President Signs Executive Order Intended to “Save College Sports”
Citing threats to the current college sports model, President Trump issued an executive order (EO) that is intended to protect and preserve college athletics, particularly non-revenue sports and women’s athletics. Although some parts of the “Saving College Sports” EO will result in tangible action by federal agencies, other portions, including provisions targeting institutions of higher education, are not legally binding and may therefore have limited impact.
While the order states that some of the new benefits gained by student athletes in revenue generating sports in recent years should be maintained, it notes that antitrust litigation and other legal challenges have eliminated important guardrails, such as limits on pay-for-play inducements and school transfers. As a result, the order seeks to reestablish some of these guardrails to prevent revenue generating sports from threatening the continued existence of non-revenue generating sports.
Specifically, the order states that it is the “policy of the executive branch that opportunities for scholarships and collegiate athletic competition in women’s and non-revenue sports must be preserved.” To that end, the order encourages – but does not require – athletic departments at colleges and universities to take steps to, depending on athletics revenue generated, increase or maintain scholarship opportunities and roster spots in non-revenue sports. The order also states that “it is the policy of the executive branch that third-party, pay-for-play payments to collegiate athletes are improper and should not be permitted by universities” but does not impose any requirements on institutions in this regard.
In addition, the order establishes new requirements for federal agencies, including:
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The Departments of Education, Justice, and Health and Human Services and the Federal Trade Commission must develop a plan to enforce the administration’s stated policies via applicable regulatory, enforcement, and litigation mechanisms;
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The Department of Labor and the National Labor Relations Board must take steps to clarify the status of student athletes, presumably for the purpose of decreeing such students to be non-employees; and
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The Department of Justice and the Federal Trade Commission must work to preserve college athletics when “unreasonably challenged” under antitrust or other legal theories.
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Jody Feder