President Donald Trump signed an executive order Thursday aimed at clarifying whether NCAA athletes should be considered employees of their universities. The move, detailed in an official White House fact sheet, could reshape college athletics at a time when name, image and likeness (NIL) deals, legal battles, and massive television contracts are already shifting the landscape.
The order directs the Department of Labor and the National Labor Relations Board (NLRB) to provide guidance affirming that college athletes are not employees of the institutions they play for. This aligns with the NCAA’s long-standing amateurism model but comes at a time when schools, conferences, and athletes are navigating major changes brought on by name, image, and likeness (NIL) regulations. Trump’s order also sets new requirements for universities: schools earning over $125 million in athletic revenue for the 2024–25 season must increase scholarships in non-revenue sports, while those generating at least $50 million must maintain their current scholarship levels, with an emphasis on supporting women’s sports and Olympic programs. While the order preserves athletes’ rights to earn through NIL deals, it prohibits direct pay-for-play inducements from third parties. Federal agencies, including the Departments of Education, Justice, and Labor, now have 30 days to draft and present plans for implementing these measures.
The order follows a Supreme Court ruling that struck down NCAA limits on education-related benefits, calling them antitrust violations. Additionally, a recent $2.7 billion antitrust settlement now allows schools to distribute up to $20.5 million annually to athletes. These developments blur the line between amateur athletes and employees, making Trump’s directive both controversial and timely.
Clemson, as part of a top-tier Power 4 conference, easily surpasses the $125 million revenue threshold. That means scholarship expansions for non-revenue sports will be mandatory if Trump’s order takes full effect. While this could benefit programs like track and field, swimming, and gymnastics, it also raises questions about financial sustainability and the balance between NIL opportunities and traditional athletic funding.
If federal regulators eventually rule that athletes are employees, universities like Clemson could face additional costs related to salaries, benefits, and potential collective bargaining. Conversely, if the amateur model is maintained, NIL deals will remain the primary way for players to earn compensation, leaving schools largely out of the payment process.
Trump’s executive order is an attempt to preserve amateurism while responding to the rapidly changing NIL era. However, legal challenges and competing federal legislation mean the future of college athletics remains uncertain. For Clemson and other major programs, the coming months could bring significant changes to scholarship structures, NIL rules, and the overall business model of college sports.
