The “Name, Image, and Likeness” (NIL) revolution has reshaped collegiate athletics. Players have more agency than even to earn their market value, make some of the money they generate for sports programs, and ensure their future even in the event of a catastrophic injury, or a failure to be selected in a pro league draft.
President Trump will reportedly sign an executive order to limit NIL money for players
President Trump loves the free market so much he’s going to limit NIL spending.
Photo by Tasos Katopodis/Getty Images
James Dator has been covering a wide range of sports for SB Nation for over a decade, with a special focus on the NFL.
That could potentially change in the near future, courtesy of an executive order filed by President Trump. Front Office Sports reported on Wednesday that Trump is “actively working” on an NIL order, which is expected to either establish NCAA-friendly rules to limit the earning potential of players, or at the least establish a commission to investigate athlete compensation. The end goal in either case would be to support power conference schools in their lobbying goals to limit high-profile players from joining smaller programs due to money.
In addition, legislation would likely put an earning cap on how much players can make through NIL, as well as codify athletes as “non-employees,” something player groups have been pushing for in several states.
This comes following the ruling of House vs. NCAA, a 2020 case settled last year for $2.75B which sought to lift restrictions on revenue sharing from broadcast rights. Congress has been working on its own bill to curb NIL spending, with negotiations ongoing about a proposed cap on NIL payments from schools. It’s unclear what this amount would be, but it’s accepted it would be substantially less that what programs are currently spending.
It comes in the wake of notable collegiate sports figures like Nick Saban decrying the explosion of NIL-based payments, and speaking to the president about his concerns. It should be noted that while Alabama (Saban’s former team) remains a powerhouse in college football, their NIL kitty is substantially lower than a wide array of schools, ranking 12th in future NIL investment, behind the likes of Auburn, LSU, Texas, and Georgia — among others.
The impetus behind legislation appears from the outside like sour grapes. Traditional powerhouses are losing their recruiting edge by not being able to keep up with NIL spending, lessening the amount of high-profile four, and five-star recruits coming to campus. This would fundamentally represent a power shift in football from a talent perspective, with ACC schools Virginia, Florida State, Clemson, Louisville, and North Carolina having much larger NIL commitments than numerous power conference schools.
It’s unclear at this time what a Trump order would look like, though it’s widely accepted it would be fundamentally worse for players and better for institutions when it comes to a revenue share.
Nothing says “free marketplace” quite like governmental intervention.
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