market with the preservation of the educational character and the viability of the entire collegiate sports ecosystem. The challenge ahead will be to find a framework that combines economic fairness, equal opportunities, and sustainability for all disciplines.

" ["laws"]=> NULL ["references"]=> NULL ["keywords"]=> NULL ["metadescripcion"]=> NULL ["categoria"]=> string(8) "articles" } ">--> es
·         Each Division I university may allocate up to $20.5 million annually to compensate its athletes, with the amount increasing over time.

·         Includes retroactive payments (2016–2024) and the creation of a “College Sports Commission” to oversee payments, along with a platform (managed by Deloitte) to review agreements over $600.

·         Proposes adjustments to roster management, scholarships, and transfers, with special attention to lower-revenue sports to maintain their viability.

Backlash: Trump’s executive order

On July 24, 2025, Trump signed an executive order aimed at curbing the excessive commercialization of college sports. It seeks to limit abuses in NIL and third-party payments related to “pay-for-play” (payments induced by boosters/sponsors for recruitment), while preserving the right to legitimate sponsorships, and aims to restore federal regulatory uniformity. In addition, it requires universities with high sports revenues to strengthen women’s sports and non-revenue sports in terms of scholarships and roster spots.

Tensions and future challenges

All this has sparked debate about the impact on non-revenue sports, the amateur–professional dilemma, the employment status of athletes, potential legislation (SCORE Act), and tax or legal risks.
Conflicts also need to be resolved that may favor direct institutional payments to elite, high-revenue sports over those less attractive to promoters, potentially disadvantaging disciplines such as gymnastics, swimming, or track and field. Trump’s response seeks to counter this imbalance by requiring high-revenue athletic departments to increase—or at least not reduce—scholarships for non-commercial sports.

As a result, a unified federal law - the Student Compensation and Opportunity through Rights and Endorsements (SCORE) Act)- has been proposed to standardize NIL regulations nationwide, prevent athletes from being considered employees by granting the NCAA antitrust immunity, regulate agents, health, and education, and create an “Athlete Bill of Rights.” This law was approved in congressional committees in July 2025, with a House vote pending. Other legislative alternatives include the College Athlete Economic Freedom Act, which protects NIL opportunities for international athletes without affecting their immigration status, and the College Athlete Right to Organize Act, which proposes recognizing athletes as employees, allowing them to unionize.

" ["conclusion"]=> string(1389) "

College sports in the United States are undergoing a historic transformation, shifting from a strictly amateur model controlled by the NCAA to a hybrid one in which athletes can receive direct financial compensation for their name, image, and likeness (NIL). Court rulings, state laws, and the recent antitrust settlement have broken the traditional paradigm, recognizing the economic value generated by athletes. However, this change brings deep tensions: the risk of inequality among disciplines, the impact on non-revenue sports, dilemmas regarding athletes’ employment status, and the need for unified regulation. Political responses, such as Trump’s executive order and federal legislative proposals, seek to balance the new market with the preservation of the educational character and the viability of the entire collegiate sports ecosystem. The challenge ahead will be to find a framework that combines economic fairness, equal opportunities, and sustainability for all disciplines.

" ["laws"]=> NULL ["references"]=> NULL ["keywords"]=> NULL ["metadescripcion"]=> NULL ["categoria"]=> string(8) "articles" } ">--> en
Leer en PDF
v 0
02 September 2025
Artículo
Gratis
Derechos de autor© The Impact Lawyers. Todos los derechos reservados. Esta información o cualquier parte de la misma no puede copiarse ni difundirse de ninguna forma ni por ningún medio ni descargarse ni almacenarse en una base de datos electrónica o sistema de recuperación sin el consentimiento expreso por escrito de The Impact Lawyers. Las opiniones expresadas en este artículo son las de los autores y no reflejan necesariamente las posiciones o políticas de The Impact Lawyers.
icon

Comentarios

Newsletter

¿Quieres leer más?

The Impact Lawyers ofrece un boletín GRATUITO que lo mantiene actualizado sobre las noticias y el análisis de las últimas noticias legales internacionales.
Complete el siguiente formulario y haga clic en suscribirse para recibir la suscripción al Boletín de The Impact Lawyers.

2
x
Suscríbete gratis

The Impact Lawyers Newsletter

  • Plantillas y guías prácticas para abogados y despachos de abogados
  • Podcasts, videos y seminarios web que explican cómo tener éxito
  • Consejos hechos por abogados y otros profesionales